NT$11.4 billion was added to next year’s budget for a provisional 5.89% increase in public-sector retiree pensions, the Executive Yuan said after a Cabinet meeting.
May CPI data drove the adjustment, with officials saying the increase is meant to keep pensions in line with inflation; the central government would cover NT$7.4 billion and local governments NT$4 billion.
The pension rise comes alongside a planned 4% pay raise for current public-sector workers, plus NT$2,000 allowance increases for professional and supervisory posts that lift cumulative raises to as much as 11.56%.
Police, firefighters and military personnel are also included in broader compensation changes, but opposition lawmakers protested after demands for a NT$30,000 monthly volunteer military allowance and richer police-firefighter benefits were left out.