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Taiwan's Central Bank advises govt. to increase minimum wage

The report suggests raising pay will stimulate economic growth and improve the economic livelihood of some 2 million people in the workforce

Central Bank Chairman Yang Chin-long

Central Bank Chairman Yang Chin-long (CNA photo)

TAIPEI (Taiwan News) – A report from Taiwan’s Central Bank suggests that in comparison to international averages, and Taiwan’s current financial situation, that there is still room for upward adjustment of the minimum salary in the country.

The report from the Central Bank suggests that raising the minimum wages across the country will not have a negative effect on employment numbers. On the contrary, the report suggests raising wages will improve distribution of capital, and stimulate economic growth.

The report suggests that even a minor increase in average wages would greatly benefit young people, women, and employees working in the manufacturing sector.

UDN quoted Central Bank Chair Yang Chin-long (楊金龍) as saying that the Central Bank is very concerned with the labor market in the country, because it directly affects consumer prices and the nation’s economic development.

Since the Central Bank is committed to maintaining financial stability and the value of currency, Yang hopes to see adequate measures taken to ensure a healthy labor force. Yang pointed out that the Central Bank can only make recommendations to the Ministry of Labor, but the Ministry does not have to take the advice.

The Central Bank said that Taiwan's wage level sits globally near the median level when compared to other countries, whether in terms of "minimum wages relative to median wages" or "minimum wages relative to average wages," which suggests that Taiwan is capable of instituting a minimum wage increase, according to the bank.

The report concludes that the minimum wage in Taiwan should be slowly increased to an appropriate level. The report suggests that a basic wage increase would improve the economic livelihood of some 2 million workers in Taiwan, which would likely see a spike in consumer spending and subsequently in product demand throughout the domestic market.

Updated : 2021-07-27 08:30 GMT+08:00