eNewsletter

Taiwan’s Council of Labor Affairs (CLA) is contemplating raising the country’s minimum wage once again, after a recent hike in January 2011. Taiwan’s minimum wage was raised by 3.5% to NT $17,880 (USD $620) per month and to NT $98 per hour (USD $3.40) from January 1, 2011.  However, the CLA believes that the minimum wage in Taiwan is still too low. Taiwan’s minimum hourly wage of NT $98 (USD $3.40) is still lower than those in Hong Kong and Korea.

The CLA is currently compiling data to evaluate the possibility of raising Taiwan’s minimum wage by more than 3%. The decision will be made by the end of September 2011. If implemented, the new minimum wage hike will benefit 1 million Taiwan low-wage workers (or about 6% of Taiwan’s total workforce).

In response to the government’s call to raise wages, Taiwan’s financial sector has also embarked on wage hikes. Local Taiwanese banks and insurance companies recently enforced 3%-5% wage increases to be implemented from April 1, 2011. Some local Taiwanese financial institutions even raised wages by as much as 10% for top performers. Foreign banks in Taiwan, rather than engaging in similar wage hikes, are already paying higher salaries than their domestic counterparts. Bonuses too, are generous at foreign banks. Some foreign banks have offered as much as 14-month salaries to their employees in Taiwan after a profitable financial year.