TAIPEI (TVBS News) — Taiwan industries across the country have been greatly affected by the pandemic. Since 2020, a total of 1.59 million citizens have applied for labor relief offered by the Department of Labor, according to official data.
"When the pandemic hit in March 2020, we woke up and we suddenly didn't have a job anymore. Everyone let their emotions sit, and went on to find other jobs. Slowly, the government did what they needed to do, there were subsidies, and classes provided to help increase the competitiveness of the members," said Wu Hong-quan , chairman of the Professional Tour Guide Union of Taipei.
Although business for the tourism industry is slowly resuming, applicants are still eagerly applying for the government's annual labor insurance relief.
"NT＄100,000 is not much. If the person is short of money, they will feel that (the pressure) is heavy, but the government also needs a concept of risk. Will I be able to get it back or not. It is an emergency fund, not a fund to save the people in need," said Wu.
In 2020 and 2021, the pandemic severely impacted the daily life and careers of many. The Ministry of Labor launched a "Worker Relief Loan," and a total of 1.59 million loans were approved in two years. The Ministry of Labor announced that for the new year, a total of 200,000 slots will be available for eligible citizens to apply for loans.
The applicants will have to have paid for the labor insurance for a minimum of 15 years, have no arrears of insurance premiums, have not applied for a previous worker insurance relief, or have already fully paid it back.
However, according to experts, this short-term solution for temporary relief may lead to lasting issues.
According to Hsing Ping-long, an associate professor of the Graduate Institute of National Development at National Taiwan University, "labor insurance is a social insurance. When the government first launched social insurance, it was to provide economic security for after retirement. So, under such circumstances, we certainly hope that unless necessary, one will try not to use the money, otherwise, before everyone retires, they would have borrowed all their future funds, labor insurance, old-age benefits, and old-age annuities."
According to experts, the relief policy should be thought out more carefully, because they are only a temporary solution. If applicants are unable to repay it in the end, it will create an even bigger problem when they reach the retirement age.