Family Support Measures Won't Be Fully Extended to All Foreigners: MOL

Why It Matters

The policy aims to ease Taiwan’s record‑low fertility by improving work‑life balance, while imposing new cost and compliance pressures on employers, especially SMEs, and highlighting gaps in protection for certain foreign caregivers.

Key Takeaways

• Marriage leave extended to 14 days, maternity to 12 weeks.
• Foreign construction and manufacturing workers gain benefits; domestic caregivers excluded.
• Government funds >NT$20 billion ($637 million) for subsidies and wage coverage.
• Parental leave eligibility expanded to children up to 6 years old.
• SMEs receive subsidies for replacement workers during childcare leave.

Pulse Analysis

Taiwan’s demographic head‑wind has sharpened policy focus on birth‑rate incentives. With the total fertility rate sinking to 0.69 in 2025, the government is pairing cash subsidies with expanded leave to make parenthood financially viable. By aligning Taiwan’s family‑support framework with more generous standards in neighboring economies, officials hope to stem the outflow of young talent and encourage higher household formation, a strategy echoed across East Asia’s aging societies.

The new labor package introduces concrete changes: marriage leave jumps from eight to 14 days, maternity leave from eight to 12 weeks, and paternity leave doubles to 14 days. Crucially, the reforms extend to foreign employees covered by the Labor Standards Act, granting construction and manufacturing workers the same entitlements as locals. However, migrant domestic workers and live‑in caregivers remain outside the act’s scope, leaving a protection gap that labor unions have flagged. Funding—over NT$20 billion—will be split between the central budget and the Employment Insurance Fund, with the government covering wages for the added leave days, easing the immediate payroll impact for firms.

For businesses, especially small and medium‑sized enterprises, the measures bring both relief and responsibility. Subsidies for hiring replacement staff or providing duty‑substitution allowances aim to offset productivity losses during parental leave. Yet companies must adjust payroll systems and reporting processes ahead of the Jan. 1, 2027 rollout, a timeline that aligns with annual budgeting cycles. If the policy succeeds, Taiwan could see a modest rise in birth rates and a more inclusive labor market, while the exclusion of certain foreign caregivers may prompt future legislative revisions to close the equity gap.