Will the Minimum Basic Wage Exceed 30,000 Next Year? Content of Labor Ministry Advisory Meeting Revealed — Employers Focus on 'This Trend'

The minimum basic wage in Taiwan has been raised for 10 consecutive years, and Premier Cho Jung-tai has repeatedly guaranteed that the minimum wage will be raised again by 2027 and will definitely exceed 30,000 TWD. The Ministry of Labor convenes the Minimum Wage Review Committee every September to discuss whether to adjust the minimum wage and the extent of such adjustments. On the 27th, the Ministry held a joint meeting of the Minimum Wage Review and Advisory Committees to exchange opinions on the current year's economic and social conditions.

Deputy Minister of Labor Lee Chien-hung reported on the meeting, noting that employer representatives expressed support for a reasonable and moderate adjustment of the minimum wage but requested that the Ministry provide more complete and sufficient data. The Ministry committed to fulfilling this request.

Lee stated that labor representatives focused on two key points. First, the minimum wage should protect low-income workers, and the fruits of economic growth should be fairly shared with workers. Second, although the minimum wage has been adjusted for 10 consecutive years and has indeed benefited many low-wage workers, attention must be paid to starting salaries for young workers, especially those newly entering the workforce, as well as wages for part-time, temporary, and freelance workers.

Employer representatives, meanwhile, emphasized two areas. First, they requested additional data to supplement the indicators presented by the Ministry of Labor. Employer groups support reasonable and moderate wage adjustments but insist on having comprehensive and sufficient data to make informed decisions. The Ministry has committed to providing such data. Second, following the U.S. release of its Section 301 investigation results, some employer representatives highlighted that the issue of 'forced labor' has become an international trend. As Taiwan's economy is export-oriented, businesses should gradually align with international standards, ensure fair recruitment practices, and reduce trade-related risks and impacts associated with forced labor.

However, small, micro, and medium-sized enterprises (SMEs) are concerned about potential cost shocks from wage adjustments. President Lai Ching-te, in his speech marking his second anniversary in office on May 20, announced a 100 billion TWD upgrade initiative to accelerate the transformation of SMEs and traditional industries. Premier Cho also expressed hope in June that the draft 'SME Transformation and Upgrading Development Act' would be completed by the end of August.

Regarding the progress of the draft legislation, Lee Chien-hung stated that while Premier Cho hopes to submit it to the Executive Yuan in August, the specific timeline depends on the planning of the Ministry of Economic Affairs, which is responsible for drafting the bill. Once legal basis is established, specific policy plans to assist SME workers' wages will be developed. The Ministry of Labor is actively discussing and planning with the Ministry of Economic Affairs and the Development Council.

Notably, Premier Cho stated before this year's Labor Day that the government has adjusted the minimum wage for 10 consecutive years, reaching 29,500 TWD monthly and 196 TWD hourly. He assured the public, 'I guarantee that next year it will definitely exceed 30,000 TWD,' and the increase will be manageable for Minister of Labor Hung Shen-han. Regarding the exact adjustment figure, Lee noted it was not the focus of the 27th meeting. Only one labor representative briefly mentioned the need to share economic growth benefits with workers to a reasonable extent.