Taiwan workers can expect pay raises between 3.81% and 4.35% under Ministry of Labor proposal set for Cabinet review in the near future.
Taiwan’s minimum monthly wage is set to increase 3.81% to NT$20,008 (US$668) in July 2015, according to the Ministry of Labor on 29 August 2014.
Under the MOL proposal, yet to be approved by the Cabinet, the hourly rate will also rise by 4.35% to NT$120. A total of 2.32 million workers are expected to benefit from the measures.
As a result of the pay raises, the government, employers and employees will incur extra charges of NT$13.2 billion in labor and health insurance premiums, among other outlays.
According to MOL Minister Chen Hsiung-wen, all relevant agencies have been directed to address increasing Taiwan’s minimum wage in light of rising consumer prices.
“This decision was made after consulting representatives from the country’s academic, public and private sectors, as well as business associations and labor rights groups,” he said. “The MOL will also set up a task force to review wage adjustments in the context of consumer prices and economic growth on a quarterly basis.”
Mr Chen called on the private enterprises to continue enhancing labor benefits through profit-sharing plans, as better labor-management relations also boost efficiency and productivity.
According to statistics from the Ministry of Economic Affairs, Taiwan’s minimum monthly wage has increased 11.53% from NT$17,280 in 2008 to NT$19,273 in July, when the last raise of 1.19% was implemented.