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New basic wage brings added insurance costs for workers

Reporter TVBS News Staff
Release time:2024/09/05 10:47
Last update time:2024/09/05 11:15
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New wage leads to added insurance costs (TVBS News) New basic wage brings added insurance costs for workers
New wage leads to added insurance costs (TVBS News)

TAIPEI (TVBS News) — The Ministry of Labor (MOL, 勞動部) estimated the Wednesday (Sept. 4) announcement to raise the monthly salary to NT$28,590 and the hourly wage to NT$190 could lead to employers paying an additional NT$195 per worker monthly, employees NT$56, and the government NT$28.

The MOL announced on Wednesday a minimum wage increase for 2025, an adjustment that will benefit an estimated 2.5718 million workers, although both employees and employers will face higher labor insurance contributions.

 

The ministry estimates that 1.895 million salaried workers, including 368,000 migrant workers, will benefit from the increase. This adjustment will add a combined annual cost of NT$22.335 billion to labor, capital, and government expenses. Additionally, the hourly wage increase will benefit approximately 676,800 workers, with a combined annual cost increase of NT$5.937 billion.

The insured salary range will rise from NT$27,470 to NT$28,590. Based on next year's labor insurance accident rate of 12.5% (including 1% for employment insurance), employers will pay NT$2,502 per worker, employees NT$715, and the government NT$358.

Labor Minister Ho Pei-shan (何佩珊) explained that the wage review committee discussed Taiwan's current economic situation, particularly focusing on the consumer price index (CPI) and its impact on workers.
 

However, industry groups expressed concerns that the government's decision might lead to higher end-product prices and inevitable inflation, urging the public to prepare for potential cost increases.

Taiwan Affairs

#minimum wage increase# Taiwan labor market# hourly wage# monthly salary# labor insurance# migrant workers# economic situation# Taiwan minimum wage 2025# labor insurance contributions increase# impact of wage increase on inflation

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