[Taiwan] Minimum wage likely to rise by at least 3%

On October 7, Taiwan’s Labor Minister Hsu Ming-chun (許銘春) told lawmakers that the ministry's Minimum Wage Review Committee is likely to agree to raise the minimum wage by at least 3 per cent when it meets later today, Focus Taiwan reports.

In response to questions from lawmakers at the Legislative Yuan about a possible minimum wage hike starting in 2022, Hsu said there was likely to be an increase of at least 3 per cent.

However, she emphasised that the extent of the increase would not be determined until the committee convenes.

The current minimum monthly wage in Taiwan is NT$24,000 (US$857) and the minimum hourly wage is NT$160.

Hsu's comments reflected an estimate made by National Taiwan University Associate Professor Hsin Ping-lung (辛炳隆) during an interview with CNA earlier this month.

Hsin reportedly said the government is unlikely to freeze the minimum wage this year because the country has experienced positive economic growth and an increasing consumer price index over the past year.

The Chinese National Federation of Industries - which represents 159 business associations in Taiwan - issued a statement on October 7 saying the government's plan to raise the minimum wage would further impact small and medium-sized businesses already suffering losses from the impact of COVID-19.

The group cited a recent survey conducted among 200 of its members that indicated 93 percent of respondents could accept an increase of no more than 3 percent.

However, the increase, if agreed upon by the review committee, will fall short of the expectations of labour groups which have been calling for a 6-8 per cent bump.

On Thursday, members of several trade unions assembled outside the General Chamber of Commerce to demand a bigger share of business profits for their employees. They noted that government estimates in August indicated the economy will grow 5.88 percent in 2021.

They also argued that since last year’s minimum wage increase was only 0.84 per cent - the lowest since President Tsai Ing-wen (蔡英文) took office in 2016 - the increase this year should be bigger.

In her October 7 comments, Hsu also told lawmakers that if the minimum wage hike is confirmed the government will focus on plans to provide subsides to companies that have suffered financially from the pandemic. She declined to provide further details.

Hsu also ruled out the possibility of increasing the minimum wage for certain industries only. She said that once the review committee reaches a decision and it is approved by the Cabinet, the policy will be rolled out in all sectors.

The committee is legally required to hold a minimum wage review meeting in the third quarter of every year. If it decides to adjust the minimum wage it then submits its decision to the Cabinet for approval. The Cabinet invariably follows the recommendation of the committee.

On October 7, Taiwan’s Labor Minister Hsu Ming-chun (許銘春) told lawmakers that the ministry's Minimum Wage Review Committee is likely to agree to raise the minimum wage by at least 3 per cent when it meets later today, Focus Taiwan reports.

In response to questions from lawmakers at the Legislative Yuan about a possible minimum wage hike starting in 2022, Hsu said there was likely to be an increase of at least 3 per cent.

However, she emphasised that the extent of the increase would not be determined until the committee convenes.

The current minimum monthly wage in Taiwan is NT$24,000 (US$857) and the minimum hourly wage is NT$160.

Hsu's comments reflected an estimate made by National Taiwan University Associate Professor Hsin Ping-lung (辛炳隆) during an interview with CNA earlier this month.

Hsin reportedly said the government is unlikely to freeze the minimum wage this year because the country has experienced positive economic growth and an increasing consumer price index over the past year.

The Chinese National Federation of Industries - which represents 159 business associations in Taiwan - issued a statement on October 7 saying the government's plan to raise the minimum wage would further impact small and medium-sized businesses already suffering losses from the impact of COVID-19.

The group cited a recent survey conducted among 200 of its members that indicated 93 percent of respondents could accept an increase of no more than 3 percent.

However, the increase, if agreed upon by the review committee, will fall short of the expectations of labour groups which have been calling for a 6-8 per cent bump.

On Thursday, members of several trade unions assembled outside the General Chamber of Commerce to demand a bigger share of business profits for their employees. They noted that government estimates in August indicated the economy will grow 5.88 percent in 2021.

They also argued that since last year’s minimum wage increase was only 0.84 per cent - the lowest since President Tsai Ing-wen (蔡英文) took office in 2016 - the increase this year should be bigger.

In her October 7 comments, Hsu also told lawmakers that if the minimum wage hike is confirmed the government will focus on plans to provide subsides to companies that have suffered financially from the pandemic. She declined to provide further details.

Hsu also ruled out the possibility of increasing the minimum wage for certain industries only. She said that once the review committee reaches a decision and it is approved by the Cabinet, the policy will be rolled out in all sectors.

The committee is legally required to hold a minimum wage review meeting in the third quarter of every year. If it decides to adjust the minimum wage it then submits its decision to the Cabinet for approval. The Cabinet invariably follows the recommendation of the committee.