The Minimum Wage Act (最低工資法) will adequately protect workers, Minister of Labor Hsu Ming-chun (許銘春) said yesterday after labor groups asked how annual changes in the consumer price index (CPI) would be taken into account when the rate is being decided.
The act, which was passed by the legislature on Tuesday, instructs the Ministry of Labor to convene a 21-member review committee, which is required to meet in the third quarter each year to review the minimum wage and recommend possible adjustments based primarily on CPI changes.
Labor groups, including the New Kaohsiung Confederation of Trade Unions, the Taoyuan Confederation of Trade Unions and the Taoyuan Flight Attendants’ Union, on Tuesday said that the law should require minimum-wage hikes to be at least as high as CPI growth.
Photo: CNA
Hsu told reporters that there is no law anywhere in the world stipulating that minimum-wage hikes must not be lower than a certain index and that passing such a law would mean less flexibility when the new 21-member review committee is deciding what the minimum wage should be set at.
CPI growth is a “must” reference, she said, adding that it has been used when adjusting the minimum wage in recent years.
In addition to CPI, 10 other indicators will also be considered, including per capita income, GDP and minimum living expenses, she said, adding that this method would provide workers with adequate minimum wage protection.
Separately, Premier Chen Chien-jen (陳建仁) also affirmed that CPI growth must be taken into account during adjustments.
The 19-article act largely formalizes and expands on the mechanism the government already uses to adjust the minimum wage.
In addition to introducing how the minimum wage should be adjusted and the establishment of a review committee, the law states that any employer found to be paying its employees less than the minimum wage will be fined from NT$20,000 to NT$1.5 million (US$634 to US$47,580), their names will be published and they have to comply with regulations within a mandated period.
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