Taiwan extends reduced-hours wage aid through July

TAIPEI (Taiwan News) — Workers moved onto shortened schedules in nine manufacturing sectors will be able to apply for government support through the end of July, with monthly payments capped at NT$11,500 (US$367).

The Ministry of Labor said the extension is meant to cushion employees as trade-related pressures and currency swings continue to ripple through parts of the industry, affecting as many as 42,000 workers.

Eligibility hinges on duration and documentation. The shortened schedules must last at least 30 days, be implemented by agreement between employers and employees, and be recorded through local labor authorities.

The policy applies to reduced-hours arrangements that run between Feb. 1 and July 31. Qualified workers can receive a subsidy equal to 70% of the wage gap created by the shift reduction.

The industries covered range from transport-related manufacturing, such as automaking and other vehicle-equipment production, to machinery and electrical equipment production, as well as upstream materials and processing work like fabricated metal goods, plastics, and rubber. The list also includes textiles and food-and-feed production.

Under a separate “Recharge and Restart” plan, participants can receive a training allowance alongside the wage-gap payment, as long as the combined amount does not exceed what they lost from reduced hours.

The ministry offered an illustration: a worker with an insured monthly salary of NT$45,800 who drops to the minimum monthly wage of NT$29,500 would lose NT$16,300, leaving part of the gap available to be offset through training support.

The employment-stabilization measures began in March last year and were expanded in August. Since implementation, they have disbursed nearly NT$50 million.