Minimum Wage Review: Commercial Weekly Association's Hsu Shu-po Expresses Respect, Calls for Re-examination of Labor and Health Insurance Cost-Sharing and Relaxation of Support Eligibility

The Ministry of Labor convened the Minimum Wage Review Committee today (24th), deciding to raise the monthly minimum wage from NT$29,500 to NT$30,900—an increase of NT$1,400—effective next year (2027), and the hourly rate from NT$196 to NT$205. Hsu Shu-po, Chairman of the Commercial Weekly Association, stated that the minimum wage system is a crucial foundation for safeguarding the livelihood of grassroots workers, and expressed respect for this adjustment. However, he noted that businesses are currently facing changes in the international situation and operating environment, with not only operational costs but also compliance costs continuously rising. He urged the government, while enhancing wage protections, to also examine the overall cost burden on enterprises and propose corresponding support measures. In particular, 3K (dangerous, dirty, arduous) industries and traditional sectors heavily rely on foreign migrant workers, and the minimum wage increase will further加重 their burden.

Hsu pointed out that Taiwan's recent economic growth has been primarily driven by global demand for high-tech products, but the benefits have not been evenly distributed. Exports are highly concentrated in AI and information and communications industries, accounting for over 80% of total exports, while grassroots SMEs have not experienced corresponding growth. Most traditional industries and domestic service sectors continue to face pressures from international competition, labor shortages, and rising operating costs.

Especially for SMEs lacking the ability to pass on costs, the minimum wage increase will trigger a rise in statutory personnel costs such as labor insurance, labor pension, and health insurance. Given the differences in profitability across industries, enterprises' capacity to absorb these costs varies. The government should not solely rely on overall economic growth figures to assess corporate burdens, but must recognize the disparities across different sectors.

Hsu stated that the Commercial Weekly Association respects moderate adjustments to the minimum wage to improve the lives of grassroots workers, but the costs arising from enhanced labor rights should not be borne solely by enterprises.

For example, under the current labor insurance system, premiums are shared with employers covering 70%, employees 20%, and the government 10%. An increase in the basic wage will simultaneously raise enterprises' related personnel costs. He called on the government to re-examine the cost-sharing mechanisms of social insurance programs such as labor and health insurance alongside the minimum wage increase, and moderately increase the government's share to alleviate the long-term statutory personnel cost pressures on businesses.

In response to the committee's decision, the Ministry of Labor will collaborate with the Ministry of Economic Affairs to swiftly formulate supporting measures to provide necessary assistance to industries. The Commercial Weekly Association welcomes the government's recognition of the actual difficulties faced by industries, but emphasized that more importantly, follow-up policies must be effectively implemented. They hope that the application procedures and eligibility thresholds for related measures will be moderately relaxed, ensuring that businesses in genuine need can 'see and benefit' from the policies, avoiding situations where well-intentioned policies fail to deliver due to overly complex procedures or high thresholds.

Hsu emphasized that only through stable business operations can enterprises provide stable employment and continuously create room for wage growth. The minimum wage policy cannot be viewed in isolation. If the government enhances labor protections, it must also jointly bear the systemic costs. In recent years, government finances have clearly improved, creating conditions for the government to moderately assume more responsibility. Moving forward, beyond continuously reviewing the minimum wage policy, there must be serious re-examination of the cost-sharing mechanisms for labor and health insurance and other statutory enterprise costs. As the policy maker and dominant force in the system, the government must fulfill its corresponding responsibilities to balance labor rights protection with enterprise operational resilience and employment stability, achieving sustainable development for workers, businesses, and the overall economy.