September 1, 2025 | Taipei
The Ministry of Labor (MOL) reported on Monday that a growing number of companies are cutting back employee work hours, with most cases linked to the impact of US tariffs on Taiwanese exports.
According to the latest figures, 245 companies have shortened work hours, affecting 4,863 workers. This marks an increase of 54 companies and 929 employees compared to the Aug. 18 report.
Manufacturing Sector Hit Hardest
Huang Chi-ya (黃琦雅), head of the MOL’s Department of Standards and Equal Employment, said the manufacturing sector accounts for the majority of cases. A total of 191 manufacturers implemented shorter workweeks, involving 4,479 workers — an uptick of 45 companies and 889 workers since mid-August.
The machinery and metalworking industries were the most affected, with 156 companies reducing hours for 3,685 workers. Of this group, the machinery and equipment segment stood out, recording 92 companies and 2,445 workers on shorter schedules.
The two largest cases involved machinery and equipment firms:
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A drilling machine exporter to North America, which placed 110 employees on reduced hours.
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A machine tool maker serving both domestic and international clients, which reduced hours for 103 employees due to falling orders.
US Tariffs as Main Cause
Out of all affected firms, 118 companies with 3,055 workers cited US tariffs as the primary reason — representing 62.8% of the total cases. This reflects an increase of 45 companies and 667 workers compared to the last report.
Government Response
At present, 168 firms with 3,812 workers qualify for the MOL’s employment stabilization measures. Huang said the ministry will continue monitoring the situation, conducting company visits, and adjusting policies to mitigate the impact.
The MOL stressed that reduced work hours are not the same as unpaid leave. Salaries of full-time monthly workers must still meet the statutory minimum wage. Employers are also required to continue paying labor insurance, health insurance, and labor pension contributions throughout the period of reduced hours.
