TAIPEI, Taiwan — Labor Minister Hung Sun-han (洪申翰) raised alarms on Monday (March 17) about potential threats to the nation's worker safety net as Taiwan navigates significant fiscal reforms. Speaking with evident concern, Minister Hung detailed how recent amendments to the "Act Governing the Allocation of Government Revenues and Expenditures" (經財劃法) could undermine labor protections. The central government has redirected more than NT$370 billion (approximately US$11.85 billion) to local authorities while simultaneously reclassifying labor insurance subsidies as "non-statutory obligations" — a bureaucratic designation that reportedly jeopardizes this critical social safety mechanism.
In a wide-ranging interview with prominent journalist Clara Chou (周玉蔻) on Bao Dao Radio (寶島聯播網), Minister Hung offered reassurance about the current stability of the labor insurance fund, which reached a historic milestone last year by exceeding NT$1 trillion (approximately US$32.03 billion). "The government maintains its commitment to ensuring the fund's sustainability," Hung stated, while emphasizing ongoing initiatives to keep middle-aged and senior citizens in the workforce. These employment policies serve a dual purpose: providing income security for older workers while bolstering the labor insurance system through continued premium contributions.
Minister Hung called for measured, cross-party dialogue on fiscal policy, emphasizing that the reallocation of financial and administrative authority requires careful consideration to avoid unintended consequences for ordinary citizens. With particular concern, he pointed to potential cuts or freezes affecting family-friendly policies such as parental leave subsidies. "These programs were specifically designed to support working families," Hung explained, suggesting that budgetary constraints could undermine critical worker protections at a time when demographic challenges are already straining Taiwan's social infrastructure.
Looking ahead to potential administrative challenges, Hung acknowledged that government ministries typically address staffing shortfalls by hiring contract workers through designated business funds. However, he cautioned that continued freezes on these operational accounts could create a payroll crisis as soon as September. "This situation is deeply regrettable," the minister remarked, suggesting that affected stakeholders should begin preparing contingency plans while urging all parties to engage in productive dialogue to resolve these emerging fiscal challenges before they disrupt essential government services.
