The Ministry of Labor’s Minimum Wage Review Committee yesterday proposed raising the minimum monthly wage to NT$24,000 and the minimum hourly wage to NT$160.
The decision was reached at the committee’s annual session, with representatives from labor, management, government and academia taking part.
The committee said it would send the proposal to the Executive Yuan for approval.
Photo: CNA
The current minimum monthly wage is NT$23,800 and the minimum hourly wage is NT$158.
During yesterday’s discussion, management representatives raised concerns over economic losses caused by the COVID-19 pandemic, as well as potential increases in health and labor insurance fees next year, the committee said.
They also cited a pessimistic economic outlook for the third and fourth quarters, and expressed hope that the wage hike discussion could be postponed to November, but the appeal was opposed by labor representatives, the committee added.
Academic representatives proposed a conditional raise, in which wages would be raised if certain set targets are met by the end of the year, but labor representatives firmly opposed the idea, Taiwan Confederation of Trade Unions president Chuang Chueh-an (莊爵安) said.
After taking into consideration inflation and GDP growth, the labor representatives proposed that the minimum monthly wage be set at NT$24,100, Chuang said.
However, that figure would be higher than the NT$24,000 threshold set in the nation’s labor and health insurance schemes, meaning employers would also have to pay more for employees’ insurance fees, he said.
The labor side conceded and agreed on a monthly minimum of NT$24,000, he said.
Although the number does not meet labor’s goal of a 3 percent increase, it would be the fifth consecutive year that Taiwan would see an increase in the minimum wage, he added.
As 85 percent of companies in Taiwan are small and medium-sized enterprises, the wage hike and subsequent increases in health and labor insurance fees could lead many local companies to close, said a management representative, who declined to be named, adding that employees’ year-end and performance bonuses could decline.
Separately yesterday, a survey released by online job bank yes123 showed that 89.3 percent of workers supported a rise in the minimum monthly wage.
Of the 89.3 percent, 38.9 percent thought the minimum monthly wage should be raised to more than NT$30,000; 24.5 percent favored more than NT$25,000; and 14.8 percent supported an increase to more than NT$26,000, the poll showed.
As for the minimum hourly wage, 86 percent of respondents supported an increase, of which 38 percent said that it should be more than NT$190, 16.8 percent said it should be NT$180 and 14.9 percent said it should be more than NT$170, the poll showed.
On the employers’ side, 49.4 percent supported a monthly wage increase, and 50.6 percent opposed it; while 44.7 percent supported an increase in the minimum hourly wage, and 55.3 percent opposed it, the survey showed.
If the proposal is passed, 62.4 percent of employers said they are willingness to cooperate, while 41.7 percent said it would reduce their willingness to hire more staff, the poll showed.
Yes123 spokesperson Yang Tsung-pin (楊宗斌) said that export and import firms have both been affected by the pandemic, so they would prefer that wages be frozen.
However, the livelihood of many workers and minority groups have also been hit hard by the pandemic, with many of them having to rely on government subsidies to live, Yang said, adding that the spirit of setting a minimum wage is to guarantee a normal life for people.
The poll was conducted from July 30 to Wednesday last week via online questionnaires. It collected 1,210 valid responses from salaried employees and 935 valid responses from employers.
CHAOS: Iranians took to the streets playing celebratory music after reports of Khamenei’s death on Saturday, while mourners also gathered in Tehran yesterday Iranian Supreme Leader Ayatollah Ali Khamenei was killed in a major attack on Iran launched by Israel and the US, throwing the future of the Islamic republic into doubt and raising the risk of regional instability. Iranian state television and the state-run IRNA news agency announced the 86-year-old’s death early yesterday. US President Donald Trump said it gave Iranians their “greatest chance” to “take back” their country. The announcements came after a joint US and Israeli aerial bombardment that targeted Iranian military and governmental sites. Trump said the “heavy and pinpoint bombing” would continue through the week or as long
TRUST: The KMT said it respected the US’ timing and considerations, and hoped it would continue to honor its commitments to helping Taiwan bolster its defenses and deterrence US President Donald Trump is delaying a multibillion-dollar arms sale to Taiwan to ensure his visit to Beijing is successful, a New York Times report said. The weapons sales package has stalled in the US Department of State, the report said, citing US officials it did not identify. The White House has told agencies not to push forward ahead of Trump’s meeting with Chinese President Xi Jinping (習近平), it said. The two last month held a phone call to discuss trade and geopolitical flashpoints ahead of the summit. Xi raised the Taiwan issue and urged the US to handle arms sales to
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday said that it had confirmed on Saturday night with its liquefied natural gas (LNG) and crude oil suppliers that shipments are proceeding as scheduled and that domestic supplies remain unaffected. The CPC yesterday announced the gasoline and diesel prices will rise by NT$0.2 and NT$0.4 per liter, respectively, starting Monday, citing Middle East tensions and blizzards in the eastern United States. CPC also iterated it has been reducing the proportion of crude oil imports from the Middle East and diversifying its supply sources in the past few years in response to geopolitical risks, expanding
Pro-democracy media tycoon Jimmy Lai’s (黎智英) fraud conviction and prison sentence were yesterday overturned by a Hong Kong court, in a surprise legal decision that comes soon after Lai was jailed for 20 years on a separate national security charge. Judges Jeremy Poon (潘兆初), Anthea Pang (彭寶琴) and Derek Pang (彭偉昌) said in the judgement that they allowed the appeal from Lai, and another defendant in the case, to proceed, as a lower court judge had “erred.” “The Court of Appeal gave them leave to appeal against their conviction, allowed their appeals, quashed the convictions and set aside the sentences,” the judges
RSS