Taiwan's commerce chamber president Hsu Shu-po says that the minimum wage should not increase in 2021. This contradicts Labor Minister Hsu Ming-chun, who says he hopes Taiwan will raise the minimum wage this year. Hsu says that while a national salary raise sounds like a positive development, the government must also take into account the COVID-19 pandemic's blow to the economy.
The monthly minimum salary in Taiwan is currently set at NT$24,000 (US$859), and the hourly minimum wage is NT$160 (US$5.73).
The commerce president says that while Taiwan's exports have increased 30-40%, domestic industries have shrunk by 30-50% in some areas. Even though restaurants can now provide indoor dining, they are still struggling to bring customers back. Hsu says hot pot restaurants saw their profits plummet by 90% during the Level 3 restrictions, and even since regulations have relaxed, they have only regained 20-30% of their business.
Hsu says he understands that employees would benefit from a pay raise, but that enforcing this adjustment will only hurt restaurants further. Hsu also says that applying a new wage standard to the manufacturing industry but not the service industry may be a better solution for now. Hsu says that if it's not possible to vary the minimum wage across different sectors, Taiwan should not face pressure to raise the minimum wage every year.