Taiwan Increases Annual Remittance Cap for Migrant Workers to NT$500,000
In a move aimed at supporting migrant workers and boosting the local economy, Taiwan has raised the annual remittance limit for foreign workers from NT$400,000 to NT$500,000 (approximately US$15,370). The amendment to the “Regulations Governing Small Amount Remittance Services for Foreign Migrant Workers” was officially completed by the Financial Supervisory Commission (FSC) on Tuesday and could take effect as soon as this week.
This regulatory update will benefit an estimated 810,000 migrant workers in Taiwan, who send money home to support their families. The FSC introduced the changes in response to the growing earnings of migrant workers and their increasing remittance needs.
Why the Change in Remittance Limits?
The increase in the remittance cap reflects Taiwan’s commitment to improving the financial well-being of migrant workers, who play a significant role in the island’s labor force, particularly in sectors like construction, manufacturing, and domestic services. This policy is also expected to make remittance services more accessible to a larger number of migrant workers, particularly those who have experienced increased earnings over the past few years.
The revised cap is expected to help ease the financial burden on workers and their families by allowing them to send more money back home. This will also contribute to the broader economic benefits, strengthening the financial ties between Taiwan and the countries where the migrant workers come from.
Key Provisions of the New Regulations
| Provision | Details |
|---|---|
| New Remittance Limit | The annual remittance limit for foreign workers has been increased to NT$500,000 (approx. US$15,370). |
| Targeted Beneficiaries | Approximately 810,000 migrant workers in Taiwan will benefit from the revised policy. |
| Institutions Authorized | Four institutions have been authorized to process small remittances: Digital Idea Multi-Media Co., Ltd., Welldone Company, Eastern Union Interactive Corp., and May-God Human Resource. |
| Requirements for Remittance Institutions | Institutions handling migrant worker remittances must have paid-in capital or operating funds of at least NT$100 million. |
| Experienced Personnel Requirement | Companies must employ individuals with backgrounds in banking, electronic payments, financial technology, or employment services. |
Impact of the Change
The move is expected to streamline the remittance process, making it more efficient and user-friendly for foreign workers. The Financial Supervisory Commission has ensured that institutions involved in remittance services maintain high standards and accountability. The increased limit not only reflects a growing recognition of migrant workers’ contributions to Taiwan but also ensures the remittance industry operates with proper oversight.
In addition to the increase in the remittance cap, the updated regulations will strengthen the financial industry’s ability to serve migrant workers and ensure that services remain accessible and secure.
Enhanced Oversight for Remittance Services
The FSC has also introduced stricter rules for remittance service providers. To ensure that these institutions are adequately equipped to handle the increased volume of transactions, the updated provisions stipulate that institutions involved in migrant worker remittances must have a minimum capital requirement of NT$100 million, an increase from previous standards. This will help ensure the financial stability of remittance service providers.
Furthermore, the new regulations require that personnel working for these institutions have relevant experience in fields such as banking, electronic payments, or financial technology. This is aimed at improving the professionalism and efficiency of services for migrant workers.
FAQs on the New Remittance Regulations
1. Why has Taiwan increased the remittance limit for migrant workers?
Taiwan increased the remittance limit to support the growing financial needs of migrant workers, whose earnings have increased over time. This policy aims to benefit both the workers and their families back home by allowing them to send more money.
2. How much can migrant workers now send back home annually?
The annual remittance limit for migrant workers has been raised from NT$400,000 to NT$500,000 (approximately US$15,370).
3. Who will benefit from these new regulations?
Approximately 810,000 migrant workers in Taiwan who use remittance services will benefit from the new cap.
4. Which institutions can process migrant worker remittances under the new regulations?
The FSC has approved four institutions to process migrant worker remittances: Digital Idea Multi-Media Co., Welldone Company, Eastern Union Interactive Corp., and May-God Human Resource.
5. What new requirements are there for remittance institutions?
Institutions handling migrant worker remittances must now have a minimum paid-in capital of NT$100 million and hire experienced personnel in areas such as banking, electronic payments, and financial technology.
Conclusion
Taiwan’s decision to increase the annual remittance cap for migrant workers is a positive step forward in supporting this crucial segment of the workforce. With stricter oversight and an increase in the remittance limit, the government is helping migrant workers send more money back home while ensuring the integrity and efficiency of the financial system that supports them.
