Unpaid Leave Subsidy Extended! Ministry of Labor Announces 9 Industries Eligible for Up to NT$11,500 – Application Deadline and Eligibility Explained

In April last year, the United States implemented retaliatory tariff measures, affecting certain industries in Taiwan and causing a sharp increase in the number of employees on reduced work hours (unpaid leave). In response, the Ministry of Labor launched an employment stabilization program in August last year, opening wage differential subsidies for workers in nine designated industries. Affected employees could receive up to NT$11,500 per month, with the initial program set to expire on July 31. Today (10th), the Ministry convened an Employment Stabilization Measures Consultation Meeting and decided to extend the program until October 31.

The wage differential subsidy covers 70% of the difference between pre- and post-reduced work hours salaries, with a maximum monthly payment of NT$11,500. The nine eligible industries include food and feed manufacturing, textile, rubber products manufacturing, plastic products manufacturing, metal products manufacturing, electrical equipment and apparatus manufacturing, machinery equipment manufacturing, motor vehicles and parts manufacturing, and other transportation equipment and parts manufacturing. Employees who have agreed with their employers to take reduced work hours for more than 30 days and have been registered with local labor authorities are eligible to apply.

The subsidy amount is calculated as 70% of the difference between the average monthly insured salary from one to three months before the reduced work hours and the actual agreed salary during the reduced period. The amount is rounded up to the nearest hundred and paid monthly. In addition to the wage subsidy, employees who also participate in the "Re-skilling Program for Workers on Reduced Hours" can receive a combined maximum of NT$16,300 per month.

At today’s (10th) consultation meeting, the Ministry of Labor announced the extension of the employment stabilization measures from August 1 to October 31. Deputy Minister Li Chien-hung explained that although the U.S. Section 301 investigation results on forced labor have been released—and Taiwan’s 10% tariff rate is relatively low compared to other countries—the investigation on "overcapacity" has not yet been finalized. Additionally, some affected industries are still in the adjustment and recovery phase, with inconsistent market demand, order intake, and operational adjustments. Therefore, the Ministry decided to provide these nine industries with an appropriate buffer period and transitional support.

Li stated that if, by the end of October, these nine industries do not reach the Ministry’s established "warning threshold," the employment stabilization measures will not be extended further. Over the next three months, the Ministry will continue monitoring the economic conditions of these industries. If any industry reaches the warning threshold, the Ministry will reassess and possibly convene another consultation meeting to review the program’s continuation.

The warning threshold includes not only the number of employees and companies on reduced hours but also composite indicators such as the proportion of workers and those exiting employment within each industry. Huang Chiao-ting, Group Leader of the Employment Services Division at the Directorate-General of Labor Force Development, added that operational indicators such as customs export data and production value will also be comprehensively considered during the meetings.