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Raising the minimum wage

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To raise domestic pay levels and improve standards of living, the government has adjusted the national minimum wage every year since 2016. Additional measures include increasing individual income tax deductions; improving pay transparency; and raising the salaries of military personnel, civil servants and public school teachers to stimulate comparable salary increases in the private sector.

To safeguard the basic welfare of vulnerable workers, the government has approved an increase to the national minimum wage for the eighth consecutive year. Once this latest hike becomes effective on January 1, 2024, the monthly minimum wage will have risen by 37.3% from NT$20,008 (US$623) in 2016 to NT$27,470 (US$855), and the hourly minimum wage by 52.5% from NT$120 (US$3.74) to NT$183 (US$5.70).

The wage hike is mainly aimed at taking care of young laborers, women reentering the workforce and older workers, the majority of whom are paid on an hourly wage system. The government hopes that increasing working-class incomes will boost productivity, and that the higher minimum wages will provide for the basic living expenses of marginal workers as well as spur domestic consumption and economic growth, thereby creating a win-win situation for both labor and management.

The basic wage in Taiwan is the minimum hourly or monthly remuneration legally paid to workers. To ensure steady and transparent adjustments, the government is currently vigorously promoting a minimum wage law that would create a sounder wage policy by strengthening the adjustment review mechanism. The proposed law would provide enhanced protections and raise wage levels to support the livelihoods of workers and their families.

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