The Cabinet has announced that it will limit the practice of giving out bonuses to retired teachers and civil servants on major holidays.
It had been customary for the government to give retired teachers and civil servants bonuses to mark Lunar New Year, the Dragon Boat Festival, and the Mid-Autumn Festival. However, according to the new plan, only those living on monthly payments of less than NT$25,000 (US$800) will continue to receive the bonuses.
The move, announced Thursday, is expected to affect thousands of pensioners. However, the decision will not extend to other retired public sector employees such as military personnel. The cuts are expected to save the government NT$870 million (US$28 million) every year.
The decision to cut holiday bonuses is part of the government’s effort to reform Taiwan’s deficit-ridden pension system. It is likely to further anger retired public sector employees, who say they have been unfairly blamed for the pension system’s financial problems. On Saturday, retired civil servants, teachers, and military personnel marched through Taipei in protest against what they called “defamation”.