TAIPEI (Taiwan News) — Labor groups on Thursday said upcoming deliberations on Taiwan’s minimum wage should not be derailed by US tariffs, which business leaders have cited as a reason to freeze electricity rates and limit or pause wage hikes.

Economics Minister Kung Ming-hsin (龔明鑫) has proposed adjusting the formula used since 2017 to calculate the minimum wage.

Low salaries remain a serious issue in Taiwan, but US tariffs cannot be an excuse, labor groups said, noting that other countries also face tariffs yet continue to raise wages. The Taiwan Labor Front said international trade costs and inflation directly affect workers’ purchasing power, per CNA.

The group called for the minimum wage to reach or surpass NT$30,000 (US$978). Last January, the official monthly minimum rose 4.08% to NT$28,590 from NT$27,470 following a decision by the wage committee in September. The hourly minimum increased from NT$183 to NT$190, marking the ninth consecutive annual hike since 2016.

The front added that governments sought to stimulate domestic demand by raising wages, citing examples from Japan, South Korea, Vietnam, the Philippines, Australia, Canada, Germany, France, and the UK. Taiwan’s wage hikes in recent years have not triggered business outflows or higher unemployment, with younger workers aged 15 to 29 benefiting most.

The Confederation of Taipei Trade Unions said the government should do more to boost domestic consumption, as low-wage service sector workers in cities spend too much of their income on rent.

The 21-member Minimum Wage Deliberation Committee includes representatives from labor, employers, academia, and government, and operates under the Minimum Wage Act, which took effect on Jan. 1, 2024.