Taiwan’s top economic think tank, the Taiwan Institute of Economic Research (TIER), says that the government’s plan to raise the minimum wage is within reasonable limits. That’s the word from the institute’s leading economist Gordon Sun on Friday.
Sun’s comments come after the labor ministry announced the plan to raise the minimum wage a day earlier. Under the plan, the minimum monthly salary will be raised 5% from NT$20,008 (US$666) to NTS$21,009 (US$700).
Sun said that while the percentage is higher than expected, it is not the largest adjustment Taiwan has seen. Sun said however that the increase could affect the manufacturing and retail sectors when the adjustment takes effect next January.
“The [hike] could have a slightly bigger impact on industries that rely on more migrant workers and on the manufacturing industry in central and southern Taiwan. Other businesses that pay part-time workers minimum wage, such as petrol stations, restaurants, and convenience stores will also be affected," said Sun.
Sun said his think tank will monitor the decision’s impact on businesses.