TAIPEI (Taiwan News) — Taiwan’s Ministry of Labor has announced a package of subsidies worth NT$1 billion (about US$32 million) that will provide some service workers with an additional NT$6,000-13,000 per month in take-home pay for up to one year.
Labor Department Deputy Director of Development Chung Chin-chi (鍾錦季) said the wage subsidies target industries facing employee shortages, per PTS. The plan represents an expansion of existing post-pandemic government wage subsidies, and is available to those earning a minimum salary of NT$28,000-30,000 and above, depending on where the individual lives.
Those working as housekeepers and cleaners in the accommodation industry, and in restaurant and catering jobs are eligible.
The subsidies will provide NT$6,000 monthly to workers, however the middle aged (45-65 years old), the elderly (over 65), women returning to the workforce, Indigenous people, new immigrants, and some other targeted groups, are eligible for NT$10,000 per month extra. Those working in designated remote locations will be eligible for an additional NT$3,000 per month, making the maximum subsidy possible NT$13,000 per month.
Despite the extra income, labor advocate Roy Ngerng (鄞義林) said the policy appears to mainly benefit businesses, and is not likely to result in better conditions for workers over the long term.
“A smarter system would have required companies to pay higher salaries, while the government provides wage subsidies for a transition period, so that even after the subsidies run out after a year, the company would still be paying a higher salary,” Ngerng told Taiwan News. “It doesn't look like the program can enable structural changes aimed at improving wages in Taiwan.”
Sun Yu-lien in 2022. (CNA photo)
Sun Yu-lien (孫友聯) of the Taiwan Labor Front agreed, and said the subsidies will likely attract additional workers to labor-short industries, but employers needed to change their mentality if they wanted to retain workers and develop their industries over the long term.
“Industries can only develop better by giving workers a reasonable wage,” Sun said. He added that once the incentives expire, employers should maintain the salary levels to retain existing talent, otherwise the problems of labor shortages will persist.
Labor ministry data released in May showed that 70% of young Taiwanese people are earning between NT$27,000 and NT$29,000 per month. In response, the ministry launched a youth development plan to move young workers away from low-income jobs, that the ministry said were in food, retail, and other service industries.
When asked about the two different policy approaches, a ministry spokesperson told Taiwan News that the wage subsidies were a short-term policy targeted at specific industries, while its youth development programs were long-term, and designed for a specific age group. The spokesperson said the policies would not work against one another.