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Minimum Wage Expected to Rise 3% Next Year, Monthly Salary May Reach NT$29,450

Minimum Wage Expected to Rise 3% Next Year, Monthly Salary May Reach NT$29,450

The Ministry of Labor is set to convene a "Minimum Wage Review Committee" in the third quarter of this year to determine the minimum wage for 2026. Despite uncertainties due to U.S. equivalent tariffs and geopolitical factors, there is an expectation that next year's minimum wage will increase by approximately 3%.

The current minimum wage is NT$28,590 per month and NT$190 per hour. If the wage is raised by 3% and rounded, the monthly salary will reach NT$29,450, and the hourly wage will be NT$196, reflecting increases of NT$860 and NT$6, respectively.

According to the Minimum Wage Act, starting in 2024, the year-on-year increase in the Consumer Price Index (CPI) will be factored into the calculations, ensuring that the CPI adjustments are fully reflected. There are 11 factors under consideration, including GDP distribution ratios, labor productivity index year-on-year increases, average labor salary increases, and minimum living expenses.

Generally, the main focus will be on the year-on-year CPI increase and economic growth rate. An expert familiar with the review mechanism indicated that despite uncertainties due to U.S. tariff policies, minimum wages will continue to increase to meet the basic living needs of workers. The CPI year-on-year increase will be fully reflected; however, the precise allocation of economic growth to workers may be subject to change based on the economic outlook.

The Directorate-General of Budget, Accounting and Statistics recently revised this year's economic growth forecast to 3.1%, driven by a surge in demand in the first half of the year, but the forecast for the second half has dropped to 1%. This year's CPI year-on-year increase is projected to be 1.88%, below the 2% alert line, leading to widespread acceptance of the reflection of this increase in the minimum wage adjustment. The Ministry of Labor plans to hold the review committee by September at the latest, with last year's review not providing any suggested adjustment ranges.