Taiwan rolls out 18-measure plan to tackle one of the world's lowest birthrates

Taiwan unveiled a sweeping package of pro-natalist measures on May 27, including a universal monthly allowance for every child from birth through age 18, as President Lai Ching-te (賴清德) placed the country's deepening demographic crisis at the center of his domestic agenda.

The policy

The plan introduces 18 measures across three major stages — childbirth, childrearing, and education — built on four key strategies: increased subsidies, lighter household loads, greater workplace flexibility, and expanded care. It spans five priority areas: a secure start for families, strengthened childcare, greater investment in education, family-friendly workplaces, and eased housing pressures. 

The overarching goal is to shift the burden of childcare away from individual families and toward a model shared by the government, society, and businesses.

A centerpiece of the new plan is the "age-18 pledge," a universal monthly allowance of NT$5,000 (about US$160) per child from birth through age 18. The allowance will be layered on top of the existing "0–6 National Childcare 2.0" program, allowing families to receive both simultaneously. Affordable childcare capacity will also be expanded.

To bring businesses into the effort, the government will offer subsidies of up to NT$5 million for companies that build new childcare facilities, extend a 200 percent tax deduction on corporate childcare expenses, and incorporate family-friendly workplace measures into ESG evaluation metrics for publicly listed companies.

The plan also includes across-the-board extensions to marriage leave, maternity leave, and paternity leave. 

Maternity leave will be lengthened from the current eight weeks to 12 weeks, with the four additional weeks offered on a fully flexible basis to accommodate mothers' individual recovery and career needs. 

Parental leave will be upgraded from "infant care leave" to a broader "childcare leave," with the eligible age raised from three to six years old and the maximum flexible single-day leave doubled from 30 to 60 days. A new "6+3 parental leave allowance" program will provide an additional three months of benefits to both parents who each take a full six months of unpaid parental leave, with the monthly payout cap raised to over NT$40,000.

Further measures include a one-percentage-point cut in student loan interest rates, tax relief tied to marriage and childbearing, expanded supply of housing for newlywed and young-child households, increased rental subsidies, and higher tax exemptions for dependent underage children.

Taiwan's declining birthrate and aging population

Taiwan's demographic structure has been shifting significantly in recent years, with a falling birthrate and rapid population aging emerging as pressing national challenges.

According to the Ministry of the Interior (MOI), as of April 2026, Taiwan has recorded 28 consecutive months of population decline, with total population falling to approximately 23.26 million.

According to the National Development Council (NDC), births fell below deaths in 2020, tipping natural population growth into negative territory. At the same time, the proportion of the population aged 65 and older surpassed 20 percent in 2025, officially making Taiwan a "super-aged society."

Taiwan's total fertility rate — the average number of children a woman is expected to bear over her lifetime — has fallen to just 0.695 as of 2025, according to MOI data, far below the global average of approximately 2.2. 

The figure is the lowest in the region, falling below South Korea at 0.7, China and Singapore at 1.0, and Japan at 1.1.

Japan 

Countries across the region are grappling with similar demographic headwinds and have deployed cash incentives and subsidies as primary tools.

Japan has expanded its child allowance program, with families receiving 15,000 yen (about US$94) per month for children under three and 10,000 yen per month for children from age three through high school graduation, with additional top-ups for larger families. 

The Japanese government has also promoted paternity leave, remote work, and flexible working hours, with some local governments piloting four-day workweeks to help parents balance employment and childcare.

South Korea

South Korea has continued rolling out multi-tiered incentives. Under current policy, families with a first child receive a one-time payment of 2 million won (about US$ 1,320), and 3 million won for each additional child. 

Some local governments offer marriage and wedding subsidies of up to approximately 20 million won. 

Newlywed households and families with newborns are given priority access to public housing and housing subsidies, and parental leave of up to three years is available. 

Local governments have also organized government-sponsored matchmaking events and are gradually working to reduce the social stigma attached to out-of-wedlock births.

Singapore

Singapore operates the Baby Bonus Scheme, combining direct cash grants with government contributions to a Child Development Account (CDA). 

Under rules introduced from 2025 onward, families with a first child receive support worth approximately 20,000 Singapore dollars (about US$15,624), rising to approximately SGD 23,000 for a second child and up to 38,000 Singapore dollars or more for a third child or beyond — encompassing cash grants, CDA top-ups, government co-matching, MediSave contributions, and annual LifeSG credits. 

The government also provides paid maternity and paternity leave, shared parental leave, priority access to Build-to-Order public housing for families with children, and infant and childcare subsidies to encourage young families to have children.