To create a more family-friendly childcare environment, the government is preparing to launch a new subsidy policy. The Ministry of Labor has announced plans for an incentive program that rewards companies allowing employees with children under 12 to reduce their working hours by one hour per day while maintaining full pay. The government will cover the cost of the reduced hourly wage and also provide subsidies to companies that hire temporary replacement staff.

Labor Minister Hung Shen-han stated that companies offering remote work options to parenting employees will also be included in the incentive program. The full implementation of this policy is targeted for 2027 (Minguo Year 116).

Under the current Gender Equality in Employment Act, employees working for employers with 30 or more staff may request a one-hour daily reduction in working hours or adjusted schedules when raising children under the age of three. However, this reduced hour is generally unpaid. Recently, several legislators have proposed expanding the eligible age to six and introducing wage subsidies, while others have suggested formally recognizing remote work as a legal option.

How does the new policy differ from the current system? Insights from the Ministry of Labor on the incentive program's rationale

Responding to legislative proposals and advocacy group demands, the Ministry's new plan expands eligibility to parents with children under 12. Minister Hung explained that while current regulations prohibit employers from rejecting reduced-hour requests from parenting employees, international models such as those in Japan and South Korea emphasize mutual agreement between labor and management and allow employers to refuse under certain conditions.

Hung noted that Taiwan's regional industrial disparities are significant—for example, central Taiwan has many manufacturing companies with shift-based operations, and most local governments favor incentive-based approaches. Therefore, the government will cover the wage costs associated with the one-hour daily reduction in working hours. If companies hire temporary replacement staff as a result, the government will also provide subsidy allowances.

Regarding remote work, Hung acknowledged that pandemic-era experiences revealed potential internal governance challenges, so implementation conditions must be carefully designed. Huang Chi-ya, Director-General of the Department of Labor Conditions and Employment Equality, added that the ministry will first observe the outcomes of the reduced-hour incentive program before evaluating how to proceed with legislative reforms.

Can remote work truly reduce parenting burdens? Civil groups argue effectiveness may be limited

Civil society organizations have expressed mixed views on the Ministry's plan to include remote work in the incentive scope. According to reports from China Times News Network, Lee Ying-hsueh, director of the Awakening Foundation, stated that remote work essentially means "working from a different location" and does not address the core issue of long working hours for parenting employees. She argued that its impact on improving work-life balance is minimal.

Yang Shu-wei, Secretary-General of the Taiwan Labor Front, also warned that remote work increases employees' household expenses, such as electricity, water, and internet bills. Countries like Australia have clear regulations requiring employers to cover such costs. As Taiwan advances its incentive measures, the Ministry of Labor should incorporate cost-sharing mechanisms into the overall policy design.

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  • Source: PR Times
  • Category: News