萬國法律事務所

Taiwan’s Premier, Jiang Yi-huah (江宜樺), announced that the proposal to increase the monthly minimum wage from NT$ 18,780 to NT$ 19,047 has been approved and is effective from April 1, 2013.

According to the Directorate-General of the Budget, Accounting and Statistics Department of Taiwan’s Executive Yuan, the growth rate of gross domestic product (GDP) in the fourth quarter of 2012 was 3.72 %, and although the first-quarter 2013 GDP growth will not be announced until this May, it is expected to maintain a growth rate exceeding 3 percent. A growth rate exceeding 3 percent for two consecutive quarters indicates a revival of Taiwan’s economic situation and thus justified the ratification of the minimum wages hike.

Citing the Bureau of Labor Insurance (BLI), the Council of Labor Affairs (CLA) Vice Minister, Hao Feng-ming (郝鳳鳴), said that approximately 1.76 million laborers, including domestic and foreign laborers, will benefit from this hike. Because employers are responsible for paying a portion of labor insurance premiums, national health insurance premiums, and labor pension contributions, there will be an increase of roughly NT$ 2.6 billion in costs for employers as a consequence of the minimum wage adjustments. In addition, the government and employees’ costs will increase respectively by NT$ 130 million and NT$ 180 million.

BLI President, Luo Wuu-hu (羅五湖), stated that the notice regarding the minimum wage adjustments will be given along with the delivery of the paying-in slip of the labor insurance premiums.