Taipei Offers Reduced Work Hours for Parents with Young Children | 80% Wage Subsidy

by Emma Walker – News Editor

Taipei City Mayor Chiang Wan-an announced today a first-of-its-kind initiative to support working parents, offering a reduction in work hours coupled with wage subsidies. Starting March 1st, 2026, parents with children aged 12 and under will be eligible to reduce their daily work hours by one hour without a corresponding reduction in pay, with the city government covering 80% of the associated wage costs for participating businesses.

The policy, unveiled during a Taipei City Government municipal meeting, aims to address the challenges faced by working parents in balancing career and family responsibilities. Chiang Wan-an stated the goal is to empower parents to “regain control of their lives” and flexibly manage their work and childcare commitments, according to reports from TVBS News and the Central News Agency.

The program draws inspiration from a pilot program in Gwangju, South Korea, which demonstrated positive outcomes in improving work-life balance for parents, Chiang Wan-an explained. The Taipei City government’s Labor Bureau proactively researched the Korean model before adapting it to suit local conditions. The city will provide subsidies to companies that allow eligible employees to shorten their workday by one hour.

Three key principles underpin the initiative, Chiang Wan-an emphasized: learning from international best practices, supporting parents, and fostering collaboration with businesses. The policy is designed not to burden companies but to help them retain talent and enhance workplace morale, while also fulfilling corporate social responsibility, according to the mayor.

The city government anticipates that the program will benefit a significant number of families in Taipei. The initiative will initially apply to private sector businesses. The Taipei City Labor Bureau will actively engage with industries to explain the program and encourage participation, viewing it as a long-term investment in talent. The city has allocated a budget to cover the subsidies, with a maximum subsidy of NT$100,000 per company, as reported by the Central News Agency.

New Taipei City, a neighboring municipality, is taking a more cautious approach. A spokesperson for the New Taipei City government, Lo Wan-ting, indicated that the city will continue to evaluate various options and measures to improve the childcare environment, but has not announced any immediate plans to follow suit with a similar wage subsidy program. New Taipei City currently focuses on expanding public childcare capacity, citing its large labor population and the need for careful consideration of any new policy’s impact, according to NOWnews.

The Taipei City government has scheduled further discussions to clarify the application process for businesses seeking subsidies and to address potential logistical challenges. The Labor Bureau will be responsible for processing applications and ensuring compliance with the program’s guidelines.

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