In response to increasing military pressure from China and internal challenges in military personnel retention, Taiwan has announced significant pay raises for its volunteer service members. This move aims to address manpower shortages and bolster the island’s defense capabilities. The decision comes amid a backdrop of heightened cross-strait tensions and Taiwan’s efforts to modernize its military forces.
China considers Taiwan a breakaway province and has not ruled out the use of force to achieve reunification. Over the past year, Beijing has intensified its military activities around Taiwan, including frequent deployments of fighter jets and warships. These actions have raised concerns about the island’s security and underscored the need for a robust defense strategy.
On March 21, 2025, President Lai Ching-te announced the pay increases during a visit to a military camp in Taipei. Starting April 1, volunteer enlistees will receive an additional monthly allowance of up to NT$5,000 (approximately US$151), supplementing the current NT$10,000 allowance. Members of combat forces will see their allowances more than double, reaching up to NT$12,000 per month.
President Lai emphasized the government’s commitment to supporting military personnel, stating, “Let us protect the country together and ensure our daily life of freedom and democracy.” The Ministry of National Defense (MND) echoed this sentiment, highlighting that the salary adjustments are both a short-term solution to manpower shortages and a long-term investment in talent retention and operational efficiency.
The pay raises are part of a broader strategy to tackle declining retention rates within Taiwan’s military. Reports indicate a significant increase in early contract terminations among volunteer military personnel. In 2024, 1,565 service members opted out of their contracts early, a sharp rise from 401 in 2020. Consequently, the number of serving volunteer military personnel stood at 152,885 as of June 2024, the lowest since 2018.
The MND has acknowledged these challenges and is actively seeking solutions. Major General Kao Chih-hsiung from the MND’s Department of Resource Planning noted that the ministry had proposed salary increases for voluntary military personnel, pending review by the Cabinet. The aim is to stabilize defense capabilities, encourage long-term service, and attract new recruits.
Taiwan’s government plans to increase defense spending to a record NT$647 billion in 2025, accounting for approximately 2.5% of the nation’s GDP. However, the opposition-controlled parliament has frozen or cut funding for certain defense initiatives, including a 50% freeze on spending for a submarine program and a drone industry park. President Lai has urged opposition parties to reconsider these decisions and fully support the military’s needs.
The pay raises and increased defense spending come amid escalating tensions with China. In recent months, China has conducted extensive air and sea drills near Taiwan, involving a significant number of military assets. These exercises are viewed as direct responses to statements and actions by the United States and Taiwan, further straining cross-strait relations.
Taiwan’s defense ministry has closely monitored these developments, deploying its own aircraft, naval vessels, and land-based missile systems in response. Defense Minister Wellington Koo characterized China’s actions as those of a “troublemaker” endangering regional peace.
In addition to addressing manpower issues, Taiwan is actively modernizing its military capabilities. The island has ordered new missiles, aircraft, and other weaponry from the United States and is investing in domestic defense industries. These efforts aim to enhance Taiwan’s deterrence capabilities and ensure readiness against potential threats.
Taiwan’s decision to increase military pay reflects a comprehensive approach to strengthening its defense posture amid internal and external challenges. By addressing personnel retention and investing in modernization, Taiwan seeks to ensure its security and maintain stability in the region.
