Taiwan minimum wage adjustment negotiations

In Taiwan, the Ministry of Labor initiated deliberations to adjust the minimum wage for 2027. Labor Minister Hung Shen-han indicated a high probability that the monthly minimum wage would exceed 30,000 TWD and the hourly rate would surpass 200 TWD, noting that inflationary pressures were increasing living costs for low-income workers. At the time of initial reports, a gap existed between employer proposals for a 3% increase and labor group demands for a 7.77% increase.

Following these deliberations, Taiwan set a minimum wage increase of 4.745% for 2027, resulting in a monthly salary of NT$30,900. This decision drew criticism from the Taiwan Labor Front, which argued that government subsidies intended to help businesses cover rising labor costs might discourage companies from pursuing digital and technical transformations. The group suggested that public funds should instead be directed toward talent training and equipment upgrades.

The Minimum Wage Deliberation Committee finalized the adjustment, raising the monthly wage from 29,500 TWD to 30,900 TWD and the hourly rate from 196 TWD to 205 TWD. Premier Cho Jung-tai noted this represents the largest monthly increase since 2016, expected to benefit approximately 2.61 million workers. The Ministry of Labor reported that the service sector will account for 65% of beneficiaries, with the industrial sector making up 34%. While the move coincides with projected 11.05% GDP growth for 2026, the government acknowledged challenges for small and medium-sized enterprises and pledged continued support programs to assist these businesses in supporting grassroots employees.