October 2025
Taiwan’s Ministry of Labor Amends Subsidy Program for Reduced-Hours Labors in Response to U.S. Reciprocal Tariffs
To mitigate the impact of international trade developments on industries and the job market, Taiwan’s Ministry of Labor (hereinafter “MOL”) enacted the Program for the Furloughed Laborer Training in Response to Reciprocal Tariff Policy of the U.S.A. on July 4, 2025, pursuant to the Regulations on Supporting Stable Employment of Workers in Response to International Developments. The program provides subsidies to employers who conduct training courses for employees during periods of reduced working hours, and wage allowances for employees participating in such courses. Subsequently, on October 7, 2025, the MOL amended the program and renamed it the Recharge and Restart Program in Response to International Developments (hereinafter the “Program”), easing subsidy eligibility criteria for both employers and employees. The amendment retroactively took effect on August 1, 2025. The main points of the Program are summarized below:
I. Employer Requirements: Statutory Labor Insurance, Negotiation of Reduced Working Hours, and Continued Employment
To qualify for subsidies under the Program for conducting vocational training during periods of reduced working hours, employers must meet the following requirements (Article 5 of the Program):
1. Employers must insure their employees under labor, employment, or labor occupational accident insurance in accordance with the law.
2. Employers must have lawfully reached an agreement with employees to reduce working hours and completed the required notification procedures pursuant to the Directions for Negotiation Between Employers and Employees on the Reduction of Working Hours in Response to Economic Downturns (hereinafter the “Directions”). In particular, employers must comply with the following key requirements under the Directions: (1) Refer to the MOL’s sample Agreement on the Reduction of Working Hours Between Employers and Employees and obtain written consent from employees (Articles 3 and 9 of the Directions); (2) The reduction period shall, in principle, not exceed three months. Any extension requires renewed employee consent (Article 8 of the Directions); and (3) Employers must duly notify the local labor authority and the relevant branch office of the Workforce Development Agency after implementing reduced working hours (Article 10 of the Directions).
3. Employers must submit a written undertaking to (a) continue employing workers who participate in the training, (b) maintain at least 90% of their overall workforce during the training period, and (c) ensure that monthly wages for full-time employees paid on a monthly basis are not lower than the statutory minimum wages.
II. Employers May Apply for Subsidies Upon Approval of Training Courses
According to the Program, employers who plan and conduct vocational training courses during periods of reduced working hours may apply to the MOL for subsidies of up to NT$3.5 million, subject to approval. (Articles 7 and 9 of the Program). Under the Program as amended on October 7, 2025, the minimum class-size requirement of five participants was removed, allowing businesses greater flexibility in designing training content and scale, thereby better accommodating the needs of small and medium-sized enterprises.
III. Employees Participating in Training May Apply for Training Allowances
During periods of reduced working hours, employees who attend (i) on-the-job training courses organized or commissioned by the MOL’s Workforce Development Agency, (ii) vocational training courses conducted by employers under the Program, or (iii) other specially approved training programs, are eligible to apply for training allowances based on the number of training hours attended.
Regardless of whether the employee is full-time or part-time, the allowance is calculated based on the wage differential before and after the reduction in working hours, up to the hourly minimum wage for each training hour. The monthly allowance cap is NT$17,210. However, for full-time employees whose average insured monthly wages under labor, employment, or labor occupational accident insurance are below NT$30,300, the monthly allowance cap is NT$2,280 (Article 8 of the Program).
IV. Conclusion
The amendment to the Program, effective October 7, 2025, further eases the subsidy/allowance requirements, helping employers maintain their workforce, strengthen competitiveness, and reduce personnel costs. Employers seeking to benefit from the Program must ensure compliance with all applicable requirements, including obtaining employees’ written consent prior to implementing reduced working hours, limiting such arrangements to three months unless extended with consent, completing the necessary notifications to authorities, and maintaining at least 90% of their total workforce during the training period.
I. Employer Requirements: Statutory Labor Insurance, Negotiation of Reduced Working Hours, and Continued Employment
To qualify for subsidies under the Program for conducting vocational training during periods of reduced working hours, employers must meet the following requirements (Article 5 of the Program):
1. Employers must insure their employees under labor, employment, or labor occupational accident insurance in accordance with the law.
2. Employers must have lawfully reached an agreement with employees to reduce working hours and completed the required notification procedures pursuant to the Directions for Negotiation Between Employers and Employees on the Reduction of Working Hours in Response to Economic Downturns (hereinafter the “Directions”). In particular, employers must comply with the following key requirements under the Directions: (1) Refer to the MOL’s sample Agreement on the Reduction of Working Hours Between Employers and Employees and obtain written consent from employees (Articles 3 and 9 of the Directions); (2) The reduction period shall, in principle, not exceed three months. Any extension requires renewed employee consent (Article 8 of the Directions); and (3) Employers must duly notify the local labor authority and the relevant branch office of the Workforce Development Agency after implementing reduced working hours (Article 10 of the Directions).
3. Employers must submit a written undertaking to (a) continue employing workers who participate in the training, (b) maintain at least 90% of their overall workforce during the training period, and (c) ensure that monthly wages for full-time employees paid on a monthly basis are not lower than the statutory minimum wages.
II. Employers May Apply for Subsidies Upon Approval of Training Courses
According to the Program, employers who plan and conduct vocational training courses during periods of reduced working hours may apply to the MOL for subsidies of up to NT$3.5 million, subject to approval. (Articles 7 and 9 of the Program). Under the Program as amended on October 7, 2025, the minimum class-size requirement of five participants was removed, allowing businesses greater flexibility in designing training content and scale, thereby better accommodating the needs of small and medium-sized enterprises.
III. Employees Participating in Training May Apply for Training Allowances
During periods of reduced working hours, employees who attend (i) on-the-job training courses organized or commissioned by the MOL’s Workforce Development Agency, (ii) vocational training courses conducted by employers under the Program, or (iii) other specially approved training programs, are eligible to apply for training allowances based on the number of training hours attended.
Regardless of whether the employee is full-time or part-time, the allowance is calculated based on the wage differential before and after the reduction in working hours, up to the hourly minimum wage for each training hour. The monthly allowance cap is NT$17,210. However, for full-time employees whose average insured monthly wages under labor, employment, or labor occupational accident insurance are below NT$30,300, the monthly allowance cap is NT$2,280 (Article 8 of the Program).
IV. Conclusion
The amendment to the Program, effective October 7, 2025, further eases the subsidy/allowance requirements, helping employers maintain their workforce, strengthen competitiveness, and reduce personnel costs. Employers seeking to benefit from the Program must ensure compliance with all applicable requirements, including obtaining employees’ written consent prior to implementing reduced working hours, limiting such arrangements to three months unless extended with consent, completing the necessary notifications to authorities, and maintaining at least 90% of their total workforce during the training period.
