Chinese Nationalist Party (KMT) lawmakers yesterday proposed amendments to the Employment Insurance Act (就業保險法) to codify the 80 percent parental leave allowance into law and provide full-pay subsidies for disadvantaged families that would be funded in part by the government.
The draft changes aim to address Taiwan’s demographic crisis, KMT legislators Wu Tsung-hsien (吳宗憲), Huang Chien-pin (黃建賓) and Niu Hsu-ting (牛煦庭) told a news conference at the Legislative Yuan in Taipei.
The nation’s birthrate hit a historic low last month, with only 6,523 births recorded — the first time monthly births have dropped below 7,000, Wu said.
Photo: CNA
Many young families are willing to have children, but are deterred by mortgage payments, rent, childcare costs and workplace pressures, he said.
They are reluctant to take parental leave or risk income disruption, he said, adding that the government should provide stable support for families willing to raise children.
While many believe parental leave offers 80 percent of their salary, the act guarantees only a 60 percent subsidy, with the additional 20 percent provided through the government’s subsidy guidelines, Wu said.
The amendments do not seek to increase the burden on the employment insurance fund, but to formalize the additional 20 percent subsidy as a statutory obligation funded by the government, he said.
As of October last year, the labor force participation rate among married women aged 15 to 49 in Taiwan was 78.63 percent, indicating that most households rely on dual incomes, Huang said.
For many families, taking leave not only reduces income, but also creates staffing pressures for small and medium-sized enterprises, he said.
The Ministry of Labor should introduce comprehensive subsidies for replacement labor to ease the burden on businesses, he said.
As parental leave has been made available on a daily basis, fathers should participate more in childcare, Niu said.
In January and last month, 1,237 men applied for parental leave, accounting for 44.3 percent of applicants, significantly higher than last year’s 27.8 percent, he said.
The proposed amendments would require the government to annually allocate a recurring budget to ensure consistent subsidies, allowing parents to take leave with peace of mind, he said.
The bill would also allow disadvantaged groups — including low and middle-income households, single parent families and disabled people — to apply for subsidies of up to full salary, he said.
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