Basic-Wage Hike Will Benefit 980,000 Taiwanese Laborers

In 2013, Taiwan's basic monthly pay will be increased by NT$267, or 1.42%, to NT$19,047 and basic hourly pay will be increased by 5.82 to NT$109, resolved the basic wage screening committee of the Council of Labor Affairs (CLA) yesterday (Aug. 9). The wage hike is expected to benefit 980,000 laborers, while boosting the cost of enterprises by NT$5 billion, especially in the fields of accommodations and dining businesses.

The CLA noted that the hike of the basic monthly wage hike is based on the 1.42% increase of consumer price index (CPI) last year. At the scale, the basic monthly wage will advance to NT$19,047, compared with NT$18,780 now. The hourly wage will rise by NT$6 to NT$109, which will be raised further to NT$115 at least in 2014, barring major changes in domestic and international economic situation. The wage-hike program will be submitted to the Executive Yuan (the Cabinet) for approval next week.

The CLA estimated that the wage hike will benefit 980,000 laborers, including 757,000 local laborers and 226,000 foreign laborers. Sixty-five percent of laborers with monthly pay below NT$19,047 are working in the service sector, especially in the fields of accommodations and dining, other services (beauty parlor) and supporting services (such as security). Wholesale and retail business will also receive considerable impact.

The CLA estimated that the wage hike will boost total cost by NT$5.565 billion, including labor insurance, labor retirement program, and payroll, of which employers will bear NT$5.073 billion, laborers NT$183 million, and the government NT$309 million.

During the meeting of the basic wage screening committee, labor and employer representatives have sharp difference in their standing. Employer representatives proposed to maintain the basic wage unchanged, while labor representatives put forth three proposals, with the scales of basic-wage hikes reaching 23.3%, 3.44%, and 2.89%, respectively.

source & copyright: CENS