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Pay hikes mulled for military, public employees

Pay hikes mulled for military, public employees

Premier Mao Chi-kuo said in a report to the Legislative Yuan Tuesday that the government is considering whether it should give the military, civil servants and educators a pay raise this year. The Premier has reportedly asked the Personnel Administration to conduct a survey of wages in the public sector, with insiders expressing cautious optimism that employees may be in for a pay hike.

With the nation’s economy trending upward recently, KMT Legislator Liao Cheng-ching suggested Tuesday that salaries in civil service ranks be increased by 3% on January 1 next year, a move which he said should also serve to help stimulate pay scales in the private sector. Premier Mao has said he believes that as the overall economic situation improves, the business sector should take the lead in offering better salaries to staff, and the government should be prepared to nudge the salaries of civil servants upwards in the next annual budget.

Liao noted that the government called on companies in Taiwan to give employees a pay raise last year, but the push was largely ignored and ineffective. He said there have also been pushes to offer corporate tax breaks in order to make it easier for companies to hike salaries, but cautioned that such moves are usually unwise.

Liao added that in the past some companies have been stimulated to raise salaries after increases in civil service pay scales, including 2001, 2005 and 2011 when military and government salaries were hiked by 3%. He noted that last year the economic indicators for Taiwan were all healthy, and this would be a good time to schedule pay raises for the military and government employees.

Civil servants have benefited from one salary increase in the seven years that President Ma Ying-jeou has been in office. Ma has often encouraged private companies to boost the salaries of their employees. In addition, Premier Mao has repeatedly stressed that he wants to "look for opportunities for business and find a way forward for the young people of Taiwan."

The premier said recently that the government has taken note of improvements in the overall economic situation, and adjustments in civil service pay will be considered in forthcoming budget planning. Typically the Executive Yuan proposals for annual budgets are presented sometime before the end of July.

Huang Fu-yuan, head of the Bureau of Personnel in the Executive Yuan, says that a 3% increase in pay for civil servants would add a total of about NT$21.4 to the debit side in the annual budget.

Updated : 2021-09-21 19:09 GMT+08:00