Government subsidy of 60% for farmers’ retirement savings fund! The higher the self-withdrawal rate, the greater the subsidy. Adjustments will be open starting from 11/1

The withdrawal rate of the rural pension fund will be adjusted starting from 11/1. (Provided by the Labor Insurance Bureau)

[Reporter Li Lianghui/Taipei Report] The rural retirement savings fund system has both flexibility and generous protection. The government burden has increased to 60%. Farmers (fishermen) can choose the contribution rate within the range of 1% to 10% of the minimum wage according to their personal financial ability. Adjustments are provided twice a year. The last adjustment application for this year (115) will be accepted from November 1. According to statistics from the Bureau of Labor Insurance, the proportion of people who made contributions in August reached 30.96%, or 88,132 people, and nearly 95% made contributions to the highest rate of 10%, bringing the overall average contribution ratio to 9.74%.

The Labor Insurance Bureau stated that after the "Farmers' Retirement Fund Regulations" were revised and implemented this year, the government's contribution sharing ratio has been increased from the original 50% to 60%, with farmers bearing 40% and the government bearing 60%. If farmers (fishermen) friends increase the contribution ratio, not only will their personal retirement reserves increase, but they will also receive additional government subsidies, accelerating the accumulation of funds in personal accounts.

The Bureau of Labor Insurance made a trial calculation based on the 115-year minimum wage of 29,500 yuan. Assuming that farmers contribute 5%, the total contribution amount is 2,950 yuan (29,500 × 5% × 2). Farmers only need to pay 40% or 1,180 yuan per month (2,950 yuan × 40%). The other 60% contribution amount of 1,770 yuan will be subsidized by the government (2,950 yuan × 60%).

If farmers apply for an increase to 10% in November, the 10% contribution rate will take effect on December 1, and the total contribution amount will increase to 5,900 yuan (29,500 × 10% × 2). However, farmers’ monthly contribution amount will only increase to 2,360 yuan (5,900 yuan × 40%), an increase of 1,180 yuan; the government will also subsidize 60% of the contribution amount of 3,540 yuan (5,900 yuan × 60%).

According to the analysis of the Labor Insurance Bureau, although farmers only pay an extra 1,180 yuan per month, the additional money injected by the government into the special account every month will increase from 1,770 yuan to 3,540 yuan (an increase of 1,770 yuan). The retirement account will have a stable account of 5,900 yuan every month. Therefore, if farmers (fishermen) friends today If there is room for annual financial deployment, you may wish to seize the adjustment opportunity in November and submit an application for an increase to the grassroots agricultural (fishery) association in the place of household registration before November 30; after the agricultural (fishery) association notifies the Labor Insurance Bureau before the end of the month, the new adjusted ratio will take effect on December 1, 2015. If you miss the application deadline in November, you will have to wait until May 2016 for the next adjustment.