TAIPEI (Taiwan News) — Taiwan's Legislative Yuan on Monday (July 15) passed amendments to labor laws that allow employers to postpone the mandatory retirement age after consultation with employees. 

The amendments to the Labor Standards Act remove the previous hard limit of 65 for mandatory retirement. Employers can now extend an employee's tenure if both parties agree, per RTI.

Lawmakers also passed revisions to the Middle-aged and Elderly Employment Promotion Act (中高齡者及高齡者就業促進法). These require the government to develop plans at least every three years to promote workplace friendliness for middle-aged and older workers.

Taiwan is to approach a super-aged society in 2025. The changes address concerns about a shrinking workforce as Taiwan's population ages.

The labor participation rate for people over 65 in Taiwan is less than 10%. It lags behind neighboring countries like Japan and South Korea.

Wang Cheng-hsu (王正旭), a legislator from the Democratic Progressive Party (DPP), who proposed the amendments, said he hoped the changes will help alleviate labor shortages. Wang emphasized the need for additional measures to protect workers' rights during the negotiation process.

Kuomintang Legislator Wang Yu-min (王育敏) acknowledged the international trend of delaying retirement but noted Taiwan's low labor participation rate among older workers. Wang expressed support for the amendments while calling for further discussion on proposals for more mandatory retirement age increases.

The amended Labor Standards Act also allows employers to offer assistance with retirement planning, adjustments, or re-employment to middle-aged and older workers within two years of their reaching the previous mandatory retirement age.