Taiwan Boosts Childcare Subsidies to Support Families amidst Low Birth Rates
Enhanced Childcare Subsidies for 2023
The government of Taiwan has declared its intention to heighten childcare subsidies in the upcoming year. In an announcement by Premier Su Tseng-chang, it was revealed that the public childcare allowance would see an increase from TWD 5,500 to TWD 7,000 per month. Meanwhile, the quasi-public childcare allowance would see a rise from TWD 8,500 to TWD 13,000 per month.
The augmentation in subsidies will provide substantial support to not only low and middle-income families but also disadvantaged households and families with more than one child. This policy aims to significantly reduce the financial strain of childcare costs on these families.
Record Highs in Budget Allocation
Premier Su further disclosed during the 33rd meeting of the Executive Yuan Social Welfare Promotion Committee that the central government’s total budget for the next year has allocated over TWD 2.7 trillion in revenue and TWD 2.88 trillion in expenditure, both record highs. The social welfare budget has reached TWD 922.9 billion, marking a growth of 11.4%.
The budget allocated for strategies addressing low birth rates has grown from TWD 15 billion in 2016 to TWD 120.1 billion, and the long-term care budget from TWD 5 billion in 2016 to TWD 87.6 billion, both hitting historical highs. These increases reflect the government’s commitment to providing better social welfare and addressing the challenge of low birth rates.
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Efforts to Foster a Child-friendly Environment
As part of the government’s initiative to create a conducive environment for raising children, the child-rearing allowance was raised to TWD 5,000 in August of last year, doubling President Tsai Ing-wen’s goal. As of August this year, this allowance has been disbursed to 338,110 children under the age of two. The childcare subsidy has also been increased to TWD 8,500, with additional amounts for second and third children. Since its implementation in January this year, these measures have benefited 48,136 individuals each month, following the removal of wealth-based restrictions.
Reducing the Gap in Higher Education Fees
In addition to the increased childcare subsidies, the government will invest TWD 21.9 billion to implement a fee reduction of TWD 35,000 per year for private higher education institutions starting in February next year. This policy aims to reduce the gap between public and private tuition fees, lighten the family burden, and promote educational equality.
Preparing for a Super-Aged Society
With projections indicating that Taiwan is expected to become a super-aged society by 2030, the Executive Yuan has revised the “White Paper on the Aging Society” and approved the “Strategies for Responding to the Super-Aged Society (2022-2025)”. To facilitate these initiatives, various ministries will invest TWD 120 billion over four years. A special task group has also been set up by the committee to oversee the efforts of all agencies in this regard.
These recent policy changes and budget allocations reflect the Taiwanese government’s commitment to support families, reduce financial strain, and address demographic challenges. By enhancing social welfare and investing in education, the government aims to build a conducive environment for raising children and prepare for a future super-aged society.
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