On Oct. 3, the Ministry of Economic Affairs approved a 3.5 percent pay raise for employees of state-run enterprises — Taiwan Power Co (Taipower), CPC Corp (CPC), Taiwan Sugar Corp (Taisugar) and Taiwan Water Corp — which would take effect starting from next year. On Sept. 26, the Ministry of Labor announced a 3.18 percent increase in the nation’s minimum monthly wage to NT$29,500, along with the same percentage increase in the minimum hourly wage to NT$196. These measures, combined with President William Lai’s (賴清德) pledge to exempt those whose monthly income falls below NT$50,000 from income tax, reflect the government’s recognition of the efforts of grassroots laborers and employees of state-run enterprises, and would prove crucial in stabilizing people’s livelihoods and bolstering economic confidence.
Over the past few years, state-run enterprises have faced several challenges related to energy transitions, rising prices and global competition. Salary increases not only help boost employee morale, but also contribute to improving corporate efficiency and sustainable operations. Meanwhile, raising the minimum monthly and hourly wages improves the lives of workers — a concrete measure to enhance citizens’ well-being, deserving recognition and support.
The only shortcoming of these moves is that public sector employees and educators within the same public system would not see pay raises next year. While overall economic indicators are trending upward, and both private and state-owned sectors are making reasonable adjustments, the stagnation of civil servants’ salaries has understandably led to frustration and disappointment.
Taiwan’s economy has grown by more than 40 percent in the past 13 years, while prices have risen by 26 percent, and the minimum wage has increased by more than 50 percent, however, the salaries of educators and other civil servants have only risen by about 14 percent.
In the wake of inflation and rising cost of living, if the wages of civil servants continue to lag in the long term, this would not only give rise to systemic flaws, but also undermine the stability and attractiveness of the public service system.
Through its promotion of various pay-raise policies, the government has demonstrated a commitment to supporting and recognizing the contributions of workers. The next step should be to consider how educators and other civil servants could have their salaries adjusted to keep up with economic growth and price changes, and to avoid disparities within the system.
The implementation of pay-raise policies is a crucial step in recognizing workers and stabilizing society, allowing the public to feel the Lai administration’s care for laborers and employees of state-run enterprises.
However, it is also crucial that this consideration be extended to educators and civil servants who support the nation’s functioning, ensuring they receive attention and support. Pay-raise justice should be fully realized. The government, under the pretext of maintaining fiscal sustainability, should work to gradually narrow systemic gaps so that all who contribute to the nation could share the fruits of its growth.
Yang Chih-chiang is a teacher.
Translated by Kyra Gustavsen
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