Taipei: President Lai Ching-te on Wednesday unveiled a comprehensive set of measures aimed at tackling Taiwan's declining birth rate, which has become one of the lowest in the world. The proposals include extending maternity and paternity leave as well as introducing a monthly subsidy for children aged 17 and under.
According to Focus Taiwan, the Ministry of the Interior reported that Taiwan's birth rate had fallen to 0.69 last year. Central to President Lai's plan is a monthly NT$5,000 "growth subsidy" for each child aged 17 and under. For families with children aged 5 and under, the subsidy will be provided in cash. For children aged 6 to 17, half of the monthly subsidy will be deposited into a savings account, managed by professional financial institutions commissioned by the government. These accounts are designed to guarantee at least the interest rate of a two-year fixed-term deposit.
President Lai emphasized that when the account holder turns 18, they will receive the accumulated funds as a "coming-of-age gift" from the nation. Cabinet Secretary-General Xavier Chang noted that each account could hold at least NT$360,000 by the end of the subsidy program, which recipients could then use for university tuition or to start a business.
The proposed subsidy will be an addition to Taiwan's existing "child rearing subsidy," which provides NT$5,000 for the first child, NT$6,000 for the second, and NT$7,000 for the third child and beyond, from ages 0 through 4. Another significant proposal is to increase financial assistance for assisted reproduction. Under the new plan, recipients under 40 could receive NT$150,000 for their first three IVF treatments and NT$60,000 for the fourth to sixth attempts. Those aged 40 to 44 would be eligible for up to three NT$130,000 subsidies.
Currently, recipients up to age 39 can receive up to six subsidies, with varying amounts for each treatment. The proposed measures are projected to cost approximately NT$380 billion annually, equal to about 1 percent of Taiwan's GDP, mirroring the expenditure level South Korea uses to elevate its birth rate. The spending plans will require approval from Taiwan's opposition-controlled Legislative Yuan.
President Lai also proposed "parent-friendly" workplace policies, such as extending maternity leave from eight to 12 weeks and paternity leave from seven to 14 days. Additionally, parents who have each taken the maximum six-month parental leave will be eligible for an extra three months each. Premier Cho Jung-tai explained that this initiative aims to encourage shared parental leave, ensuring that childcare responsibilities do not fall solely on mothers.