Taiwan budget omits planned military, police pay raises amid pension reform dispute

Taiwan's Executive Yuan has decided not to include proposed budget increases for military and police personnel in the upcoming central government budget. Specifically, the budget will not allocate funds for a 30,000 New Taiwan dollar raise in monthly pay for volunteer soldiers or for increasing the income replacement rate for retired police and firefighters to 80%.

This move comes amid a legal and political standoff concerning pension reforms. The legislature previously passed a law to halt the reduction of pension benefits for retired civil servants, a move the Executive Yuan and other government bodies are challenging through constitutional interpretation requests. Despite these challenges, the government has begun refunding amounts previously deducted under the pension reforms.

Government officials stated that the Executive Yuan has filed constitutional court petitions and requested provisional measures regarding the amendments to the "Military Service Administration Act" and the "Police Personnel Administration Act." The government argues these amendments violate principles of separation of powers, budgetary law, and the rule of law, creating unfair disparities and undermining the fairness of the public servant pension system.

The Executive Yuan emphasized its stance that it awaits a swift final ruling from the constitutional court. The government has pledged to proceed with budget allocations based on the court's decision. If the amendments are deemed constitutional, the budget will be adjusted accordingly; if they are found unconstitutional, the government will act in accordance with the ruling.

Regarding a legislative demand for the Executive Yuan to propose relevant amendments and protective measures for military and civil servants within six months of the budget's referral, officials clarified that the consensus reached during cross-party negotiations did not mandate the immediate inclusion of these items in the budget. The government's review report is ongoing and is expected to be submitted by the October deadline set by the legislature.