Taipei: Labor groups in Taiwan have agreed to a 3.18 percent increase in the minimum wage for 2026, despite expressing reservations about the amount. Employers have shown support for the decision, which was announced following a Ministry of Labor (MOL) review meeting that included representatives from labor, business, government, and academia.
According to Focus Taiwan, the new wage structure will see the monthly minimum wage rise to NT$29,500 (US$967), while the minimum hourly wage will increase from NT$190 to NT$196. This adjustment is set to benefit approximately 2.47 million workers across the nation, with 1.74 million on monthly salaries and 730,000 earning hourly wages.
Tai Kuo-jung, president of the Taiwan Confederation of Trade Unions, indicated that labor groups initially sought a 4 percent hike, contrasting with employers’ preference to limit it to 3 percent. The core of the discussion was how to equitably distribute the gains from economic growth, with employers highlighting that growth predominantly occurred in export-focused industries, whereas service sectors, which employ a majority of minimum-wage workers, remained behind.
In his remarks, Tai acknowledged the compromise, stating, “Although we are not fully satisfied, we can accept the result as a compromise.” Meanwhile, Yu Yu-chi, a business consultant at the Chinese National Association of Industry and Commerce representing employers, expressed contentment with the 3.18 percent increase, describing it as a decision that “satisfied all parties” and facilitated a positive conclusion to the meeting.
Labor Minister Hung Sun-han explained that the wage adjustment considered factors such as inflation, GDP growth, and trade uncertainties, including tariffs from the United States. The MOL noted the significant rise in the minimum wage over the past decade, with the monthly rate increasing by 47.4 percent from NT$20,008 in 2016 to NT$29,500, and the hourly rate growing by 63.3 percent from NT$120 to NT$196.
The MOL also pointed out that the wage hike will lead to increased labor insurance contributions, with additional premiums amounting to NT$1.15 billion for workers, NT$19.9 billion for employers, and NT$768 million for the government.
