COVID-19: Ministries announce new wage subsidy program

COVID-19: Ministries announce new wage subsidy program

  • By Lisa Wang / Staff Reporter

A new wage subsidy program worth approximately NT$1.35 billion ($43.24 million) to ease the financial burden faced by local businesses following a 4.56% annual increase in the minimum wage must be launched, said the Ministry of Labor and the Ministry of Economic Affairs. in a statement yesterday.

The program is an extension of the wage subsidy scheme, but has a lower eligibility threshold, the ministries said.

Local businesses that report an annual drop in revenue of 10% or more due to the COVID-19 pandemic would be eligible for wage subsidies, down from a 20% threshold, they said.

Photo: Taipei Times file photo

The new program is due to take effect in January, they said.

As some industries have not yet recovered from the effects of the three-year-old pandemic, the program aims to help them overcome the difficulties and also aims to ensure the stability of the country’s labor market, the ministries said.

The program would benefit about 180,000 full-time workers and 60,000 part-time workers, according to the release.

The government would provide subsidies of NT$920 per month to full-time workers earning monthly wages below the new minimum wage, up from NT$1,000 per worker, he said.

Local businesses can also apply for a grant of NT$560 per month for part-time workers, he added.

The payments would last for a maximum of six months, he added.

In September, the Ministry of Labor increased the monthly minimum wage from NT$25,250 to NT$26,400, while the minimum hourly rate was raised to NT$176 from NT$169.

The government would use its Employment Stabilization Fund for the payroll program, he said.

Small and medium-sized enterprises are expected to benefit the most from the program as the country’s listed companies recorded a combined revenue growth of 11.75% to NT$2.89 trillion for the first three quarters of this year, a- he said, citing data from the Taiwan Stock Exchange. .

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