Taipei: Premier Cho Jung-tai on Tuesday announced an expansive suite of family support initiatives, including extended parental leave and housing tax incentives for parents, as part of Taiwan's strategy to counteract its declining birth rate. This announcement was made during a Cabinet news conference, aligning with the second anniversary of President Lai Ching-te's tenure.
According to Focus Taiwan, the government plans to implement a "0-to-18 full support" policy, which encompasses childbirth, child-rearing, and education. Premier Cho revealed that the comprehensive plan is slated for Cabinet approval on May 28. The initiative aims to alleviate financial pressures on families, enhance workplace flexibility, and expand caregiving services to foster a family-friendly atmosphere.
A significant element of the proposal is the expansion of the existing parental leave system, which will now cover parents of children up to 6 years old, an increase from the current age limit of 3. To promote shared caregiving responsibilities, housing tax incentives for families and a review of marriage, maternity, and paternity leave regulations will also be introduced.
Premier Cho confirmed that President Lai has been briefed on these proposals, and the government has assessed the fiscal capacity needed to support them. The details are being finalized ahead of the Cabinet review. This announcement follows the opposition Kuomintang legislative caucus's proposal, which includes fully subsidized National Health Insurance premiums for young children and various childcare subsidies.
Cho emphasized that public policy should be evaluated based on comprehensive planning and balanced support mechanisms rather than merely on financial commitments.
Additionally, Premier Cho highlighted the administration's achievements over the past year and outlined future policy initiatives. He noted Taiwan's economic growth rate of 8.68 percent in 2025 and projected that the monthly minimum wage will exceed NT$30,000 (US$947) next year. Considerations are also underway for salary adjustments for military personnel, civil servants, and public school teachers, pending a review by the government's remuneration review committee.
To ensure long-term economic resilience, Cho has directed several government agencies to draft a bill supporting the transformation and upgrading of small and medium-sized enterprises and micro-enterprises. This initiative, supported by increased budget allocations, will build on last year's efforts that assisted over 290,000 enterprises in digital and net-zero transformations, while continuing to drive growth in Taiwan's key industries such as semiconductors and artificial intelligence.