Abstract The study aims to understand the policy development of elderly welfare subsidy. This issue was firstly proposed at end of 1991 during the election of Parliament Representatives. After 10 years development, by conducting propaganda, publishing reports and sharing experiences with local governments, the Legislative Yuan has finally established the Temporary Provision of Elderly Welfare Subsidy in May 2002 and the act is then legalized and nationalized. The related amendment has been continuing till today. Since 1991 the researcher has started the long and coherent observation; in between the history and literature analysis were applied in order to collect relevant documents. After ascertaining its historical periods and generalization, the esearch concluded that there¡¦s significant correlation between this policy development and the democratic election. As a result, simple democratic mold is taken as the theoretic foundation and the framework is then built up. The study result shows that the election plays an important role for the formation and development of elderly welfare subsidy. The mplementation guarantees certain economic safety for the silver citizens but some ¡§free-cost¡¨ measure did cause some fair and financial burden to the authority. It also gives a cognitive bias against social welfare. Yet the increasing silver citizens may cause financial burden to the government, the distribution of social welfare should then be well considered. A complete system of national pension has to be set up soon.