Taipei unveils pioneering subsidy for childcare-related work-hour cut

Taipei, Feb. 25 (CNA) The Taipei City government is launching a pilot program to subsidize businesses that reduce daily work hours by one hour for parents of children aged 12 and below who meet eligibility requirements, ensuring no loss in pay, officials said Wednesday.

Unveiling the program at a city government meeting, Taipei Mayor Chiang Wan-an (蔣萬安) said that the first-of-its-kind initiative reflects a "clear commitment" to building a supportive culture for working families.

From March 1 through October 31, Taipei-registered businesses are eligible for a subsidy of up to NT$100,000 (US$3,192) to support the program, regardless of when or for how long the company implements reduced work hours during the trial period, Yang Pei-yu (楊倍瑜), an official with the city's Department of Labor, told CNA.

Yang said the city has allocated NT$5.5 million for the eight-month pilot program, which is expected to cover 55 companies, but added that varying wage levels make it difficult to estimate exactly how many workers will benefit.

Participating businesses must implement the policy for at least 10 days per month over a three-month period without reducing employee pay, with the city government subsidizing 80 percent of the wages for the reduced work hours -- capped at NT$15,000 per person -- according to a press release issued by the Department of Labor.

To be eligible for the program, employees must be registered Taipei residents with children aged 12 or below in the care of a licensed home-based babysitter or childcare center, or enrolled in elementary school, and must personally handle drop-offs or pickups during the one hour of reduced work time, the release stated.

The one-hour reduction can be applied either as a delayed start or an early finish to the workday, according to the release.

Chiang stressed that the program aims to strengthen workplace cohesion and talent retention through a partnership between the city and the private sector, helping companies better incorporate environmental, social and governance (ESG) and corporate social responsibility (CSR) principles into their operations.

"The program is not intended to burden businesses," Chiang said, adding he has instructed the Department of Labor to actively engage with various industries to ensure businesses understand the initiative is a long-term investment in talent.

Asked by CNA, Yang noted that the initiative targets private businesses only, excluding Taipei City government and other government agencies from the subsidy.