Real regular wages post highest January growth in 11 years

Taipei, March 16 (CNA) Taiwan's real regular wages recorded their fastest growth for the month of January in 11 years as steady pay raises outpaced inflation, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Monday.

The average monthly regular wage among employees in the industrial and service sectors reached NT$48,819 (US$1,523) in January, up 2.9 percent from a year earlier, data compiled by the DGBAS showed.

It was the largest increase for the month in 16 years, the DGBAS said.

After adjusting for inflation, average real regular wages rose 2.18 percent year-over-year in January, the fastest growth for the month since 2016, according to the DGBAS.

The median regular wage was NT$39,136.

Real average monthly earnings, however, fell 31.38 percent from a year earlier, due to the timing of the Lunar New Year holiday.

Average monthly earnings, which includes both regular wages and non-regular income such as overtime pay and bonuses, was NT$76,495 in January, down by more than 30 percent from a year earlier.

Speaking with reporters, DGBAS Census Department Deputy Director Tan Wen-ling (譚文玲) attributed the growth in regular wages in January to a combination of a government-mandated minimum wage hike and proactive pay raises by private employers.

The significant fluctuation in total earnings, which fell over 30 percent, was largely due to the calendar, she said.

Because the Lunar New Year fell in late January and early February in 2025 but in mid-February this year, there were fewer working days in January 2025, leading to a lower base of comparison for regular wages, she said.

The earlier holiday in 2025, however, meant more year-end bonuses paid in January 2025 than in January 2026, creating a higher comparison base for real average monthly earnings.

Despite the positive momentum, Tan cautioned that rising geopolitical tensions could affect future wage growth, citing the rise in international oil prices resulting from the U.S. and Israel's war against Iran.

"War first shows up in prices," she said, noting that higher oil prices could drive inflation and curb gains in real wages.