[Taiwan] New wage subsidy programme announced by ministries

Taiwan is set to launch a new wage subsidy programme to mitigate the financial burden faced by local enterprises following a 4.56 per cent annual rise in the country’s minimum wage, Taipei Times reports.

The Ministry of Labor and the Ministry of Economic Affairs made the announcement in a statement on November 23. The programme - worth about NT$1.35 billion (US$43.24 million) - is an extension of the payroll subsidy scheme, but has a lower threshold for eligibility, according to the ministries.

Local companies reporting an annual decline in revenue of 10 per cent or more due to the pandemic would be eligible for payroll subsidies. The threshold was previously 20 per cent.

The new programme will reportedly come into effect in January 2023.

As some industries have not yet recovered from the effects of the three-year-long pandemic, the programme has been created to help them navigate hardships. It also aims to ensure the stability of the nation’s labour market, the ministries’ statement said.

The programme would reportedly benefit about 180,000 full-time workers and 60,000 part-time workers.

Under it, the government would offer subsidies of NT$920 per month for full-time workers whose monthly pay is less than the new minimum wage, down from NT$1,000 per worker.

Local businesses can also apply for a subsidy of NT$560 a month for part-time workers, the ministries said. The payments would last for a maximum of six months.

In September the labour ministry increased the monthly minimum wage to NT$26,400 from NT$25,250, while the minimum hourly rate was lifted to NT$176 from NT$169.

The government would use its Employment Stabilization Fund for the payroll program, it said.

Small and medium-sized businesses are expected to benefit the most from the programme, as the nation’s listed firms have reported combined revenue growth of 11.75 per cent to NT$2.89 trillion for the first three quarters of this year, the statement said, citing Taiwan Stock Exchange data.

Taiwan is set to launch a new wage subsidy programme to mitigate the financial burden faced by local enterprises following a 4.56 per cent annual rise in the country’s minimum wage, Taipei Times reports.

The Ministry of Labor and the Ministry of Economic Affairs made the announcement in a statement on November 23. The programme - worth about NT$1.35 billion (US$43.24 million) - is an extension of the payroll subsidy scheme, but has a lower threshold for eligibility, according to the ministries.

Local companies reporting an annual decline in revenue of 10 per cent or more due to the pandemic would be eligible for payroll subsidies. The threshold was previously 20 per cent.

The new programme will reportedly come into effect in January 2023.

As some industries have not yet recovered from the effects of the three-year-long pandemic, the programme has been created to help them navigate hardships. It also aims to ensure the stability of the nation’s labour market, the ministries’ statement said.

The programme would reportedly benefit about 180,000 full-time workers and 60,000 part-time workers.

Under it, the government would offer subsidies of NT$920 per month for full-time workers whose monthly pay is less than the new minimum wage, down from NT$1,000 per worker.

Local businesses can also apply for a subsidy of NT$560 a month for part-time workers, the ministries said. The payments would last for a maximum of six months.

In September the labour ministry increased the monthly minimum wage to NT$26,400 from NT$25,250, while the minimum hourly rate was lifted to NT$176 from NT$169.

The government would use its Employment Stabilization Fund for the payroll program, it said.

Small and medium-sized businesses are expected to benefit the most from the programme, as the nation’s listed firms have reported combined revenue growth of 11.75 per cent to NT$2.89 trillion for the first three quarters of this year, the statement said, citing Taiwan Stock Exchange data.