TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) on Wednesday announced a new monthly subsidy of NT$5,000 (US$158) per child from birth to age 18, with officials saying the program would also cover children born to unmarried parents and adopted children.
Officials said “the allowance is tied to the child, not the parents,” meaning any child with a biological father or mother who is a Taiwan citizen would qualify for the subsidy, including children born to unmarried parents, per Liberty Times. The policy is part of Lai’s newly unveiled population policy, which includes 18 measures aimed at addressing the country’s declining birthrate.
The first phase of the plan focuses on family support and includes the new child development allowance. Under the proposal, children under age 6 would receive the full NT$5,000 in cash each month, while those aged 6 to 18 would receive half in cash and half deposited into a dedicated savings account.
Under the proposal, children under age 6 would receive the full NT$5,000 as cash each month, according to Liberty Times. For children aged 6 to 18, half would be paid in cash, while the other half would be deposited into a dedicated savings account.
Officials said the government would deposit NT$2,500 into each child’s account every month. Parents or guardians would be able to monitor the balance but would not be permitted to withdraw the funds.
Based on current two-year fixed deposit interest rates, officials estimated each child would accumulate at least NT$360,000 by age 18 for purposes such as education or starting a business, Liberty Times reported. They added that the final amount could be higher because the accounts would be professionally managed by domestic and international asset management firms using a model similar to Taiwan’s National Pension Insurance Fund.
The Cabinet also plans to introduce legislation to oversee the program. Officials said the current Children and Youth Future Education and Development Accounts Ordinance mainly targets economically disadvantaged children and is too limited for the new universal subsidy and investment account system.
Next week, the Legislature’s Social Welfare and Environmental Hygiene and Finance committees are scheduled to jointly review opposition-backed bills proposing government-supported savings accounts for Taiwan’s youth. Lawmakers will also examine a DPP proposal led by Legislator Kuo Kuo-wen (郭國文) on investment savings accounts for children and youth, while the Cabinet is expected to submit its own version for consolidated review.
