A few weeks back, Filipino domestic workers received great news: an increase in their minimum salary, confirmed by the Department of Migrant Workers (DMW). Recently, workers in Taiwan also have much to be happy about, since the Ministry of Labor (MOL) has announced an increase in their minimum monthly wage. Yay!
In the coming year, the current minimum monthly wage of TWD 28,590 is set to rise by 3.2 percent to TWD 29,500 per month. Similarly, the current minimum hourly wage shall increase from TWD 190 to TWD 196 per hour, also by 3.2 percent.
Ministry of Labor Announces Minimum Salary Increase
The minimum monthly salary is set to rise in 2026, marking the 10th consecutive year that the amount has increased, Focus Taiwan reported. Notably, this is the second minimum wage increase under the term of President Lai Ching-te (the first increase took effect last May 2024). Meanwhile, the previous eight wage hikes had taken effect during the term of former President Tsai Ing-wen.
The increase comes amid rising inflation, as workers struggle without salary increase, while employers grapple with increasing tariffs. The latest wage hike has yet to approved by the Executive Yuan, though its approval is expected to be given soon.
Factors Considered for Salary Increase
The announcement was made after a review held by the Minimum Wage Deliberation Committee, which consisted of representatives from the government, business, labor, and academic sectors.
Among the factors considered by the committee were: inflation, gross domestic product growth, increase in Consumer Price Index (CPI), and tariffs imposed by the United States (i.e. 20 percent tariffs on many goods imported from Taiwan into the US).
Compromise Between Labor Groups and Employers
Labor groups had conveyed that the wage hike should have been closer to 4 percent, urging the MOL to increase the minimum monthly salary to TWD 29,734, and the minimum hourly wage to TWD 198. Employers, on the other hand, mentioned the increasing tariffs as a huge factor. That being said, both groups had agreed on the 3.2 percent increase, indicating a satisfactory compromise between them.
According to the MOL, the latest salary increase is expected to benefit almost 2.47 million workers across the country. This figure includes about 1.74 million workers earning a monthly salary, and 730,000 hourly-wage workers.
As the country faces rising inflation and increasing tariffs, it’s good to know that there are positive factors, such as GDP growth and Consumer Price Index (CPI) increase. Because of this, monthly and hourly wages can be raised, benefiting workers in various sectors.
Speaking of salary, have you ever thought about how your overtime pay is computed? Check out this article, where we talk about how to calculate overtime pay in Taiwan.