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Ten measures to raise wages in Taiwan


In order to effectively boost pay levels in Taiwan, the Executive Yuan announced two multipoint action plans on May 14 of this year. The first lists short-term measures promoting higher wages for low-paid workers, while the second contains medium- to long-term actions aimed at raising pay at all levels of the workforce. Altogether, the 10 major actions described by the two plans will allow both employers and employees to reap the benefits of economic growth and establish a new model of economic development grounded in the values of innovation, employment and equitable distribution.

Five short-term measures to boost wages for low-paid workers

◆ Raise salaries for low-paid public-sector employees
The government will take the initiative to gradually raise salaries for low-paid temporary workers to a floor of NT$30,000 (US$1,003) per month, increase hourly pay for contract teachers, and provide university teaching assistants with retirement accounts and coverage under the national labor and health insurance programs.

◆ Include worker pay as a bonus criteria for selecting contractors and making awards
Employee pay levels will be considered when awarding government contracts, as well as in the selection of recipients of government awards and subsidies.

◆ Encourage higher private-sector salaries
Businesses will be encouraged to offer higher salaries to attract top talent in order to increase production capacity, creating a virtuous cycle beneficial to both workers and employers.

◆ Increase pay transparency
Efforts will be made to eliminate information asymmetry in the labor market, improve employees' access to data on market-rate compensation, and increase the public availability of salary information.

◆ Raise hourly wages
The government will seek appropriate increases in the hourly wage, and unhook adjustments to hourly pay from changes in monthly salaries.

Five medium- to long-term measures to raise pay for all workers

◆ Promote increased investment

Efforts will include removing barriers to investment, relaxing rules and regulations, and simplifying the review process for foreign investment projects.

◆ Accelerate the upgrade of industry
The willingness of businesses to raise pay will be boosted through innovative added value in the service industry, assistance for small- and medium-sized enterprises to build a platform for the internet of things, an investment environment optimized for startup companies, and improved operational fitness of firms in low-wage industries.

◆ Lighten the burden shouldered by wage earners
The government will improve social safety net protections for the economically disadvantaged, cut taxes, and periodically review adjustments to the tax burden borne by income earners.

◆ Improve the quality of the workforce
Actions will focus on helping young working people to develop work skills for new technologies and interdisciplinary approaches, as well as expanding job training subsidies for low-wage workers.

◆ Close the gap between student skills and industry needs
Efforts will target integrating business and vocational resources, improving job training, and tailoring academic programs based on the needs of society and industry.

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