Taiwan to raise minimum wage by 5 percent

Hike to NT$23,100 to start next year if Cabinet approves

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Taiwan to hike minimum salary by 5 percent to NT$23,100 a month next year.

Taiwan to hike minimum salary by 5 percent to NT$23,100 a month next year. (By Central News Agency)

TAIPEI (Taiwan News) – A review committee has recommended a hike in the minimum wage by 5 percent to NT$23,100 (US$749) per month, but the Cabinet still has to give its final approval.

The present minimum monthly salary stands at NT$22,000 (US$713), while the hourly wage, now standing at NT$140 (US$4.5), is likely to rise to NT$150 (US$4.8), the Central News Agency reported Thursday evening.

Each third quarter of the year, the review committee, which consists of representatives from different sectors of society, tries to reconcile demands for higher wages from labor groups and calls for a freeze or for low rises from business organizations.

Thursday’s meeting was reportedly long and difficult, and it wasn’t until the evening that the Ministry of Labor came up with the above conclusion.

If the Cabinet approves, the changes are likely to come into effect next year, reports said.

Most hikes over the past two decades amounted to between 1 and 5 percent, with an exception in 2007 when the minimum wage surged by 9.09 percent, CNA reported.