Taiwan's Directorate General of Budget, Accounting, and Statistics (DGBAS) reported that the median annual salary for employees in the industrial and service sectors reached NT$525,000 (about US$16,000) in 2023, a modest increase of 1.22%. This is the lowest growth rate in three years. On the other hand, the salary disparity ratio between the highest and lowest earners narrowed to 4.05, the lowest since 2012.
Statistical analysis shows the average annual salary for employees was NT$701,000 (US$21,500) a mere 0.71 increase, the weakest growth in seven years. The median-to-average salary ratio slightly increased to 0.749, gradually declining from 0.8 in 2013. The shrinking wage gap is attributed to faster salary growth among lower-income groups, with the difference between the highest and lowest 10% of earners reducing from 4.21 to 4.05 times.
The DGBAS explained that the median salary represents the midpoint when employees are arranged from lowest to highest earnings. For instance, in a survey of five individuals, the third person's salary would represent the median. This measurement provides a more accurate reflection of typical earnings compared to the average, which can be distorted by extreme values.
An official linked the 2023 salary trends to economic conditions. Weaker product demand and inventory reductions resulted in smaller bonuses in manufacturing while recovering consumer spending boosted wages in the service sector. The top 10% of earners had a slight salary decrease to NT$1,279,000 (US$39,000), whereas the bottom 10% saw an increase to NT$316,000 (US$9,700), contributing to reduced salary disparities.