Ministry of Labor: Mandatory Reduced Hours Without Pay Cut Difficult; Subsidies Based on Company Size Can Be Discussed
Minister of Labor Hung Shen-han stated in the Legislative Yuan that due to significant differences in work arrangements across industries, mandating reduced working hours without pay cuts for childcare is not suitable for legislation. Instead, he suggested discussing a subsidy system based on company size. This response came during cross-party legislators' inquiries about labor-related measures in the 'New Strategy for Taiwan's Population Policy,' including flexible working hours for parents and extended maternity leave.
📋 Article Processing Timeline
- 📰 Published: June 3, 2026 at 19:32
- 🔍 Collected: June 3, 2026 at 19:39 (7 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 16:32 (68h 52m after Collected)
(Central News Agency, Reporter Tseng Yi-ning, Taipei, June 3) Cross-party legislators are focusing on labor issues related to Taiwan's new population strategy. Minister of Labor Hung Shen-han stated today that because work arrangements vary greatly across different industries, mandating reduced working hours without pay cuts is not suitable for legislation. However, he noted that discussing tiered subsidies based on company size is possible.
The Social Welfare and Health Environment Committee of the Legislative Yuan reviewed amendments to the Gender Equality in Employment Act and the Employment Insurance Act, with Hung Shen-han and others present for questioning. Today's agenda only included Q&A sessions, not article-by-article review.
President Lai Ching-te and the executive team recently announced an 18-measure 'New Strategy for Taiwan's Population Policy.' These measures include extending flexible working hours or reduced hours for childcare from ages 0-3 to 12, allowing workers to reduce their daily hours by one hour without a pay cut; extending parental leave benefits so that after both parents have each claimed six months, they can each claim an additional three months, for a maximum of nine months; and extending maternity leave from eight weeks to twelve weeks. These have drawn attention from cross-party legislators.
Kuomintang legislator Wang Yu-min questioned that the 'reduced hours without pay cut' provision still requires mutual agreement between labor and management, which differs greatly from public perception. She stated that the public thought it was a right but still has to depend on the employer's discretion. She argued that Article 19 of the Gender Equality in Employment Act should be amended to make the request for reduced hours mandatory.
Wang Yu-min also pointed out that the international standard set by the ILO is 14 weeks of maternity leave, questioning why the Executive Yuan's version only proposes 12 weeks. She argued that Taiwan should align with international standards and 'not always bow to employers.'
In response, Hung Shen-han stated that the Ministry of Labor's current draft amendment indeed does not include Article 19 of the Gender Equality in Employment Act. This is because work arrangements vary greatly across industries; mandating it by law could disrupt production lines or specific industries. Therefore, the ministry prefers an incentive-based approach, with the government fully subsidizing salaries and substitute worker allowances to lower the threshold for employer consent. Regarding maternity leave, he noted that the parental leave system can serve as a supplement.
Democratic Progressive Party legislator Yang Yao questioned how the Ministry of Labor would respond if increased insurance payouts affected the current insurance premium rate.
Hung Shen-han explained that employment insurance is a social insurance and cannot have unlimited expenditures. If expenditures exceed the balanced premium rate, there are two options: raising the premium rate or injecting other financial resources.
Chen Mei-nu, Director of the Ministry of Labor's Insurance Department, pointed out that the new 6+3 parental leave provision will be managed considering the financial health of the employment insurance fund and government finances. Currently, there are no plans to adjust the premium rate.
Democratic Progressive Party legislator Li Kun-cheng expressed concern that while reduced hours allow workers to care for children, this reduction in manpower could severely impact micro-enterprises with limited staff. He urged the Ministry of Labor to implement tiered subsidies to reduce the impact on small or micro-enterprises and increase incentives.
In response, Hung Shen-han stated that the current plan applies to all enterprises, including micro-enterprises, and provides additional subsidies to companies with fewer than 200 employees to increase incentives. However, he acknowledged that a more detailed approach could be considered. (Editor: Lin Ke-lun) 1150603
The Social Welfare and Health Environment Committee of the Legislative Yuan reviewed amendments to the Gender Equality in Employment Act and the Employment Insurance Act, with Hung Shen-han and others present for questioning. Today's agenda only included Q&A sessions, not article-by-article review.
President Lai Ching-te and the executive team recently announced an 18-measure 'New Strategy for Taiwan's Population Policy.' These measures include extending flexible working hours or reduced hours for childcare from ages 0-3 to 12, allowing workers to reduce their daily hours by one hour without a pay cut; extending parental leave benefits so that after both parents have each claimed six months, they can each claim an additional three months, for a maximum of nine months; and extending maternity leave from eight weeks to twelve weeks. These have drawn attention from cross-party legislators.
Kuomintang legislator Wang Yu-min questioned that the 'reduced hours without pay cut' provision still requires mutual agreement between labor and management, which differs greatly from public perception. She stated that the public thought it was a right but still has to depend on the employer's discretion. She argued that Article 19 of the Gender Equality in Employment Act should be amended to make the request for reduced hours mandatory.
Wang Yu-min also pointed out that the international standard set by the ILO is 14 weeks of maternity leave, questioning why the Executive Yuan's version only proposes 12 weeks. She argued that Taiwan should align with international standards and 'not always bow to employers.'
In response, Hung Shen-han stated that the Ministry of Labor's current draft amendment indeed does not include Article 19 of the Gender Equality in Employment Act. This is because work arrangements vary greatly across industries; mandating it by law could disrupt production lines or specific industries. Therefore, the ministry prefers an incentive-based approach, with the government fully subsidizing salaries and substitute worker allowances to lower the threshold for employer consent. Regarding maternity leave, he noted that the parental leave system can serve as a supplement.
Democratic Progressive Party legislator Yang Yao questioned how the Ministry of Labor would respond if increased insurance payouts affected the current insurance premium rate.
Hung Shen-han explained that employment insurance is a social insurance and cannot have unlimited expenditures. If expenditures exceed the balanced premium rate, there are two options: raising the premium rate or injecting other financial resources.
Chen Mei-nu, Director of the Ministry of Labor's Insurance Department, pointed out that the new 6+3 parental leave provision will be managed considering the financial health of the employment insurance fund and government finances. Currently, there are no plans to adjust the premium rate.
Democratic Progressive Party legislator Li Kun-cheng expressed concern that while reduced hours allow workers to care for children, this reduction in manpower could severely impact micro-enterprises with limited staff. He urged the Ministry of Labor to implement tiered subsidies to reduce the impact on small or micro-enterprises and increase incentives.
In response, Hung Shen-han stated that the current plan applies to all enterprises, including micro-enterprises, and provides additional subsidies to companies with fewer than 200 employees to increase incentives. However, he acknowledged that a more detailed approach could be considered. (Editor: Lin Ke-lun) 1150603
FAQ
What is Taiwan's 'reduced hours without pay cut' policy?
It allows workers to reduce their daily working hours by one hour for childcare without a pay cut. Currently, it requires employer consent, but the government aims to promote it through subsidies.
How many weeks will Taiwan's maternity leave be extended to?
It is planned to be extended from the current 8 weeks to 12 weeks. The ILO standard is 14 weeks.
When will this policy take effect?
The article does not specify an exact implementation date. Related bills are currently being reviewed in the Legislative Yuan.