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The Parental Leave Allowance Helps Parents Seize the Precious Moments with Their Children.

In order to encourage the working parents to spend more time with their children together and to ensure that the parental leave allowance meets the actual requirements for child-raising; an amendment was made to the Employment Insurance Act, which was implemented on January 18, 2022. In this amendment, the following regulation has been removed: “If both parents are covered by the insurance, they shall not claim the parental leave allowance at the same time.” As a result, both parents shall be entitled to claim the parental leave allowance at the same time if they are both covered by the employment insurance and meet the criteria for parental leave allowance.

According to the Employment Insurance Act, an insured person may apply for parental leave allowance from the BLI if he/she has been insured for an aggregated period of one year or more, has a child or children who have not yet reached the age of three, and has applied for parental leave without pay in accordance with the regulations set forth in the Act of Gender Equality in Employment. The parental leave allowance shall be 60% of the insured person's average monthly insurance salary six months prior to the month the person went on parental leave. For each child, the parent may, on an aggregated basis, receive a maximum of six months' allowance. Furthermore, with effect from July 1, 2021, a parental leave wage subsidy has been granted additionally, being 20% of the average monthly insurance salary of the insured who applies for the parental leave allowance. In total, the insured will receive an allowance/subsidy equaling 80% of his/her average monthly insurance salary. This helps reduce the financial concerns of the parents when raising children.

The BLI provides an example. Xiaohua and Damin just welcomed their new baby girl. They are both eligible to claim the benefits under the Employment Insurance Act. If they choose to take parental leave at the same time, they are allowed to apply for a parental leave allowance and wage subsidy up to a maximum of 12 months in total. Assuming the average monthly insurance salary is NTD36,300 for both, they will respectively receive NTD29,040 each month, or NTD348,480 in total during a maximum period of six months.

Finally, the BLI reminds that the parental leave wage subsidy, which has been additionally paid since July 1, 2021, shall be distributed along with the parental leave allowance. To simplify the administrative procedures, it is not necessary for the insured persons to file separate applications.
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Last Update:2022-06-20