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(Sep 28, 2012) The Executive Yuan (Cabinet) has approved a proposal put forward by the Council of Labor Affairs (CLA) to increase the minimum hourly wage in Taiwan from NT$103 (about US$3.50) to NT$109 (about US$3.71). The raise is to take effect as of January 1, 2013. (Meg Chang, Taiwan Raises Minimum Hourly Wage, TAIWAN TODAY (Sept. 27, 2012); see also Wendy Zeldin, Taiwan: Proposal to Raise Minimum Wage, GLOBAL LEGAL MONITOR (Aug. 13, 2012).)

However, the Cabinet decided not to adopt the CLA's recommendation to increase the minimum monthly wage, which is currently set at NT$18,780 (about US$640), to NT$19,047 (about US$649). This rate had seen an increase of about 5% at the beginning of 2012. (Chang, supra; Executive Yuan Sets the Tone for the Minimum Wage Proposal with a Wage Increase in the New Year, Monthly Salary Rise to Be Adjusted Depending on GDP and Unemployment Rate [in Chinese], Executive Yuan website (Sept. 26, 2012).)

According to Premier Sean C. Chen,"[n]o change will be made to the monthly rate until the private sector shows further signs of recovery." He indicated that if there is a 3% increase in GDP for two quarters in a row (a condition he expects to be met in early 2013, based on the government's budget estimates) or the unemployment rate drops to under 4% for two consecutive months, the Cabinet would consider an increase in the monthly wage rate. (Chang, supra.)

The Cabinet also instructed the CLA to complete the following tasks:

  • improve the methods used for the "Labor Force Salary Survey," so that it really reflects the number of people who receive the basic wage and serves as a reference for policy-making;
  • adopt the average daily wage as the basis of calculation for the minimum wage;
  • consult the situation in other countries, such as Australia, Germany, Japan, and the United Kingdom, to assess the feasibility of setting a basic or minimum wage for workers in different age groups, industries, and regions, in contrast with the current basic wage in Taiwan that is applicable to all; and
  • conduct a comprehensive review, in regard to the Deliberation Committee set up by the current Basic Wage Deliberation Measures, as to whether or not that Committee should convene annually, its constituent members, the deliberation mechanism, explication and verification procedures, etc., for the benefit of systematization of basic wage deliberations. (Executive Yuan Sets the Tone for the Minimum Wage Proposal with a Wage Increase in the New Year, Monthly Salary Rise to Be Adjusted Depending on GDP and Unemployment Rate, supra.)

Author: Wendy Zeldin More by this author
Topic: Labor More on this topic
Jurisdiction: Taiwan More about this jurisdiction

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Last updated: 09/28/2012