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Taiwan's new minimum wage of NT$26,400 takes effect Jan. 1

Cabinet also approved increase of minimum hourly wage to NT$176

Taiwan dollars.

Taiwan dollars. (CNA photo)

TAIPEI (Taiwan News) — Taiwan's Cabinet has officially approved a plan to raise the monthly minimum wage to NT$26,400 (US$865) and the basic hourly rate to NT$176, effective Jan. 1, 2023.

The Ministry of Labor's Minimum Wage Review Committee on Sept. 1 decided that starting Jan. 1, the minimum monthly wage would be raised from NT$25,250 to NT$26,400, while the minimum hourly rate would be increased from NT$168 to NT$176. The plan was submitted to the Cabinet for approval.

After hearing the report on the "Minimum Wage Adjustment" on Thursday (Sept. 8), Premier Su Tseng-chang (蘇貞昌) pointed out that he had approved the salary adjustment plan on Wednesday (Sept. 7). This marks the seventh consecutive time that President Tsai Ing-wen (蔡英文) has raised the minimum wage since taking office.

Su said that there is a symbiotic relationship between labor and management and there are conflicts. Su acknowledged that it was not easy to reach a consensus on a salary increase.

The premier said that thanks to the integration of labor and management, and the government's ability to consider input when making decisions, he was grateful and pleased with this "satisfactory and acceptable result." Su stated that the increase in the minimum wage will greatly benefit young people who have just entered the workforce as well as disadvantaged workers.

An estimated 2.32 million workers are expected to benefit from this wage increase, according to the Cabinet.