Committee to decide on wage increase

• By Jake Chung / Staff writer, with CNA

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The Minimum Wage Review Committee is to meet today to decide whether to increase the minimum wage next year, with Minister of Labor Hung Sun-han (洪申翰) saying the monthly rate could top NT$30,000 (US$946) and the hourly rate NT$200.

The committee — comprising representatives of labor groups, businesses, the government and academia — is required by the Minimum Wage Act (最低工資法) to meet in the third quarter each year. Changes to the minimum wage that are approved take effect on Jan. 1 the following year unless the Executive Yuan sets a different date.

The minimum wage is NT$29,500 per month and NT$196 per hour. A rise today would mark the 11th consecutive annual hike.

Minister of Labor Hung Sun-han, right, speaks during an interview with Pop Radio host Huang Wei-han in Taipei yesterday.

Photo: Screen grab from Pop Radio

Business groups have called for an increase of about 3 percent.

Labor groups are seeking 7.77 percent, calculated by adding the central bank’s forecast of 2.03 percent inflation plus half of its GDP forecast of 11.48 percent.

They say that workers should be protected against rising prices and share in economic growth.

Labor and business groups typically put forward their preferred figures before the annual review, but their proposals should be backed by sound reasoning, Hung said.

“The review is not simply a matter of adding two figures and dividing by two,” he said in a radio interview with host Huang Wei-han (黃暐瀚).

The committee would consider concerns expressed by labor groups that the minimum wage should provide workers with a basic standard of living with dignity, while taking into account the wide differences between industries, he said.

Directorate-General of Budget, Accounting and Statistics data showed that the consumer price index (CPI) rose 2.04 percent year-on-year in August, adding to the pressure on low-paid workers, Hung said.

After gathering views from across sectors over the past two months, business groups have also agreed that the minimum wage should be raised, he said.

The economy is forecast to grow 11.05 percent this year, the highest rate in 39 years, adding to expectations of an increase.

However, the committee said that the adjustment should use CPI growth as a baseline while taking industry differences into account.

Manufacturing and other industries benefiting from growth in electronics and information and communications technology products have performed much better than other sectors, it said.

The committee is scheduled to meet at 10am today at the ministry in Taipei.

The Taiwan Confederation of Trade Unions has scheduled a news conference outside the ministry at 9am.

The groups said that it had offered a compromise proposal, but business representatives had failed to reach a consensus, prompting it to keep its demand at a 7.77 percent increase.