The Labor Ministry released a statement on Monday regarding the first minimum wage consultation meeting since the law took effect last year, which is scheduled for late June. The ministry expressed their hope that the meeting will accommodate a diversity of opinions and that all parties can establish a positive working relationship.
The Minimum Wage Act stipulates that a 21-member review committee will meet in the third fiscal quarter of each year. The committee will feature representatives for labor and capital, a number of academic experts, and members of the Economic Affairs Ministry and the National Development Council, as well as Labor Minister Ho Pei-shan (何佩珊). The consultation meeting occurring at the end of the month precedes the review meeting and features additional representatives.
Per the Labor Ministry, the current Minimum Wage Act clearly outlines the social and economic indicators that must be factored into the review of the minimum wage. The review mechanism is also more comprehensive, incorporating the consumer price index annual growth rate, which is closely related to the actual purchasing power of workers, in addition to a number of other indicators such as wages among different industries and changes in consumer and producer prices.
The Cabinet’s Directorate-General of Budget, Accounting and Statistics predicts this year’s consumer price index will exceed the 2% warning level set by the central bank for inflation. The economic growth rate has also been revised upward due to strong demand for AI. Taking these factors into consideration, the minimum wage is expected to increase by 4% this year. Labor Standards and Equal Employment Director Huang Wei-chen (黃維琛) said that the committee will reach a decision in coming months.