Government to support children from 0 to 18 years old! Child-rearing families to receive subsidies starting at NT$2.28 million

Taiwan is launching a significant initiative to address its declining birth rate with a new "0 to 18 years old Growth Allowance" policy. President Lai's administration announced the strategy, which aims to provide substantial financial support to families raising children.

The policy will offer a monthly subsidy of NT$5,000 per child. A key innovation is that for children aged 6 and older, half of this amount, NT$2,500, will be deposited into a "Youth Future Account." This fund will accumulate until the child reaches 18, providing a potential starting capital of at least NT$360,000 for higher education, employment, or entrepreneurship. This feature is designed to support upward mobility and equal opportunity for young people.

Officials estimate that a couple with an average monthly salary of NT$40,000, who conceive through assisted reproduction and utilize public childcare services, could receive a total of approximately NT$2.75 million in government subsidies by the time their child turns 18. This includes various benefits such as assisted reproduction subsidies, birth grants, parental leave allowances, childcare subsidies, and the growth allowance itself. If the child is cared for at home until school age, the total subsidy is estimated at around NT$2.28 million.

Compared to international standards, Taiwan's monthly growth allowance of NT$5,000 is considered mid-to-high level in purchasing power, comparable to Norway's NT$5,830 and significantly higher than Japan's NT$2,100-3,150 or South Korea's NT$2,300. The policy's extended age coverage up to 18 years also aligns with or exceeds that of several European nations. The success of the "Youth Future Account" component will depend on the specifics of its implementation, including disbursement methods, matching schemes, withdrawal conditions, and investment management.