May 2026
Taiwan Ministry of Labor Issues Guidance on Calculation of Flexible Parental Leave Days and Incentive Measures for Small and Medium-Sized Enterprise Employers
Taiwan's Ministry of Labor ("MOL") has taken further steps to implement the flexible parental leave framework introduced on January 1, 2026, under which employees may take parental leave in daily increments of up to 30 cumulative days. To provide further clarity on this framework, the MOL has issued an administrative interpretation addressing the calculation of parental leave days when an employee is simultaneously caring for multiple children, and has announced incentive measures for small and medium-sized enterprise employers with fewer than 30 employees. Key points are summarized below.
I. Calculation of Flexible Parental Leave Days
Under Article 2, Paragraph 3, Subparagraph 2 of the Regulations for Implementing Unpaid Parental Leave for Raising Children (the "Regulations"), employees may apply for parental leave on a daily basis, subject to a cumulative cap of 30 days. The Regulations, however, do not address how the total number of flexible parental leave days is to be calculated when an employee is simultaneously caring for more than one child.
To address this gap, the MOL issued Official Letter No. 115014793 on March 20, 2026, clarifying that leave days should be calculated separately for each child, given that the framework is intended to enable employees to respond to short-term, urgent childcare needs and such circumstances may arise at different times for different children. By way of illustration, an employee simultaneously raising two children under the age of three may apply for up to 30 days of flexible parental leave per child, for a combined total of 60 days.
For parental leave exceeding 30 days, the existing provisions of Article 16, Paragraph 1 of the Gender Equality in Employment Act continue to govern without modification. Specifically, when an employee is simultaneously caring for two children, the total parental leave period remains subject to a combined ceiling, measured from the birth of the youngest child, not to exceed two years of care.
II. Incentive Measures for Small and Medium-Sized Enterprise Employers
To encourage employer support for flexible parental leave, the MOL has implemented the Guidelines on Incentives for Employers Supporting Parental Leave Without Pay for Raising Children in a Friendly Workplace, effective January 1, 2026. Under these Guidelines, the Bureau of Labor Insurance (“BLI”) will provide incentive payments to qualifying employers with fewer than 30 employees, calculated at NT$1,000 per employee per day of flexible parental leave taken, up to a maximum of 30 days per child.
Where an employee on parental leave is receiving a parental leave allowance under the Employment Insurance Act, or has maintained enrollment in Labor Insurance and Employment Insurance, and the employer has registered its account information in the BLI's online system, the BLI will disburse incentive payments directly to the employer. Following completion of the annual government budget review process, the BLI will verify eligibility on a quarterly basis by cross-referencing insurance premium records for the month in which the employee's parental leave commences, and disburse payments by the end of the following month.
Employers that do not qualify for direct disbursement may apply to the BLI by submitting a completed application form and a copy of the cover page of a passbook for a financial institution or post office account held in the employer's name.
In light of the foregoing, employers are advised to review and, where appropriate, update their internal work rules and leave regulations to reflect the MOL's interpretation of flexible parental leave day calculations. Employers with fewer than 30 employees are further encouraged to register with the BLI to take advantage of the available incentive measures.
I. Calculation of Flexible Parental Leave Days
Under Article 2, Paragraph 3, Subparagraph 2 of the Regulations for Implementing Unpaid Parental Leave for Raising Children (the "Regulations"), employees may apply for parental leave on a daily basis, subject to a cumulative cap of 30 days. The Regulations, however, do not address how the total number of flexible parental leave days is to be calculated when an employee is simultaneously caring for more than one child.
To address this gap, the MOL issued Official Letter No. 115014793 on March 20, 2026, clarifying that leave days should be calculated separately for each child, given that the framework is intended to enable employees to respond to short-term, urgent childcare needs and such circumstances may arise at different times for different children. By way of illustration, an employee simultaneously raising two children under the age of three may apply for up to 30 days of flexible parental leave per child, for a combined total of 60 days.
For parental leave exceeding 30 days, the existing provisions of Article 16, Paragraph 1 of the Gender Equality in Employment Act continue to govern without modification. Specifically, when an employee is simultaneously caring for two children, the total parental leave period remains subject to a combined ceiling, measured from the birth of the youngest child, not to exceed two years of care.
II. Incentive Measures for Small and Medium-Sized Enterprise Employers
To encourage employer support for flexible parental leave, the MOL has implemented the Guidelines on Incentives for Employers Supporting Parental Leave Without Pay for Raising Children in a Friendly Workplace, effective January 1, 2026. Under these Guidelines, the Bureau of Labor Insurance (“BLI”) will provide incentive payments to qualifying employers with fewer than 30 employees, calculated at NT$1,000 per employee per day of flexible parental leave taken, up to a maximum of 30 days per child.
Where an employee on parental leave is receiving a parental leave allowance under the Employment Insurance Act, or has maintained enrollment in Labor Insurance and Employment Insurance, and the employer has registered its account information in the BLI's online system, the BLI will disburse incentive payments directly to the employer. Following completion of the annual government budget review process, the BLI will verify eligibility on a quarterly basis by cross-referencing insurance premium records for the month in which the employee's parental leave commences, and disburse payments by the end of the following month.
Employers that do not qualify for direct disbursement may apply to the BLI by submitting a completed application form and a copy of the cover page of a passbook for a financial institution or post office account held in the employer's name.
In light of the foregoing, employers are advised to review and, where appropriate, update their internal work rules and leave regulations to reflect the MOL's interpretation of flexible parental leave day calculations. Employers with fewer than 30 employees are further encouraged to register with the BLI to take advantage of the available incentive measures.
