Taking effect from January 1 next year, the monthly minimum wage will be raised to NT$26,400 (US$855) and the basic hourly rate to NT$176 (US$5.7).
Many SMEs earn relatively low profits and would pass on the impact from a wage hike to their customers by raising product prices.
A larger increase might prompt companies to pass additional costs onto consumers, thus driving up prices.
Unions can apply for subsidies to train workers in artificial intelligence (AI) to prepare the workforce for disruptions brought by a changing labour market.
About 44.8% of companies are considering raising wages in the second half of the year to retain their best employees.
In response, several business groups have urged the government to come up with appropriate support measures for firms that require financial assistance.
Taiwan's government has been urged to provide subsidies for parents who miss work due to caregiving responsibilities.
Wages rose in many sectors as revenue grew amid a stable global economy, said the Directorate-General of Budget, Accounting and Statistics (DGBAS).
The demand for workers is expected to grow by 87,000 between late April and late July, the highest estimated growth for the same period since 2012.
Employers have been urged to encourage their employees to quit smoking after it was listed as a risk factor for COVID-19 complications.
Faced with barriers of entry, women who want a return to work after giving birth often took a long time before they secured a new job.
Presently, only civil servants are entitled to paid leave when they take off days to care for their families, and not private sector workers.
Although work satisfaction increased to 72.5% last year, 13.5% of workers reported that they did not get extra pay for working overtime.
The pay gap between the hourly wage of male workers and that of female ones averaged NT$57 or 15.8% last year, according to the Ministry of Labour.
In recent weeks, the number of furloughed workers in Taiwan has hovered around 10,000, which indicates a stable trend, said an official.
The unemployment rate fell by 0.02 percentage points from November to 3.64% in December, as the country continues to recover from the pandemic.
The Ministry of Labour (MOL) has increased paid parental leave and implemented other family-friendly policies with immediate effect.
The amended law also allows spouses of pregnant women to take up to seven days of paid leave to attend prenatal appointments with their wives.
77.8% of salaried workers are in favour of the 52-hour workweek, a policy launched in 2018 to reduce long working hours.
The Executive Yuan has approved the raising of the minimum monthly wage to NT$25,250 (US$913) and the minimum hourly wage to NT$168 (US$6).
The number of first-time jobseekers and workers who quit their jobs fell by 4,000 over the same period, as Taiwan's economy continues to recover.
Democratic Progressive Party legislator Fan Yun has called on the government to grant expectant fathers a week of prenatal leave.
In October, a total of 456,000 people were out of work, down 15,000 from the previous month, as the domestic employment market continues to improve.
The move is expected to benefit 820,000 military personnel, public school teachers and civil servants, and 200,000 contract workers.
The total number of workers in the industrial and service sectors grew by 0.3% to nearly 8.12 million in September, as businesses continued to recover.
As domestic demand recovers due to the government's stimulus measures, the number of furloughed workers fell by 5,635 in one week.
Businesses that have seen their revenue decline by at least 20% in September and October from the same period last year will be eligible for the wage subsidies.
As locally transmitted cases of COVID-19 have been brought under control, the employment rate fell for a third consecutive month in September.
Workers in Taiwan worked more hours than those in other countries in the world last year except for three other countries, according to the Ministry of Labour.
The number of employed people across various sectors showed an increase in August month-on-month, with wages growing marginally.