11th Consecutive Increase? Minimum Wage Review Frontline Battle Begins Today – Two Key Issues for Labor and Business Await September Revelation

The frontline battle for Taiwan's minimum wage review has officially begun. On the 27th, the Ministry of Labor convened a joint meeting of the Minimum Wage Review Committee and Advisory Council, inviting representatives from labor, business, government, and academia to exchange opinions on this year's economic outlook and potential for wage adjustments. Labor representatives emphasized that the fruits of economic growth should be fairly shared by workers and continued to highlight concerns regarding starting wages for young workers and the rights of non-regular employees. Business representatives expressed support for reasonable and moderate wage increases but urged the authorities to provide more comprehensive economic indicators and data to establish a more solid foundation for the formal review in September.

Taiwan's minimum wage has risen for ten consecutive years. From a monthly wage of NT$20,000 and an hourly rate of NT$120 in 2016, it has increased to a monthly NT$29,500 and an hourly NT$196 this year. With the formal minimum wage review scheduled for September, there is intense public interest in whether the monthly rate will surpass the symbolic NT$30,000 threshold, ensuring that wage adjustment policies continue to effectively protect low-income workers.

Deputy Minister of Labor Li Chien-hung, summarizing the discussion after the meeting, stated that labor representatives clearly expressed that the core value of minimum wage is to protect low-income workers. As Taiwan's economy continues to grow, the benefits of economic growth should be fairly distributed to all workers. Labor representatives also noted that while the past decade of consecutive increases has indeed helped some low-wage workers, greater attention and support are still needed for the starting salaries of young people entering the workforce and the wage structures of part-time, temporary, and gig economy workers.

On the other hand, business representatives stated they generally support reasonable and moderate wage increases but emphasized that the tools used to assess changes in economic indicators should be further improved. They recommended that the Ministry of Labor supplement more comprehensive data before the September review—such as historical trends in wage medians and overall productivity figures—so that review committee members can make decisions based on more credible evidence.

Additionally, some business representatives specifically mentioned that recent U.S. survey results show that the prohibition of forced labor has become an irreversible international trend. Taiwan, being export-oriented, should actively respond to this global movement and proactively align with international standards to reduce potential risks in export trade.

Since the official implementation of the Minimum Wage Act two years ago, it has fully replaced the previous basic wage review system. The law mandates that the annual change rate of the Consumer Price Index (CPI) be a required reference indicator to maintain workers' essential purchasing power and also lists ten additional economic and social indicators that may be considered. The Ministry of Labor holds annual joint meetings to allow tripartite committee members to fully communicate and exchange views before the formal review, aiming to ensure a smoother formal deliberation process in September through thorough dialogue and data review, balancing the interests of labor and business with Taiwan's overall economic development.