Occupational Injury Q&A for Employers (2) – Wage Compensation

Q7. After an occupational injury occurs, what compensation responsibilities does the employer have?

A: The employer's occupational injury compensation responsibilities originate from Article 59 of the Labor Standards Act, and after the Labor Occupational Accident Insurance and Protection Act was enacted, they also correspond to Article 26 of that act. Paragraph 1 of Article 59 of the Labor Standards Act corresponds to medical benefits, Paragraph 2 to injury and sickness benefits (wage compensation), Paragraph 3 to disability benefits, and Paragraph 4 to death benefits.

Among these, the wage compensation portion must be paid on payday, while the others can be applied for from the Bureau of Labor Insurance afterward. There are specific time-related requirements that must be carefully observed. For relevant regulations, please refer to Article 30 of the Enforcement Rules of the Labor Standards Act.

Q8. How is wage compensation calculated?

A: The occupational injury wage compensation stipulated by the Labor Standards Act is intended to allow employees to recover from illness without worry after suffering an occupational accident. To ensure that the injured worker's original living conditions are not affected, the law requires employers to pay wage compensation based on the employee's original salary conditions (original wages), calculated on the basis of the full salary the employee would normally earn on the previous day or in the previous month under normal working conditions. The relevant provisions can be found in Article 31 of the Enforcement Rules of the Labor Standards Act.

The discrepancy between employers' and the Ministry of Labor's definitions of "wages"

If an employee does not earn a fixed salary but instead relies primarily on commission-based income, or works in a position where various allowances make up the monthly salary, calculating the "original wage" can be very disadvantageous for the employer. Common issues that arise in practice include: "He originally received a night shift allowance, but now he can't even work, so of course the night shift allowance shouldn't be included in the wage compensation base," "Year-end bonuses or performance bonuses are paid separately, how can they be counted in the wage compensation?", "We originally provided a professional license allowance to the employee, but his license cannot be used for these few months, so naturally the license allowance should be deducted," and so on. However, the Ministry of Labor's definition and payment standards for wages are broader than most employers imagine. Generally speaking, anything that employees regularly receive, or that is customarily given, falls within the scope of "original wages" for wage compensation purposes.

After understanding these regulations, employers may wish to consider how to design a reasonable salary structure so that when a high-salary employee suffers an occupational injury, the employee's rights as a victim can be protected while avoiding disputes over wage determination.

Q9. Can group insurance and condolence payments be counted toward wage compensation?

A: Can the NT$10,000 red envelope (condolence payment) that Mr. Chih gave Datian be deducted later when calculating wage compensation? If it was given under names such as "condolence payment" or "occupational injury red envelope," there may be problems if you later try to offset it against wage compensation. In practice, employers giving red envelopes to injured workers is a symbol of responsibility and care for employees. If an employer wishes to have it counted toward wage compensation, it is advisable to clearly record on the payment description and in the accounting entries that it is part of the occupational injury wage compensation.

In addition, the coverage and payment conditions of group insurance vary widely, so it is difficult to give a one-size-fits-all answer as to whether group insurance payments can serve as wage compensation. If the insurance premiums are not paid by the employer, and the insurance contract is not specifically set up for occupational injury cases, using it as part of wage compensation often gives rise to legal disputes. Employers are advised to consult with experts when signing insurance contracts with group insurance providers to confirm whether the insurance can be used to offset occupational injury wage compensation. (For offset regulations, please refer to Article 34 of the Enforcement Rules of the Labor Standards Act).