Taiwan’s real wages are calculated by dividing the nominal wage found by the Directorate-General of Budget, Accounting and Statistics by the consumer price index for the same year.
Real wages have been adjusted for price fluctuations and are a tangible reflection of how much money people have to spend.
Real wages have two components: regular income — monthly wages, performance bonuses and subsidies — and irregular income — which mostly comes from year-end bonuses paid before the Lunar New Year in January or February.
Salaries earned in the first two months of the year are clearly higher than during the rest of the year.
Irregular income refers to various bonuses other than the year-end bonus, such as bonuses for the three major holidays and employee bonuses, which are not paid by month. Therefore, wage discussions should never be limited to regular income alone.
Looking at real monthly wage data, the years from 1991 to 2017 can be divided into four different periods: 1991 to 1999 when Lee Teng-hui (李登輝) was president, the eight years of Chen Shui-bian’s (陳水扁) presidency from 2000 to 2007, Ma Ying-jeou’s (馬英九) presidency between 2008 and 2015, and the first two years of Tsai Ing-wen’s (蔡英文) presidency.
The crucial demarcation line for these four periods is an average real monthly wage of NT$46,000 (US$1,537).
During Lee’s presidency, average real monthly wages increased from NT$39,000 to NT$46,000, and this number increased by another NT$1,000 during Chen’s presidency.
However, shortly after Ma assumed office, the number quickly dropped to about NT$45,000, with the only exception being 2015 when it bounced back to more than NT$46,000.
The numbers during the other seven years of Ma’s presidency are all below the NT$46,000 standard set during Lee’s presidency, and there were even four years when the average real monthly wages dropped below NT$45,000.
During Tsai’s presidency, average real wages increased to NT$46,594 in 2016 and NT$47,271 last year, a record high.
Some might say that Ma’s presidency coincided with the global financial crisis, but Lee and Chen also encountered a lot of economic shocks: the Gulf War in 1991, the overnight devaluation of the yuan in 1994, the Asian financial crisis in 1997, the domestic financial crisis the following year, the bursting of the dot-com bubble in 2000, the global outbreak of SARS in 2003, and the domestic consumer credit and debt crisis in 2005.
Major events with a heavy impact on the economy presented themselves throughout these years.
Tsai is facing domestic economic problems: pension reform and a fiscal deficit impeding government investment, and shrinking private sector investment, which was supported almost solely by Taiwan Semiconductor Manufacturing Co over the past three years.
To make matters worse, long-term capital outflows have exceeded NT$10 trillion, highlighting the severity of the situation, as the nation’s GDP is about NT$17 trillion.
Under these circumstances, it is no easy task for the government to restore wages and rebuild forward momentum to the levels achieved during the Lee and Chen presidencies.
Instead of repeatedly using misleading ideas to beat down national confidence, the public should acknowledge the government’s efforts during the past two years.
Huang Ci-ru is an assistant professor.
Translated by Chang Ho-ming
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
The past few months have seen tremendous strides in India’s journey to develop a vibrant semiconductor and electronics ecosystem. The nation’s established prowess in information technology (IT) has earned it much-needed revenue and prestige across the globe. Now, through the convergence of engineering talent, supportive government policies, an expanding market and technologically adaptive entrepreneurship, India is striving to become part of global electronics and semiconductor supply chains. Indian Prime Minister Narendra Modi’s Vision of “Make in India” and “Design in India” has been the guiding force behind the government’s incentive schemes that span skilling, design, fabrication, assembly, testing and packaging, and
Can US dialogue and cooperation with the communist dictatorship in Beijing help avert a Taiwan Strait crisis? Or is US President Joe Biden playing into Chinese President Xi Jinping’s (習近平) hands? With America preoccupied with the wars in Europe and the Middle East, Biden is seeking better relations with Xi’s regime. The goal is to responsibly manage US-China competition and prevent unintended conflict, thereby hoping to create greater space for the two countries to work together in areas where their interests align. The existing wars have already stretched US military resources thin, and the last thing Biden wants is yet another war.