Taiwan labor groups accept compromise of 3.18% minimum wage hike

Taipei, Sept. 26 (CNA) Labor groups said Friday they were not fully satisfied with the government's 3.18 percent minimum wage increase for 2026 but accepted it as a compromise, while employers welcomed the decision.

The monthly minimum wage will rise to NT$29,500 (US$967), and the minimum hourly wage will increase from NT$190 to NT$196, the Ministry of Labor (MOL) said after a review meeting that included labor, business, government, and academic representatives.

The hike will benefit nearly 2.47 million workers nationwide -- about 1.74 million collecting a monthly salary and 730,000 hourly-wage workers, the MOL said.

Tai Kuo-jung (戴國榮), president of the Taiwan Confederation of Trade Unions, said labor groups had pushed for a 4 percent increase, while employers wanted to cap it at 3 percent.

The main debate centered on how to share the benefits of economic growth, Tai said, noting that employers argued that growth was concentrated in export-oriented industries, while sectors like services -- which employ the majority of minimum-wage workers -- lagged behind.

"Although we are not fully satisfied, we can accept the result as a compromise," Tai said.

Yu Yu-chi (余玉枝), a business consultant at the Chinese National Association of Industry and Commerce who represented employers, said the final decision of a 3.18 percent increase "satisfied all parties" and allowed the meeting to conclude on a positive note.

Labor Minister Hung Sun-han (洪申翰) said after the meeting that the adjustment factored in inflation, GDP growth, and trade uncertainties such as tariffs imposed by the United States.

The MOL highlighted that over the past decade, the monthly minimum wage has risen from NT$20,008 in 2016 to NT$29,500, up 47.4 percent, while the hourly wage has grown 63.3 percent from NT$120 to NT$196.

The latest increase will also lead to higher labor insurance contributions, resulting in additional premiums of NT$1.15 billion for workers, NT$19.9 billion for employers, and NT$768 million for the government, according to the MOL.