Taiwan launches incentive to encourage middle-age reemployment

Taipei, Feb. 17 (CNA) A new incentive program will offer retired or idle middle-age individuals NT$30,000 to return to the workforce under specific conditions as part of Taiwan's ongoing efforts to increase the pool of available workers amid a tight labor market.

The Ministry of Labor (MOL) said in a statement Saturday that the new incentive, which is retroactive to Feb. 1 this year, applies to "legal retirees" aged 45 or above, or individuals aged 55 or above who are unemployed.

"Legal retirees" here refers to those who have begun to receive their retirement pensions granted by law, such as labor pensions, the MOL said.

In Taiwan, the retirement age is 65, but individuals can begin drawing pensions after having worked for 25 years or at the age of 55 if they have worked for at least 15 years.

To be eligible for the incentive, individuals must have been away from the workplace for a minimum of three months, apply for the program through public employment service agencies, get their jobs through a recommendation by an agency, and remain employed for at least 90 days, the MOL said.

Once an applicant completes 90 days in a full-time job, they are entitled to an NT$30,000 subsidy, while part-time workers who meet the criteria can get a NT$15,000 subsidy, according to the MOL.

All workers can collect the subsidy for rejoining the workplace up to two times.

The new measure, along with others in a package aimed at encouraging middle-aged individuals to reenter the workforce, are expected to benefit 60,000 people each year, the MOL said.

Taiwan is trying to increase workforce participation amid low unemployment and an increasingly tight pool of available labor as Taiwanese society ages rapidly.

According to government data from December 2023, Taiwan's labor force participation rate for individuals aged 55-59 was 61.78 percent, compared to a rate of 77.68 percent for those in the 50-54 age bracket.

By international standards, the 59.6 percent labor force participation rate for individuals aged 55-59 in Taiwan in 2022 was well below that found in the United States (73.1 percent), Japan (78 percent), and South Korea (76.4 percent), the MOL said.

The trend indicated that there is still room for more people in Taiwan aged 55 and above to join the workforce, it said.