NHI premiums

Looking at the mandatory NHI premiums, I’m not sure if I’m reading this correctly. For self-employed individuals, the contribution ratio is 100%. The insurance premium rate is 5.17%. So does that mean as a self-employed individual with a family of 6, I would need to pay monthly salary * 5.17% * 6 = 31.02% of total monthly salary each month? I really hope I’m understanding that wrong, as that seems really expensive.

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Well I found this chart which seems to confirm the amount. There is a cap on the salary basis, but it runs quite high. Frankly it looks like it might be cheaper to avoid becoming eligible by taking 2 trips out of the country every 6 months.

It’s ridiculously expensive if you earn a decent salary, particularly if you’re married with kids. If I could chose there’s no way I would voluntarily sign up, if you can legally avoid it then go for it!

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It’s not that much. But if you have dependents it does add up to more than the income tax. My perspective on that front is that you win some you loose some. Overall the deductions NHI and tax are in the region of fair, I imagine.

If you have good private insurance, then I guess that’s that… but NHI is better than many private insurance in the states…

But otherwise you somehow keep your known income low, like many Taiwanese…

Yes, it sure seems that way. I saw another thread which recommended registering under the spouse, but unfortunately I don’t have that option.

It seems like a lot more than income tax, considering that you get deductions per child on income tax, but it works the opposite way for NHI premiums. By my calculations, premiums are ~30% for a family of 6, but income tax would be roughly ~7% of income.

Will answer here so my post doesn’t get lost in the main gold card thread.

I think that’s feasible in principle for the time being, but you’d also want to consider the costs associated with 6 people leaving the country every several months, especially at the moment with quarantine requirements. Plus the out-of-pocket medical expenses for those same 6 people that you’d have to pay if not insured.

You’d also want to check the impact of the recent amendment to the 6-month waiting period for NHI eligibility. This has normally been discussed as a benefit in that it will allow gold card holders immediate access to NHI coverage…but I wouldn’t be surprised if it also obligates us to get NHI immediately, in which case your proposal wouldn’t work down the line when the act comes into effect.

At present, if your income is wholly foreign-sourced, the NHI rate is just the minimum of ca. NT$826 per month (I’m not sure whether that’s adjusted later based on tax returns - would need someone better informed to check), so that’s something to look into too.

Finally, I think that NHI contributions are tax-deductible if you take the itemized deduction rather than standard deduction, so if you do end up paying a lot in NHI contributions, the impact might not be as high as initially expected (you’d have to do the calculations).


Also, see the fourth footnote in your link:

Number of Dependents: Maximum of three, even if actual number of dependents is higher.


It’s overpriced the NHI but the way I look at it is that I am paying my social responsibility. Overall the system of tax is more than fair. So I am happy to pay it.

Same people trying to dodge NHI are probably whining about china :laughing:

Theres a way to park the spouse and kids under a 'tradesperson union ’ if your spouse is registered as a tradesperson of some sort. It’s legal I believe even if it seems a little dodgy.

This is a way that some folks can reduce those rather punitive premiums on high earners when they take the whole family into account . May not be so feasible if spouse is a foreigner. People in Taiwan still pay NHI but at reduced rates through various methods such as above.

I don’t know how it works exactly so ask an accountant or Taiwanese person.

That’s also what the NHI office told me (or what I understood through the language barrier): No local employer, then only need to pay the $826 per month. Not sure if I will have to pay much more after my first tax return here, though…

Regarding OP: Maybe in your situation it would make sense to talk to some tax lawyer / CPA about possibilities. Not sure about these things, but I guess there could be some options about insuring your family (maybe you can somehow hire your wife either directly or through a local company for a low salary and let her insure the kids or something in that direction). Sounds like you‘ll need professional help in that regard, though.

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That sounds bizarre :laughing:

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If you pay attention you will see a lot of trade unions for this and that about. Little offices in neighbourhoods . How they make money is through these kinds of insurance premium schemes. It’s legit if sometimes a little dodgy. It’s Taiwan.

It does kind of explain some of the shitty tradespeople here, if when you call for a plumber or whatever you just get some random person’s husband/son/brother-in-law.

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Well yes almost anybody can register as a trade person in some of these unions . Some of these are purely for insurance. And indeed it may be one of the only ways that freelancers can file for NHI…I’m not sure. I think it’s related to their laobao as well as NHI. Not sure. It’s a handy money earner.

Yea I think my dad told me I should join one of these trade unions because it seems you can get laobao through it. But it does cost money.

Ain’t nuthin’ free, TL.

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If you approve of taiwan pay your your taxes right.

Great catch! So that means the aforementioned chart is complete, which has the maximum monthly premium being 37636 TWD. That’s still a lot, but it at least makes it cheaper than my current insurance…just barely.

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Haha, interesting. Yes it sounds like it may be worth getting some professional help.

Ah, that’s good news too. I guess that at least will give me some time to figure all this out.