The Executive Yuan today gave the green light to raising the nation's hourly basic wage to NT$109 (US$3.64) effective January 1, 2013 but held off on a simultaneous increase of the monthly minimum wage to NT$19,047 (US$635), saying the latter could take effect when the nation's GDP enjoys growth of more than 3 percent for two consecutive quarters or the unemployment rate stays below 4 percent for two consecutive months.
The Executive Yuan announced its decision after a meeting, convened by ministers without portfolio Hsueh Cherng-tay and Kuan Chung-ming, to review the Council of Labor Affairs' (CLA) proposal on wage increases. It noted that minimum wage policy is "a crucial matter to be approached cautiously."
At present, the nation's hourly basic wage and minimum monthly wage are NT$103 (US$3.43) and NT$18,780 (US$626) respectively.
The CLA was also instructed to complete the following tasks to facilitate future deliberations on this issue:
1. Improve its salary survey so the number of laborers receiving the minimum wage may be more precisely determined
2. Adopt regular earnings as the basis for calculating the Kaitz index, then compare Taiwan's results with those of major countries
3. Study the feasibility of shifting from a uniform minimum wage to varying minimum wages based on differences in laborers' ages, occupations and regions of employment, taking into account circumstances in countries such as Japan, the United Kingdom, Germany and Australia which use the latter system; review and examine the basic wage mechanism over the long term
4. Systematize the operations of the Basic Wage Commission, which is established by the current Regulations for the Deliberation of Basic Wage, by determining whether it should convene every year, which officials should compose its membership, and its deliberation and approval procedures
The Executive Yuan emphasized that labor is an essential driving force behind economic growth; the government pays great attention to safeguarding labor's rights and interests; and the labor policy has been among the government's top priorities. Premier Chen particularly affirmed CLA Minister Wang Ju-hsuan's efforts in this regard.
The government also pointed out that the monthly minimum wage has already increased twice in the last two years, from NT$17,280 (US$576) to NT$18,780 (US$626) overall, a growth rate of 8.7 percent. In contrast, average salary growth was estimated at 0.6 percent in the manufacturing sector and 2.5 percent in the industrial and service sectors over the same period, while the consumer price index rose 6.7 percent.