Taiwan to increase minimum wage for 2022

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).
By: | December 30, 2021

The Ministry of Labour’s (MOL) Minimum Wage Review Committee had on October 8 proposed raising the minimum monthly wage by 5.21% from NT$24,000 (US$867) and the minimum hourly wage from NT$160 (US$5.8).

The monthly and hourly wage increase, effective from January 1 next year, is expected to benefit 2.45 million workers.

The NT$25,250 (US$913) minimum monthly wage is classified as Grade 1 on the labour insurance salary. There are currently 15 grades in total, the highest being Grade 15, which refers to wages of NT$43,901 (US$1,587) and over.

The labour insurance salary classification will be reduced to 14 grades beginning next year following several minor adjustments, according to the MOL’s Bureau of Labor Insurance website.

From 2022, the labour insurance premium rate will be raised to 10.5% from the current 9.5%, plus 1% for employment insurance – an amount equivalent to 11.5% of salaries. Of this 11.5%, 70% is covered by the employer, 20% is from the employee’s salary, and the final 10% is covered by the government.

Also from 2022, the MOL will also scrap the practice of “businesses implementing day/night duties,” which includes employers asking staff who are off duty to help out with office tasks such as handling urgent paperwork or answering phone calls when necessary, to which they have to agree.

READ: Taiwan’s unemployment rate falls to 3.66% in November

With effect from January 1, 2022, employees must receive overtime pay for the hours they spend on such work, the ministry said, according to Focus Taiwan.