Advocacy for an Increase in Minimum Work Remuneration
In Taiwan, the Minimum Wage Deliberation Committee is set to meet next week, as the government grapples with the issue of wage reform. The committee, under the purview of the Ministry of Labor, is tasked with deciding on proposed wage increases for the following year.
Currently, nearly 20 percent of the workforce in Taiwan earns less than NT$30,000 a month. This figure underscores the urgency for action, as many people struggle to make ends meet. The most recent wage increase benefited 2.57 million workers, including a significant number of migrant workers. However, it did not guarantee financial security, especially considering the rising costs of living.
GDP growth in Taiwan has exceeded expectations this year, with a forecast of 4.5 percent. This growth is a positive sign for the economy, but it does not necessarily translate into improved living conditions for everyone. The government must ask harder questions about what meaningful wage reform looks like and how to close the gap between economic indicators and the real, everyday struggles of working people.
Rising prices place the greatest strain on low-income people in Taiwan. Although the Consumer Price Index (CPI) has remained relatively stable at between 1.5 and 2 percent, food prices rose sharply during several months this year. This volatility, often caused by typhoons and supply disruptions, further exacerbates the financial pressure on low-income households.
The widening gap between earnings and the cost of living in Taiwan is already taking a demographic toll. A recent Ministry of Health and Welfare survey found that nearly 46 percent of women aged between 15 and 24 in Taiwan do not want children, with more than 60 percent citing financial pressure as the main reason.
In addition to food costs, other expenses also strain low-income households. Rising utility costs in Taiwan add to the strain, and the rental market remains largely unregulated, leaving tenants vulnerable to sudden price hikes. Restaurants and retailers in Taiwan pass increased food costs onto consumers, furthering the financial pressure.
If the government is serious about building an economy that works for everyone, it must consider bolder actions for meaningful wage reform. Raising the minimum wage by a small margin each year might appear responsible and measured, but it is deeply conservative at a time that calls for bolder action. The Minimum Wage Act was designed to ensure that vulnerable groups are not excluded from the benefits of economic growth, and it is crucial that this intent is upheld.
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