TAIPEI (Taiwan News) — The Ministry of Labor on Friday raised the monthly minimum wage by 3.18% and the hourly minimum wage by 3.16%. 

The labor ministry’s Minimum Wage Deliberation Committee increased the minimum monthly salary from NT$28,590 (US$936) to NT$29,500, and the hourly wage from NT$190 to NT$196, per CNA. The proposal will next be submitted to the Cabinet for approval.

After nearly five hours of debate between labor and management, the committee decided to raise the minimum wage for the 10th consecutive time, per ETtoday. The committee also recommended that industries provide supporting measures in response to international factors such as US tariffs.

Under the administrations of former President Tsai Ing-wen (蔡英文) and current President Lai Ching-te (賴清德), Taiwan’s minimum wage has increased for nine consecutive years, raising the monthly salary from NT$20,008 in 2016 to NT$28,590 in 2025, an increase of about 42.9%. The hourly wage rose from NT$120 to NT$190, an increase of roughly 58.3%. 

Based on experience, the adjustment is usually calculated using the annual growth rate of the Consumer Price Index and half of the GDP growth rate, per Yahoo News. The market had initially expected next year’s increase to fall between 3% and 5%.

Starting in 2024, the Minimum Wage Act replaced the previous basic wage review system. According to the law, the annual CPI growth rate serves as a reference indicator to maintain workers’ necessary purchasing power, and 10 additional indicators are specified for potential consideration.