The Cabinet’s personnel department has decided not to raise public sector wages in 2023. The decision came after a review meeting held earlier this month. The personnel department said it came to its decision after evaluating the government’s finances as well as the COVID-19 pandemic’s impact on the economy.
At the beginning of this year, Taiwan’s civil servants, soldiers, and teachers received a 4% raise—the highest increase in 25 years. But teachers’ groups point out that while prices have risen 22% over the last 20 years, wages for public sector workers have only increased by 9%.
The Cabinet says because of increasing fiscal strain on the government and costs associated with the pandemic, wages for civil servants, soldiers, and teachers won’t rise again next year. This comes as the country’s central bank expects inflation to exceed 3% this year.
Public sector wages are set by a government committee each year. Unlike in most countries, civil servants, teachers, and soldiers are not allowed to form unions in Taiwan, meaning they can’t collectively bargain for better wages and benefits. The personnel department says its decision is awaiting approval.