Taiwan sees steepest drop in average monthly wages in seven years
Taiwan has experienced its biggest drop in the average real regular monthly wage and earnings in Q1’2023 due to high inflation and an economic slowdown.
The average real regular monthly wage for the January-March period in Taiwan’s industrial and service sectors was NT$41,596 (US$1,355), a 0.19% decline from the previous year and the steepest drop n seven years since 2016. The Directorate General of Budget, Accounting and Statistics (DGBAS) refers real wages as wages that are adjusted for inflation, or measured against the amount of goods and services that can be purchased.
Meanwhile, adjusted for inflation, the average monthly earnings that comprise regular wages and non-regular wages such as overtime pay and bonuses fell 0.23% in the first quarter from a year earlier to NT$64,796 (US$2,109.73). Despite this decline, the average nominal regular wage before inflationary adjustment was NT$45,286 (US$1,474.49), up 2.41% from a year earlier, while average nominal monthly earnings rose 2.36% to NT$70,543 (US$2,296.85) in the first quarter from a year earlier.
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Chen Hui-hsin, Deputy Director of the DGBAS Census Department, attributed the decrease in real regular wages and real monthly earnings in Q1’2023 to soaring commodity prices and a sluggish economy. Chen added that if consumer price index (CPI) growth can be brought back under 2% and the macro-economy improves, real regular wages and earnings are expected to move higher, reported Focus Taiwan.