Wage hike for 2025 expected to cost NT$23.5 billion

Taipei, July 23 (CNA) A wage hike promised to civil servants, military personnel and public school teachers in 2025 is expected to have a price tag of NT$23.5 billion (US$715.42 million), the Executive Yuan's Directorate-General of Personnel Administration (DGPA) said on Monday.

The DGPA released a press statement estimating that 730,000 people will benefit, after Premier Cho Jung-tai (卓榮泰) announced the 3-percent hike earlier that day.

The estimated cost is not final and will ultimately be determined by the Directorate General of Budget, Accounting and Statistics, the statement said.

The hike aims to ensure the expected benefits from the 3.94 percent of economic growth anticipated for 2024 are shared with civil servants, military personnel and public school teachers, the statement said.

The scale of the hike also accounts for the consumer price index (CPI) being forecast to grow 2.07 percent in 2024.

Basic pay, seniority pay, allowances for certain professionals and pay for supervisors will be adjusted, the DGPA said.

The Executive Yuan has increased salaries for civil servants, military personnel and public school teachers by 4 percent in 2024. The DGPA noted that wage hikes for two consecutive years have not occurred since 1999.

During his Monday announcement, Cho also said that he hoped the government's wage hike would prompt the private sector to raise salaries for employees as well.