National Pension Law Amendments Under Review Amidst Party Disagreements on Benefit Increases

Lawmakers in Taiwan's Legislative Yuan are currently deliberating proposed amendments to the National Pension Act, but significant divisions have emerged regarding the extent of benefit increases. The committee is reviewing various proposals that aim to adjust pension amounts, leading to a temporary deferral of key clauses as parties grapple with differing financial projections and priorities.

The current National Pension Act, established in 2020, sets the basic old-age pension at NT$3,500 and the disability pension at NT$4,700, with adjustments scheduled every four years. However, citing rising inflation, the Ministry of Health and Welfare proposed raising the basic old-age pension to NT$5,000 and the disability pension to NT$6,715. This proposal aims to better reflect living costs and ensure adequate support for beneficiaries.

Legislators from the ruling and opposition parties have put forward their own amendments, with proposals ranging widely. Some suggest maintaining the current NT$3,500, while others advocate for increases up to NT$8,000 or NT$12,000 for old-age pensions. The Democratic Progressive Party and the Taiwan People's Party have also submitted proposals, with some aligning with the executive branch's NT$5,000 figure, while others suggest different adjustments.

These proposed increases have raised concerns among government officials. Vice Minister of Health and Welfare, Lü Chien-te, warned that raising the basic pension to NT$6,000 could increase government expenditure by NT$103.25 billion, potentially impacting budgets for other social welfare programs like the old-age farmer's allowance. The Ministry of Finance echoed these concerns, highlighting the substantial fiscal burden that higher pension levels would impose on the government's finances. Due to these substantial differences in proposed benefit levels and the associated financial implications, the committee has decided to reserve judgment on these specific articles for further discussion.