Taiwan’s Minimum Wage Increase to Benefit Over 2.6 Million Workers

Taipei:More than 2.61 million workers in Taiwan, including 414,400 migrant workers, are set to benefit from a minimum wage increase approved by the Ministry of Labor's committee. According to Focus Taiwan, the Minimum Wage Deliberation Committee agreed in its annual meeting to raise the monthly minimum wage by 4.745 percent, from NT$29,500 to NT$30,900, and to increase the hourly rate from NT$196 to NT$205. These changes are expected to take effect on January 1, 2027, pending Cabinet approval. Of those expected to benefit, approximately 2.2 million are Taiwanese workers, while 414,400 are migrant workers, representing 84 percent and 16 percent of the beneficiaries, respectively. Around 1.83 million workers will benefit from the monthly wage increase, while 784,600 will benefit from the hourly hike. However, the increases will not apply to migrant workers employed as live-in caregivers or domestic helpers, as they are not covered by Taiwan's Labor Standards Act. Committee members, representing various secto rs such as labor, business, academia, and government, largely agreed that an anticipated 2.07 percent annual rise in the consumer price index should be "fully reflected" in the wage adjustment. Nonetheless, there was disagreement on how the benefits of Taiwan's projected 11.05 percent economic growth should be distributed among workers. Labor representatives pushed for a more equitable sharing between workers and employers, while employer representatives highlighted the uneven development across different industries. A significant portion of the economic growth has been driven by high-tech and AI-related industries, while traditional industries and smaller businesses have experienced varied economic conditions. Labor Minister Hung Sun-han noted the necessity of considering employers' ability to pay alongside GDP growth when deciding on wage adjustments. Negotiations initially showed a substantial gap between committee members' positions but eventually converged after both labor and employer representatives made concessions, agreeing on the new NT$30,900 monthly wage. This NT$1,400 increase is among the largest in the past decade. If approved, it would mark the 11th consecutive year of minimum wage hikes, aligning with Premier Cho Jung-tai's earlier guarantee that the minimum monthly wage would surpass NT$30,000 next year.