TAIPEI (Taiwan News) — Taiwan's Ministry of Labor on Thursday (Sept. 1) decided to raise the monthly minimum wage to NT$26,400 (US$865) and the basic hourly rate to NT$176.

During a meeting of the Minimum Wage Review Committee, which consisted of representatives from labor, capital, government, and academia, the decision was made to raise the minimum monthly wage from NT$25,250 to NT$26,400, while the minimum hourly rate was increased from NT$168 to NT$176.

Labor groups such as the Taiwan Confederation of Trade Unions had been pushing for a nearly 11% raise to NT$28,000, arguing it would take a major step toward President Tsai Ing-wen’s (蔡英文) goal of reaching a NT$30,000 minimum wage before her term expires. Meanwhile, businesses called for the minimum wage to only be increased by less than 3%, amid declines in revenues.

The resulting increase was 4.55%, lower than what labor groups had asked for, higher than what businesses had pushed for, but closer to the latter's wishes. The committee has submitted its plan to the Cabinet, which usually approves such wage hikes, and it is expected to go into effect at the start of 2023.