TAIPEI (Taiwan News) — Nearly 60% of Taiwanese companies plan to raise salaries in the first quarter of 2026, even as hiring cools, reflecting a shift toward targeted talent retention and filling key positions, according to a survey by 1111 Job Bank.

The survey found that 64.1% of companies felt their business performance this year met expectations, while 8.9% said results surpassed expectations, for a combined positive rating of 73%, per CNA. Some 48.3% of firms were satisfied with profitability.

In the first quarter of 2026, 44% of companies still plan to recruit, mainly entry-level employees (46%) and professional technical talent (32.5%). The highest demand is in information technology, construction and real estate, hospitality, health care and environmental sanitation, and traditional manufacturing.

Tseng Chung-wei (曾仲葳), spokesperson for 1111 Job Bank, said the tech industry continues to expand in AI, high-performance computing, cybersecurity, and advanced semiconductor processes, maintaining strong demand for R&D and systems integration talent. Food and beverage, service, and manufacturing sectors face structural labor shortages and must continue hiring to sustain operations, despite cautious economic conditions.

Some 59.8% of companies plan to raise wages in the first quarter, up 7.3 percentage points from last year and the highest level since 2022. Among them, 39.4% will implement company-wide increases.

The average expected pay raise is 4.1%, similar to last year. Larger increases are concentrated in sales, customer service, maintenance, processing and technical operations, and management, administrative, and HR-related roles.

Factors influencing salary adjustments are primarily business performance and individual performance (both 45%), followed by seniority, talent retention needs, and professional skills. Tseng added that companies often supplement salaries with performance bonuses, year-end bonuses, employee trips, and vacation policies exceeding labor law requirements to enhance retention.

The survey also highlights a shift in corporate strategy. While the proportion of companies planning to hire dropped from 57% last year to 44%, willingness to raise salaries increased, showing a move from large-scale expansion to filling key vacancies and retaining essential talent.

Despite uncertainties such as US tariffs, geopolitical risks, and industrial transformation, only 26.7% of companies said they would delay salary increases due to economic uncertainty.

When asked about the minimum wage increase in January to NT$29,500 (US$940) per month and NT$196 per hour, 34% of companies said higher costs would affect how much they can increase salaries. However, 65.5% said their pay policies would remain unaffected.

Chang Chuan-kai (張篆楷), general manager of 1111 Job Bank, emphasized that the future challenge for companies is not just hiring or raising salaries, but identifying talent that can grow with the organization amid limited resources. Job seekers should evaluate whether their skills align with industry trends to boost long-term competitiveness.

The survey was conducted by 1111 Job Bank using purposive sampling of corporate HR personnel from Dec. 5 to 25, 2025, with 1,089 valid responses.