Real wages, total earnings up in H1 2025, but inequality also higher

Taipei, Aug. 11 (CNA) Taiwan's real regular wages and real total earnings grew in the first half of 2025 at the fastest pace in years, rising 1.04 percent and 1.52 percent year-over-year, respectively, the country's statistics agency reported Monday.

Adjusted for inflation, regular monthly wages (salary and fixed allowances) grew 1.04 percent year-over-year in the six-month period to NT$43,609, the fastest rate of growth since the first half of 2020, Directorate General of Budget, Accounting and Statistics (DGBAS) data showed.

Real total earnings (salary, fixed allowances, bonuses, overtime pay, and other variable income) over the six-month period rose 1.52 percent to NT$364,464, the fastest pace of growth since 2021, DGBAS data showed.

The growth comes after relatively stagnant real income growth from 2022 to 2024.

Tan Wen-ling (譚文玲), deputy director of the DGBAS' Census Department, said the gains were driven mainly by three factors: an increase in the minimum wage, raises given by companies, and moderating inflation that prevented wage erosion.

Before adjusting for inflation, average monthly regular wages rose 2.99 percent in the first half of 2025 from the same period a year earlier to NT$47,608, but that income was less evenly distributed than ever.

The proportion of employees earning below the monthly average continued to rise, reaching 69.81 percent, a record high and up from 66.75 percent in 2020.

Tan said that while the average wage continued to rise, the number of employees earning below the average has also steadily increased.

In June, average regular earnings stood at NT$47,798 (US$1,597) per month, up 2.84 percent year-on-year, DGBAS data showed.

Average variable bonuses and overtime totaled NT$8,713, lifting average monthly earnings to NT$56,511, up 1.88 percent year-over-year.

In the same month, the median regular monthly wage was NT$38,218, up 2.45 percent from a year earlier, which the DGBAS said was a better indicator of how people actually felt about their pay levels.