In the midst of the COVID-19 pandemic, the Taiwan government announced subsidy programs for impacted employees and the self-employed. While Taiwan has managed to avoid major disruption to normal life, the government nevertheless introduced measures aimed at supporting businesses and employees who have been affected by the economic downturn. So far, hospitality, transport and tourism industries remain the most affected. The number of furloughed employees has also reached an all-time high.

Reassurance Employment Plan for employees

In late March, the Taiwan government announced a Reassurance Employment Plan including subsidies for employees whose wages and working hours have been reduced due to a downturn in their employer’s business. The measures apply retrospectively from 15 January 2020. Agreements reached between employees and their employer must include both wage and hour reductions for a period of more than 30 days in order to qualify for the subsidy. Employees can apply for the subsidy at their local labor authority.

The maximum monthly subsidy amount is NT$11,000 (approx. EUR 330). Employees may receive the subsidy for up to six months. The program applies only to full and part-time employees that receive salary on a monthly basis (i.e. not employees paid by the hour). Foreign nationals working in Taiwan who meet certain criteria are also eligible for the subsidy.

Subsidy program for the self-employed

On 18 April 2020, a subsidy program for the self-employed (including independent contractors) was officially announced. The self-employed may receive NT$10,000 (approx. EUR 330) for up to three months. Eligible workers must meet the following conditions:

  • they hold Taiwan citizenship;
  • they have enrolled in the labor insurance scheme through a professional union on or before 31 March 2020;
  • their insured salary in March 2020 was NT$24,000 (approx. EUR 700) or less;
  • their taxable income in 2018 was NT$408,000 (approx. EUR 12,200) or less; and
  • they are ineligible to apply for other subsidies such as the ones offered by the Ministry of Transportation and Communications or the Ministry of Culture.

Eligible self-employed workers can submit an application to their professional union.

Comment

Many of our clients have approached us for advice on how to manage their workforces during this time. We believe that taking the time to understand the concerns of employees before any major decisions are made can go some way to reducing the pressure that many of us find ourselves under. In our experience, employees are willing to accept temporary changes in their work life, such as working from home or reduced hours, as long as this means that their job is safe. Communicating effectively and openly ahead of time can help maintain a healthy and mutually beneficial working relationship.