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flag Taiwan’s legislature reversed civil servant and teacher pension cuts, restoring pre-2018 benefits and limiting future increases to inflation above 5%.

flag Taiwan's Legislative Yuan passed amendments on December 12, 2025, reversing planned pension cuts for civil servants and public school teachers, restoring income replacement ratios to 2023 levels—39% to 71.5% based on service years. flag The changes, backed by the KMT and Taiwan People’s Party, halt reductions set by a 2018 fiscal reform, prevent pensions from falling below 69% for 35-year veterans, and eliminate automatic cuts during deflation. flag Pensions will now only increase if inflation exceeds 5%. flag The move, awaiting President William Lai’s approval, faces criticism from DPP lawmakers who warn it threatens pension fund sustainability, potentially depleting funds by 2042 for teachers and 2045 for civil servants. flag The government plans legal challenges to protect long-term fund stability.

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