Minimum Wage Review: Officially Breaks TWD 30,000 Barrier, Benefiting 2.61 Million! Monthly Wage to Rise to TWD 30,900 and Hourly Rate to TWD 205 Next Year

Today (24th), Taiwan's Minimum Wage Committee announced its decision. After thorough discussions among representatives from labor, business, academia, and government, it was resolved that starting January 1, 2027, the monthly minimum wage will be raised from the current TWD 29,500 to TWD 30,900—a 4.745% increase. The hourly minimum wage will also be adjusted proportionally, rising from TWD 196 to TWD 205. The proposal will be submitted by the Ministry of Labor to the Executive Yuan for final approval. If ratified, this will mark the 11th consecutive annual increase since 2016, symbolizing the official entry into the TWD 30,000 monthly wage era. An estimated 2.6116 million workers are expected to benefit, reinforcing vital support for grassroots workers' rights and basic living standards.

The committee convened this morning, with labor and management representatives engaging in deep deliberations on key indicators such as the Consumer Price Index (CPI) year-on-year growth rate, GDP growth, industrial development conditions, and workers’ cost-of-living needs. All committee members reached a consensus that inflation should be fully reflected in wage adjustments and that the benefits of economic growth should be fairly shared between employers and employees. Labor representatives emphasized that rising prices for daily necessities have placed heavy financial burdens on low-income and frontline workers. Given Taiwan’s strong economic performance this year, they argued that workers should tangibly share in these gains. Business representatives, however, cautioned that domestic industries are experiencing a pronounced K-shaped divergence—economic growth being driven primarily by a few AI and high-tech sectors—while many traditional industries and SMEs continue to struggle with rising raw material costs, international competition, and labor shortages. They urged that minimum wage adjustments consider varying employer affordability across sectors.

With positions initially at an impasse, academic representatives advocated for a balanced approach based on statutory criteria under the Minimum Wage Act, calling for comprehensive consideration of inflation, economic growth, and employer payment capacity, while acknowledging widening industrial disparities. The Minister of Labor facilitated multiple rounds of mediation, listening carefully to all parties before guiding both sides toward compromise, ultimately securing agreement. In response to challenges faced by traditional industries and SMEs, the Ministry clarified that the government has already initiated cross-ministerial coordination, including the Ministry of Economic Affairs’ “Support and Strengthening Plan for Small and Medium-Sized Enterprises” and proposed amendments to the “SME Transformation and Upgrading Promotion Act.” Additionally, the positive impact of the planned TWD 10,000 cash disbursement in 2027 on domestic demand is expected to boost industrial competitiveness and alleviate employer burdens. For manufacturing and service sectors affected by Middle East conflicts and rising material costs, the Ministry of Labor will collaborate with the Ministry of Economic Affairs to accelerate the development of targeted support measures, maintaining its commitment to “strongly support workers and strongly support industries.”

The Ministry further emphasized that since launching the continuous wage-increase policy in 2016, the monthly minimum wage has risen from TWD 29,500 to TWD 30,900—a cumulative increase of 54.4%. The hourly rate has climbed from TWD 196 to TWD 205, a remarkable 70.8% cumulative rise, benefiting both local and foreign workers. Looking ahead, the government will promote overall wage growth through four key strategies: regular minimum wage adjustments, incentivizing manufacturing sector wage hikes by increasing foreign worker quotas, raising wage disclosure thresholds for job postings, and enhancing pay transparency for listed and OTC companies. Simultaneously, the Ministry will actively provide vocational training resources, strengthen union bargaining power, and rigorously enforce labor inspections to safeguard workers’ legal rights, comprehensively building a high-quality and competitive labor environment.