Taiwan trade group pushes for minimum wage hike cap
A Taiwanese trade group has called on the government to cap next year’s minimum wage hike at 3%, citing that increase beyond could worsen inflation and be unfavourable for private consumption.
The notion of a 5% hike to boost the monthly minimum wage to NT$26,513 (US$884) has been floated, and President Tsai Ing-Wen has she wants the figure to be NT$30,000 (US$999.60), reports Taipei Times.
Lin Por-fong, Chairman of Third Wednesday Club, highlighted that an increase of 5% would mainly benefit foreign workers as the average monthly wages of Taiwanese is higher than what the minimum wage rate would be. A bigger hike would also prompt companies to pass additional costs onto consumers, driving up prices, he said.
In September, the Ministry of Labour will review the minimum wage for the coming year. The Minimum Wage Review Committee comprises government officials, representatives of unions and the private sector, and academics.