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🇹🇼 Taiwan /Economy & Trade

Taiwan Ministry of Labor launches childcare support, tax breaks for businesses

From Liberty Times · () Chinese

Translated from Chinese and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified New plan
  • Taiwan's Ministry of Labor will launch new incentives to support employees with childcare needs starting in 2026.
  • The initiatives include a daily subsidy for job-replacement staff and training cost support for companies hiring temporary workers.
  • Businesses that build childcare facilities will receive a 200% tax deduction on construction costs.

Taiwan's Ministry of Labor is rolling out a series of incentives aimed at easing the burden of childcare for employees and encouraging businesses to create more family-friendly workplaces. The new measures, set to begin in 2026, are part of President Lai Ching-te's "Taiwan Population Policy New Strategy."

Key among the initiatives is the "job replacement allowance," which will provide a daily subsidy of NT$800 for companies hiring temporary staff to cover for employees taking parental leave or reduced working hours. This aims to ensure that colleagues covering for absent workers receive compensation and that businesses have resources to hire and train replacement personnel.

We are launching the 'job replacement allowance' and employer recruitment and training costs for new 'replacement personnel.'

· Hung Sen-hanMinister of Labor Hung Sen-han announced the new measures aimed at supporting employees with childcare needs.

For smaller businesses with fewer than 200 employees, the ministry will also subsidize the recruitment and training costs for long-term replacement workers needed due to maternity or childcare leave. This subsidy will amount to NT$20,000 per person.

Employees with children under 12 can reduce their working hours by one hour per day, with the government covering the full wage.

· Hung Sen-hanMinister of Labor Hung Sen-han explained the 'flexible reduced working hours' initiative.

Additionally, the ministry is encouraging "flexible reduced working hours" for employees with children under 12. With mutual agreement between employer and employee, workers can reduce their daily hours by one hour, with the government covering the full wage for that hour. This allows employees to leave work an hour earlier without a pay cut.

To further support families, companies that establish childcare facilities will receive significant tax benefits. The Ministry of Labor, in collaboration with the Ministry of Finance, is offering a 200% tax deduction on construction costs for new facilities. This aims to substantially increase the willingness of businesses to invest in on-site childcare services. The ministry has also enhanced its childcare support policies, including subsidies for employee childcare and relaxed regulations for small and medium-sized enterprises to set up childcare institutions.

Companies that build childcare facilities can deduct 200% of the construction costs from their corporate income tax.

· Hung Sen-hanMinister of Labor Hung Sen-han highlighted the significant tax benefits for businesses establishing childcare facilities.
About this summary

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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