Taiwan’s labor ministry has proposed raising the monthly minimum wage next year to NT$26,400 (US$860) — a jump of almost 5%. The plan would also lift the minimum hourly wage by a similar margin to NT$176 (US$5.80).
The ministry announced the proposal on Thursday after a three-hour meeting between labor representatives, employers, academics and government officials.
It still needs the Cabinet’s approval to become law.
Labor Minister Hsu Ming-chun says the group arrived at the figure after taking into account the government’s predictions for economic growth and inflation.
Taiwan’s statistics bureau expects the economy to grow by a little under 4% this year, while consumer prices are expected to rise by almost 3%.
Taiwanese consumers have been mostly insulated from the skyrocketing energy prices experienced in other countries because the government owns the country’s electricity provider.
Taiwan’s hourly minimum wage has risen by almost 50% since President Tsai Ing-wen came to power in 2016. But the monthly minimum wage is still short of Tsai’s goal of reaching NT$30,000 by the end of her presidency in 2024.
Among the so-called Asian Tiger economies of Taiwan, South Korea, Singapore and Hong Kong, Taiwan’s minimum wage is higher than Hong Kong’s, while Singapore has no minimum wage. But Taiwan’s is lower than South Korea’s new hourly minimum rate of US$7.40 — even though Taiwan’s economic production is greater than South Korea’s once you adjust for population and the cost of living.