Taiwan's civic groups back child care reform but doubt impact on low birth rate

Taipei, May 20 (CNA) Civic groups on Wednesday welcomed the government's planned expansion of parental leave policies aimed at addressing Taiwan's low birth rate, but cautioned that monthly child-rearing subsidies alone are unlikely to significantly boost fertility.

Their response came after President Lai Ching-te (賴清德) announced plans to expand maternity and paternity leave and to provide a monthly NT$5,000 (US$167) subsidy for children from birth to age 18, as part of a broader strategy to tackle Taiwan's declining birth rate.

• Lai proposes billions in subsidies for small businesses, child-rearing

Part of the subsidy would be deposited into a "future account" intended to help children build savings for university tuition and other future expenses, Lai said in a speech marking the second anniversary of his first term in office.

In a statement, the Childcare Policy Alliance said reforms such as expanded child care leave and proposed subsidies for companies to hire temporary replacement workers could help encourage employers to create more family-friendly workplaces, though the measures could face resistance from those without children.

"Without reform, overworked Taiwan will never achieve compatibility between work and parenting," the alliance said, adding that studies have repeatedly shown such compatibility is a prerequisite for raising birth rates.

At the same time, the group warned that direct cash subsidies for child rearing alone have produced limited results in other countries, citing a Polish program introduced about a decade ago, which offered similar payments until children reached adulthood.

Under that program, Poland's fertility rate rose from below 1.3 to 1.45 before falling again two years later, the group noted.

Separately, the Executive Yuan is set to review a broader "0-to-18 full support plan," Premier Cho Jung-tai (卓榮泰) said on Tuesday.

The proposed package includes expanding flexible parental leave into a broader "child care leave" system available until a child turns six, along with housing tax incentives for parents, and revisions to marriage, maternity, and paternity leave policies.

Under the current flexible parental leave system, employees with children under the age of three can apply for leave in units of days rather than months, and receive government subsidies covering 80 percent of their salary for up to 30 days per year.

The alliance also urged the government to ensure that planned reforms to maternity and paternity leave are grounded in gender equality.

It pointed to Japan and South Korea, both of which expanded paternity leave to four weeks in an effort to encourage fathers to share childcare responsibilities from the time a child is born.