Could Taiwan raise its minimum wage next year? A committee has just convened to discuss this question. But opinion among committee members is sharply divided, and the bigger question seems to be not whether Taiwan could raise its minimum wage, but rather whether it should.
Taiwan’s minimum monthly wage now sits at NT$24,000 (US$855), and its minimum hourly wage at NT$160 (US$6). While business owners seem satisfied with this amount, labor groups say it’s time for employers to pay out more.
A committee made up of seven labor group representatives, seven representatives of business groups, and various government officials and experts met for the first time on Friday to try to hammer out some consensus on this issue. In particular, the committee is tasked with looking at whether Taiwan should raise its minimum wage next year.
Finding common ground may be tough. Head of the Taiwan Federation of Trade Unions Chiang Chien-hsin says that labor groups have already compromised enough. Chiang said that last year, when business owners said the economy was bad, workers accepted a token increase in the minimum wage of less than 1%.
Chiang says that in the end, though, Taiwan’s economy grew by 3% last year, and growth this year is projected to reach around 6%. Chiang says that even countries hit much worse by COVID-19, countries like Japan and South Korea, have raised their minimum wages. Therefore, Chiang says that both Taiwan’s minimum monthly and hourly wages should be raised by 10%.
Head of the National Association of Small and Medium Enterprise You Yung-chuan disagrees. You says that the COVID-19 pandemic will have a delayed effect on Taiwan, meaning that there is no guarantee of a good economy next year.
You says that a shortage of labor and higher prices for raw materials are already putting enough pressure on businesses, and that the minimum wage should therefore stay where it is.
And what is the government’s position in all this? Labor Minister Hsu Ming-chun said before the meeting that the administration of Tsai Ing-wen has raised the minimum wage every year since taking office. She said the fruits of economic growth should be shared, and that she hopes to give a raise in the minimum wage as a present to workers just before National Day.