TAIPEI (Taiwan News) — Taiwan’s Ministry of Labor said Wednesday it will expand government subsidies and encourage businesses to provide greater childcare support, per CNA.
At a press conference, the ministry said employees with children under age 12 could receive childcare subsidies of up to NT$10,000 (US$315) per year under the new program. The government will cover between 50% and 70% of the subsidy, depending on company size.
Additional support will also help businesses that establish childcare facilities and nannies, reducing the burden of childcare services for employers. The labor ministry said NT$142.4 million will be invested to promote the “Business Childcare 333: Government Assistance” subsidy program, which will launch on May 1.
Huang Wei-chen (黃維琛), director of the ministry’s Department of Employment Welfare and Retirement, said current regulations allow companies establishing childcare facilities, including kindergartens or infant care centers, to receive subsidies of up to NT$5 million. If equipment upgrades are needed, businesses can receive up to NT$500,000 annually.
Employers providing childcare services, such as subsidies for employee childcare agencies or on-site nannies, are eligible for a maximum annual subsidy of NT$600,000. Despite these incentives, the ministry said only about 130 of Taiwan’s roughly 8,600 companies with more than 100 employees operate childcare facilities.
Huang said many companies have expressed concerns about existing subsidy regulations, unfamiliarity with relevant laws, or doubts about the long-term sustainability of operating company-run childcare facilities. As a result, the labor ministry has decided to loosen restrictions and expand subsidies.
For example, under the current system, employers receive government subsidies covering 50% of childcare costs per employee child each year, up to NT$4,000. Employees must first place their children in childcare facilities before applying for subsidies.
Huang said the new regulations remove the requirement that children be enrolled in childcare facilities. The subsidy amount will also increase, with government support covering 70% of costs for companies with fewer than 100 employees, 60% for companies with 100 to 499 employees, and 50% for companies with more than 500 employees.
Labor Minister Hung Sun-han (洪申翰) said that when businesses support employees’ families, workers can focus on their jobs with greater peace of mind. Huang said this helps companies retain talent, creating a positive cycle for both employees and employers.
