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Average wage hike expected to hit 3.5% in H2: survey

2019/07/13 20:39:00

Taipei, July 13 (CNA) About 54 percent of employers in Taiwan are planning to raise wages in the second half of the year, with the average wage hike expected to hit 3.5 percent, according to a survey by online job bank yes123.

Citing two surveys conducted from June 13 to 25, yes123 said the 3.5 percent average raise was below the expectations of employees, who are hoping for a roughly 6 percent salary increase of NT$2,477 (US$79.39) per month based on the average regular wage of NT$41,767 in April, according to Taiwan's statistics bureau.

The survey targeting employers found about 54.4 percent of respondents saying they are planning to raise wages in the second half of the year, down from 57.4 percent in a similar survey conducted a year earlier.

Of the 54.4 percent, just over four in five (82.4 percent) said they will raise salaries based on employees' performance, while under one in five (17.6 percent) said they will increase wages for all employees regardless of performance, down considerably from a year earlier, the survey found.

Yes123 said the figures showed employers are more cautious about their business prospects and less willing to raise wages as Taiwan's economy shows signs of slowing down amid global uncertainty created by trade friction between Washington and Beijing.

In May, the Directorate General of Budgeting, Accounting and Statistics lowered its forecast for Taiwan's 2019 gross domestic product (GDP) growth by 0.08 percentage points from its February estimate to 2.19 percent, citing falling exports.

According to the survey, the information technology industry showed the highest willingness to raise wages (70.8 percent), ahead of the old economy sector (66.7 percent), the financial services sector (64.3 percent), the medical care and biotech sector (58.3 percent) and the cultural and education sectors (56.5 percent).

The job bank said 23.2 percent of employers said they were upbeat about the economy in the third quarter, while 19.2 percent said they were downbeat. The figures translated into a net optimism index of 4 percent, down from 4.8 percent in an earlier survey for the second quarter.

The survey showed about 89 percent of employers are planning to hire new workers in the third quarter, up from 86.9 percent in a similar poll conducted in April, but down from 91.5 percent in another survey conducted in June 2018.

The other survey targeting employees found 15.3 percent of them saying they were optimistic about the economy and 27 percent said they were pessimistic about the economy, translating to a net optimism index of negative 11.7 percent, compared with negative 9.1 percent in an earlier survey conducted in April.

A total of 875 valid questionnaires from employers were received, with a confidence level of 95 percent and a margin of error of plus or minus 3.31 percentage points.

Meanwhile, the job bank collected 1,356 valid questionnaires from employees with a confidence level of 95 percent and a margin of error of plus or minus 2.66 percentage points.

(By Tsai Peng-min and Frances Huang)
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