Operating costs in the private business sector in Taiwan are set to increase by at least NT$50 billion (US$1.55 billion) annually following an amendment to the Labor Standards Act, Labor Minister Kuo Fong-yu (郭芳煜) said on Thursday.
The amendment, which comes into effect in January, introduces a five-day work week with one compulsory rest day, one flexible day off and eliminates seven national holidays.
According to Kuo, although the ending of the seven national holidays reduces operating costs by NT$63 billion, the private sector will still need to spend an additional of NT$14.6 billion annually, given that the average worker in Taiwan has worked for 7.5 years and so is entitled to 13.4 days annual leave.
After accounting for overtime pay and operating costs during a worker’s annual leave, the private sector will need to spend an additional NT$110 billion annually, Kuo said. In other words, despite savings of NT$63 billion, the sector will still have to shell out at least an additional NT$50 billion annually.
Source: Focus Taiwan News Channel