The Cabinet on Thursday approved a raise of about 4% to Taiwan’s minimum wage at NT$27,470 (US$862) per month and NT$183 (US$5.74) per hour. The raise will take effect January 1, 2024.
The raise was announced by Cabinet spokesperson Lin Tzu-lun (林子倫) following a Cabinet meeting overseen by Premier Chen Chien-jen (陳建仁). Lin says that factors such as the war in Ukraine and climate change have caused the cost of raw materials to increase, leading to an overall rise in living costs. He says the wage hike demonstrates the government's commitment to care for workers. Lin adds that although this is Chen’s first wage hike as premier, it is the eighth consecutive year that the minimum wage has been raised under the Tsai administration.
Lin says that the premier has called for the labor ministry to draft a minimum wage law as soon as possible. Currently, there is no regular institutionalized system for reviewing minimum wage hikes, which are conducted on an ad hoc basis. President Tsai Ing-wen (蔡英文) advocated for a minimum wage law during her first term that would institutionalize such reviews, but a draft has yet to be presented to the legislature.
Labor groups had previously advocated for a larger wage hike, citing President Tsai’s campaign promise to raise the wage to NT$30,000 (US$940) before the end of her term.
The minimum wage has also become a point of debate among Taiwan’s 2024 presidential candidates. Kuomintang (KMT) candidate Hou You-yi (侯友宜) recently announced his proposal to raise the minimum wage to NT$33,000 if elected (US$1,035). In response, Democratic Progressive Party (DPP) candidate Lai Ching-te (賴清德) said that passing a minimum wage law is more important than any specific number.