Taiwan to raise minimum monthly wage to NT$29,500

Taipei, Sept. 26 (CNA) The Ministry of Labor (MOL) has announced that the minimum monthly wage will rise for a 10th consecutive year in 2026, though by an amount that will fall short of labor groups' expectations.

Starting on Jan. 1, 2026, the monthly minimum wage will rise 3.2 percent to NT$29,500 (US$967), while the minimum hourly wage will increase by the same percentage from NT$190 to NT$196, the MOL said Friday.

These wage hikes still require the approval from the Executive Yuan, which is expected to be given.

The announcement came after a review conducted by the Minimum Wage Deliberation Committee on Friday that took into account factors such as the increase in the Consumer Price Index (CPI) and gross domestic product growth.

The Directorate General of Budget, Accounting and Statistics (DGBAS) recently raised its 2025 GDP growth forecast to 4.45 percent from an earlier estimate of 3.10 percent, citing better-than-expected export performance. The DGBAS also forecast that the Consumer Price Index will grow 1.76 percent in 2025.

Labor groups felt the wage increase should have been closer to 4 percent. They had urged the MOL to raise the minimum monthly wage to NT$29,734 and the minimum hourly wage to NT$198 to help workers deal with rising living costs and share the benefits of economic growth.

Before Friday's meeting, the groups voiced concern that the government would use America's tariff policy, which currently imposes 20 percent duties on many goods imported into the United States from Taiwan, to limit the wage increase.

It was the second minimum wage increase since President Lai Ching-te (賴清德) took office on May 20, 2024.

The previous eight hikes occurred under former President Tsai Ing-wen (蔡英文).