The Ministry of Labor yesterday proposed raising the minimum wage by 4.05 percent next year in its efforts to help workers cope with surging inflationary pressure, marking an eighth straight annual increases if it is approved by the Executive Yuan.
It would mean the minimum wage would have surged more than 38 percent since 2016.
The ministry’s proposal came after the Basic Wage Commission concluded that the minimum monthly wage should be increased to NT$27,470 next year from NT$26,400 in response to surging inflation and higher prices of life’s necessities, a ministry statement said.
Photo: CNA
The hourly minimum wage should rise to NT$183 next year from NT$176, it said.
The commission, which is composed of government officials and representatives of workers and employers, believes that employers should share a fairer proportion of economic growth with their employees, the statement said.
About 2.39 million workers would benefit from the increase, the ministry said.
The consumer price index (CPI) last month advanced 2.52 percent year-on-year, exceeding the central bank’s target of 2 percent, as summer vacations drove entertainment costs higher, while bad weather pushed up food prices, the Directorate-General of Budget, Accounting and Statistics said.
The minimum wage increase of 4.05 percent is lower than the 6 percent requested by the Taiwan Confederation of Trade Unions (全國產業總工會), but the labor association considered a 4 percent increase acceptable.
Local industrial groups yesterday said that the proposed increase greatly exceeded their expectation, as the service sector and exporters are still slowly recovering from the adverse impact of the COVID-19 pandemic over the past three years.
Local businesses are also facing pressures from soaring operating costs and dim economic prospects, General Chamber of Commerce (商業總會) president Paul Hsu (許舒博) said in a statement yesterday.
Geopolitical tensions have also pushed up costs of energy and raw materials, Hsu said.
The chamber is concerned that faster-than-expected minimum wage increases could further stoke inflation, as increased labor costs would add to the already high cost structure, Hsu added.
The Chinese National Association of Industry and Commerce (CNAIC, 工商協進會) said that higher labor costs would stoke inflation and therefore lessen the benefits of the rise in salaries.
Local businesses are facing mounting pressure to manage costs, the CNAIC said, adding that they also have to allocate extra spending on carbon emission reductions as fighting climate change becomes a trend and responsibility.
To mitigate surges in operational costs, the CNAIC suggested that the government should consider maintaining electricity rates at a meeting to be held later this month. It also suggested extending the tax breaks on imports of key raw materials.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old