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Taiwan average wage fell 1.98% in Jan.-Nov. 2012

Taiwan average wage fell 1.98% in Jan.-Nov. 2012

TAIPEI (Taiwan News) – The average wage fell by 1.98 percent for the period January-November last year, the government said Tuesday, while the European Chamber of Commerce Taiwan warned that low salary increases would cause more talent to leave the country.
Taking rising prices and limited year-end bonuses into account, the average wage fell to NT$45,721 (US$1,576) a month for the period from January to November last year, a drop of 1.98 percent compared to the same period in 2011, the Cabinet-level Directorate-General of Budget, Accounting and Statistics said.
The irregular part of wages, meaning year-end bonuses, performance bonuses and overtime pay, fell by 5.93 percent during the same period, according to official data.
The figures for last year marked the first fall after two years of rises, the DGBAS said. At the height of the global financial crisis in 2008 and 2009, average wages fell by 3.19 percent and 4.56 percent respectively. In 2010, the figure rose by 4.52 percent and in 2011 by 1.33 percent compared to the same period the previous year, according to the DGBAS.
Wages were likely to increase by 3 percent to 4 percent this year at 40 percent of businesses surveyed by recruitment organization Michael Page, according to a presentation hosted by the ECCT Tuesday.
However, the expected rises were still unlikely to persuade top talent to stay in Taiwan because they had to compete with the 4 percent to 5 percent offered in Hong Kong and the 7 percent in China, said Dan Chavasse, the company’s regional managing director for North Asia.
“A general rise in remuneration offered by employers in Taiwan over 2013 would assist with talent attraction and retention,” the report said, adding it might even encourage some local professionals to stay in the country and some expats to return home.
The 2013 Salary and Employment Forecast said 69 percent of employers said they had professionals who were likely to leave Taiwan this year to work in other countries. Up to 67 percent identified China as the most likely destination for those managers, Michael Page said, because growth on the other side of the Taiwan Straits was still high, language and culture were similar and transportation was convenient.
“Taiwan’s professional skills shortage is occurring across all industry sectors and at all experience levels,” the recruitment company remarked.
The survey also indicated that Taiwanese companies were traditionally not pro-active at providing internal opportunities outside the country due to the lack of a pipeline to replace them. China’s hunger for professional talent from Taiwan and local youths’ propensity to travel overseas for university studies also increased the brain drain, the survey showed.
Up to 44 percent of respondents believed salaries would increase at a faster level than inflation in 2013, though only 3 percent predicted across-the-board wage increases, with 80 percent believing performance would be the most likely factor.
As to the range of expected salary increases, 41 percent of businesses in the survey said they would hike wages by a range from 3 percent to 4 percent, while 28 percent predicted rises from 4 percent to 6 percent.


Updated : 2021-06-24 04:08 GMT+08:00