Taiwan’s Kuomintang (KMT)-led Legislature passed a controversial amendment granting all volunteer military personnel a flat NT$30,000 monthly allowance starting January 1, 2026 — double the current allowance. While supporters argue it’s necessary to fix recruitment shortages, critics claim it’s a political move to dodge recall elections. The Executive Yuan opposes the measure, calling it unconstitutional and fiscally irresponsible.
📌 Key Highlights
- 🎖️ Allowance Hike Approved: Monthly allowance for all ranks raised to NT$30,000.
- 🧾 No Budget Plan Provided: KMT passed the law without submitting a cost estimate.
- 💰 Estimated Fiscal Impact: DPP estimates over NT$38.6 billion/year needed.
- ⚖️ Executive Pushback: Premier’s office says it violates Constitution & Budget Law.
- 🗳️ Political Motivation Accused: Critics say move targets voter approval before recalls.
🧠 In-Depth Analysis
🎯 Why This Law Now?
The amendment couldn’t have come at a more politically charged time:
- Recruitment Numbers Falling: Taiwan’s voluntary military system has seen steady declines — from over 164,000 volunteers in 2021 to just 152,000 in 2024.
- PLA Threat Rising: China’s military intimidation and grey-zone operations continue to intensify, increasing the need for a strong, ready volunteer force.
- Political Heat on KMT: Over 30 KMT lawmakers are facing recall petitions over budget obstructionism and legislative overreach.
In this environment, a significant military benefit package is both a defense tool and a political strategy.
💼 The Policy Details
- Equal Payment for All Ranks: Generals, colonels, and junior officers will receive the same monthly allowance — NT$30,000, up from NT$13,000–15,000.
- New Flexible Allowances: Executive Yuan can issue “designated allowances” based on CPI changes or duty type.
- Indexing to Inflation: Whenever cumulative CPI reaches 3%, allowances must be adjusted — this ensures long-term fairness but raises cost uncertainty.
🧾 Fiscal Risks & Legal Problems
The Executive Yuan swiftly criticized the amendment:
- Violates Article 70 of Constitution: Legislature is not allowed to increase spending independently.
- Violates Fiscal Discipline Act: The Act prohibits unfunded mandates.
- Budget Concerns Ignored: The government estimates the policy would cost between NT$29 billion and NT$38.6 billion annually — without a clear funding source.
Executive Yuan Spokesperson Michelle Lee confirmed the Cabinet is exploring legal remedies but has not specified whether it will request a Constitutional interpretation or veto.
🧩 Political Chess
Critics, including DPP caucus whip Wu Szu-yao, allege that the bill is an electoral ploy:
“This isn’t just about supporting the military. It’s about buying votes in the face of looming recall battles.”
The law follows a string of populist-leaning proposals by the KMT, including:
- Four extra public holidays.
- A proposed NT$10,000 cash handout.
- Expansion of Labor Day to the public sector.
Such policies, though widely popular, challenge Taiwan’s efforts to maintain a balanced and fiscally disciplined budget.
🌐 Wider Context
Taiwan’s defense strategy is rapidly evolving. The government has:
- Extended mandatory service from 4 months to 1 year (starting 2024).
- Invested in asymmetric warfare capabilities, such as missiles, drones, and cyber tools.
- Increased its defense budget to a record NT$640 billion, or 2.5% of GDP.
This amendment aligns with broader military modernization — but risks being perceived as fiscally irresponsible without structural reforms to improve working conditions, career development, and morale in the armed forces.
❓FAQs
What is the new military allowance law about?
It grants all volunteer military personnel in Taiwan a flat monthly allowance of NT$30,000 from 2026, doubling current levels.
Why is this controversial?
Critics argue it bypasses legal budgetary processes and may be politically motivated amid rising KMT recall efforts.
What’s the financial cost?
Estimated at NT$29–38.6 billion per year, depending on inflation adjustments and future CPI indexing.
How does it help Taiwan’s defense?
It’s intended to retain and attract more soldiers as the country boosts military readiness in response to Chinese threats.
What happens next?
The Executive Yuan plans legal action to contest the bill’s constitutionality. It may end up in Taiwan’s Constitutional Court.
