TAIPEI (Taiwan News) — The Cabinet on Thursday approved draft amendments to raise key National Pension payments to NT$5,000 (US$158) a month.

If passed as proposed, more than 1.76 million people would benefit, with annual funding estimated at NT$86 billion, per CNA. Cabinet Spokesperson Michelle Lee (李慧芝) said Premier Cho Jung-tai (卓榮泰) urged the legislature to move quickly on budget deliberations so related supplementary budgets can be submitted.

The amendments, drafted by the Ministry of Health and Welfare, include higher benefit levels, a new inflation adjustment mechanism, and the removal of provisions seen as penalizing marriage. The bill will now be sent to the Legislative Yuan for review.

Under the proposal, monthly payments for the old-age pension with basic guarantee, survivor benefits, and Indigenous allowances would rise from NT$4,049 to NT$5,000. The basic guaranteed disability pension would increase from NT$5,437 to a projected NT$6,715.

The National Pension Act’s means-testing thresholds have not been adjusted for 17 years, prompting the Cabinet to ease eligibility rules amid rising wages and property prices. The draft raises the individual income cap from NT$500,000 to NT$600,000 and the asset limit for land and housing from NT$5 million to NT$10.25 million, while removing the deduction cap for a sole owner-occupied residence.

While the minimum guaranteed benefit is already subject to a four-year adjustment cycle, the government said this has not kept pace with inflation. The draft adds an interim review mechanism allowing immediate adjustments if the two-year consumer price index growth rate reaches 3%.

Current rules that impose fines if an insured person’s spouse fails to pay premiums on their behalf by the deadline have been widely criticized as penalizing marriage. The draft amendments remove this requirement.

Deputy Health and Welfare Minister Chuang Jen-hsiang (莊人祥) said the National Pension allows people to continue accumulating coverage during career transitions, complementing labor insurance. He said contribution rates stand at about 60% overall and 90% among those aged 65 and older, and expressed hope the changes would further improve compliance.