Taiwan Plans NT$5,000 Monthly Growth Allowance; Cash for Under 6, Half-Savings for 6-18

(CNA, Taipei, May 20, by reporter Chen Chieh-ling) In response to President Lai Ching-te's proposal for a monthly NT$5,000 growth allowance for everyone aged 0 to 18, the Ministry of Health and Welfare (MOHW) stated that with the existing childcare allowance of NT$5,000 for ages 0 to 2, an additional NT$5,000 cash growth allowance will bring the total to at least NT$10,000. For ages 6 to 18, half will be saved in a future fund and half will be disbursed as cash. The preliminary plan is to adopt a universal, non-means-tested approach. President Lai announced in his second-anniversary-of-governance speech today that, to address the low birth rate, a growth allowance of NT$5,000 per person per month for ages 0 to 18 will be provided. The annual budget is estimated at around NT$200 billion to reduce the burden on families raising children. Taiwan has had childcare allowances and daycare subsidies for ages 0 to 6 since 2012. The policy decision is to expand this to a growth allowance for up to age 18. MOHW Deputy Minister Lu Chien-te explained to the media this evening that the initial plan will be universal and non-means-tested, citing this as an international trend, with Sweden providing allowances for ages 6 to 16, and Germany and Japan for ages 0 to 18. Chou Tao-chun, Director-General of the MOHW's Social and Family Affairs Administration, said that once the 0-18 growth allowance is implemented, it will be issued separately and without means-testing, in addition to the current childcare allowances and daycare subsidies. In other words, childcare allowances and subsidies for ages 0 to 6 will continue to be received, and the amounts will be stackable with the growth allowance, not mutually exclusive. The NT$5,000 growth allowance for children under 6 will, in principle, be fully disbursed in cash. Chou Tao-chun stated that for the NT$5,000 growth allowance for those aged 6 to 18, the current plan is to save half in a 'future fund' and give half as cash. This fund will serve as a nest egg, intended to help with entrepreneurship, further education, etc., after the child turns 18. 'Of course, we would rather not see this nest egg used for in-game purchases,' he said. The MOHW's Social and Family Affairs Administration also explained via a press release that it will promote related planning through inter-ministerial cooperation to establish a more stable, universal, and continuous family support system. The MOHW's childcare allowance has been non-means-tested since January 2023. Any child under 2 who has completed birth registration or initial household registration in Taiwan and is not concurrently receiving daycare subsidies or public placement is eligible. The subsidy amount is NT$5,000 per month for the first child, NT$6,000 for the second, and NT$7,000 for the third and subsequent children, provided to families who care for their children themselves or use private nannies. As for families seeking public or quasi-public daycare resources, the MOHW increased the daycare subsidy amount starting from January 2024, enhancing the public daycare subsidy.