Taiwan trade group pushes for minimum wage hike cap

A larger increase might prompt companies to pass additional costs onto consumers, thus driving up prices.
By: | August 19, 2022
Topics: Compensation and Benefits | News | Taiwan

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.   

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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.