Regular wage growth hits highest level in 26 years

Taipei, Jan. 12 (CNA) Average monthly regular wages in Taiwan grew 3.09 percent from a year earlier in the first 11 months of 2025, the highest rate of growth for the period in 26 years, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Monday.

The average monthly regular wage, which consists of regular salary and fixed bonuses and allowances, was NT$47,837 (US$1,514) in the 11-month period, up 3.09 percent year-on-year, the highest rate of growth since 1999 when the increase was 3.27 percent.

After adjusting for inflation, average real monthly regular wages grew 1.38 percent during the same period to NT$43,671.

It was the highest pace of growth since an increase of 1.69 percent in 2020, and ended a four-year period of stagnation that had resulted in real regular monthly wages averaging NT$10 less per month in 2024 than in 2020.

Average earnings, comprised of regular wages and all other income such as overtime pay and variable bonuses, totaled NT$698,082 in the 11-month period (or NT$63,462 per month), up 4.06 percent from a year earlier.

Adjusted for inflation, real average earnings totaled NT$637,285 (or NT$57,935 per month), up 2.34 percent from 2024, the highest growth since real average earnings rose 3.06 percent in 2015.

In November alone, average monthly regular wages rose 3.08 percent from a year earlier to NT$48,139, while average monthly earnings rose 4.96 percent to NT$58,103.

Tan Wen-ling (譚文玲), deputy director of the DGBAS Census Department, said the increase in regular wages reflected an AI boom that led many electronics component and computer-optoelectronics companies to raise their employee pay levels to retain talent.

In the 11-month period, the average earnings in the electronics component industry totaled NT$1.24 million, up 8.96 percent, while the computer/optoelectronics sector saw average earnings rise 2.85 percent to NT$1.03 million, the DGBAS said.

The median monthly regular wage rose 3.02 percent from a year earlier to NT$38,360 during the January-November period, while after being adjusted for inflation, the real median monthly wage also rose 1.31 percent to NT$35,019.

As of the end of November, the number of people employed in the industrial and service sectors rose 0.11 percent to 8.56 million, while average monthly working hours totaled 163.6 hours, with average overtime working hours at 8.9 hours.

Tan said that although the local tech sector continued to benefit from AI development, the old economy sector still lagged behind due to the United States' tariff policies and global supply gluts for basic manufactured goods.

Tan said the textile, plastics and auto/auto part sectors reported falls in their number of employees and declines in their workers' overtime hours.