The planned minimum wage hike will increase the financial burden on employers by NT$16.29 billion (US$537.62 million) per year, including higher insurance premiums based on the higher salaries, the Ministry of Labor said on Monday.
The ministry’s Basic Wage Deliberation Committee on Friday last week proposed raising the minimum monthly wage from NT$21,009 to NT$22,000, a 4.72 percent increase, and the minimum hourly wage from NT$133 to NT$140.
The following day the ministry said the increases would be implemented on Jan. 1 next year, if they were approved by the Cabinet and would benefit 1.67 million employees who are paid by the month and 390,300 who are paid by the hour.
The burden on employees and the government would rise by NT$982 million and NT$757 million per year respectively, it said.
The rise will also increase the contributions of employers, employees and the government to labor insurance, employment insurance and national health insurance premiums, which are calculated based on employees’ pay levels.
Employees who will receive higher minimum monthly wages and their employers will see their burdens increase by NT$774 million and NT$10.86 billion respectively, with the burden on the government increasing by NT$574 million, the ministry said.
Employees who are paid by the hour and their employers will see increases of NT$208 million and NT$5.43 billion respectively, with the burden on the government increasing by NT$183 million, it added.
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