Taiwan to Raise Minimum Monthly Wage to NT$29,500 in 2026

The decision came after nearly five hours of discussion between labor and employer representatives, marking the 10th consecutive year that minimum wages have been raised. The committee also advised businesses to adopt supportive measures to mitigate challenges from international economic conditions, including tariffs imposed by the United States.

Taiwan has steadily adjusted its minimum wage since 2016, when the monthly salary was NT$20,008 and the hourly wage NT$120. Under the leadership of former President Tsai Ing-wen and current President Lai Ching-te, the monthly base pay has climbed by nearly 43%, while the hourly rate has risen by over 58%.

Traditionally, wage adjustments take into account consumer price index (CPI) growth and part of the GDP growth rate. Analysts had expected an increase in the range of 3% to 5% for the coming year.

The Minimum Wage Act, implemented in 2024, now provides the framework for these annual reviews. The law requires consideration of CPI changes to ensure that workers’ purchasing power is maintained, along with 10 other economic indicators as references.