TAIPEI (Taiwan News) — Companies in Taiwan are urging a less than 3% increase in the minimum wage due to a gloomy profitability outlook as the country is scheduled to discuss the issue on Thursday (Sep. 1).

A survey conducted by Taiwan’s Chinese National Federation of Industries (CNFI) between Aug. 1-15 showed that 76% of the 209 businesses that participated in the poll favored a less than 3% cap on the wage adjustment. About 22% were opposed to any hike, wrote CNA.

Around 51% of the firms said they saw a decline in revenues for the first half of the year and 56% reported a drop in earnings. Meanwhile, 64% of them expected a fall in GDP for 2023.

About 62% of those polled are small and medium-sized enterprises, the ones hit most by the rising operating cost due to the COVID pandemic and the Russian invasion of Ukraine, according to CNFI. The upcoming rises in electricity bills and fees for labor and health insurance coverage are set to weigh further on the affected businesses, it added.

Labor unions have called for minimum monthly salaries to be raised to NT$28,000, or an 11% growth, which would allow for President Tsai Ing-wen (蔡英文) to reach her objective of NT$30,000 before her second term ends. A hike of at least 4% can be expected as the Minimum Wage Review Committee convenes Friday, industry observers said.

Currently, the minimum monthly wage stands at NT$25,250 (US$831) and the minimum hourly wage is NT$168 (US$5.53).