Average Wages in Taiwan Rise Amid Minimum Wage Increases

Average wages in Taiwan saw a significant rise in August 2023, primarily driven by increases in base pay and substantial bonuses in the technology sector. According to the Directorate-General of Budget, Accounting and Statistics (DGBAS), the average regular monthly wage reached NT$48,098 (approximately US$1,564), reflecting a growth of 2.92 percent compared to the previous year. Total monthly earnings, which include bonuses and overtime pay, averaged NT$61,646, marking an increase of 4.38 percent.

The first eight months of the year have shown encouraging trends, with the average regular wage at NT$47,709, indicating the fastest growth in 25 years at 2.98 percent. DGBAS Deputy Director Tan Wen-ling attributed these steady gains to recent minimum wage hikes and corporate salary adjustments. When adjusted for inflation, real regular wages rose by 1.12 percent, while real total wages increased by 2 percent, the largest improvements seen in five and seven years, respectively, as consumer prices moderated.

Despite the overall averages, the median regular wage—considered a more reliable indicator of typical earnings—stood at NT$38,217, up 2.79 percent from the previous year. The real median regular wage also saw a modest increase of 0.94 percent, reflecting gradual improvements in worker compensation.

Sector-Specific Wage Insights

Breaking down by industry, the highest-paying sectors in the first eight months included finance and insurance, averaging NT$77,300, followed by publishing, audiovisual, and information services at NT$69,481. Professional, scientific, and technical services averaged NT$58,152. In contrast, the accommodation and food services sectors averaged NT$32,100, and other service industries averaged NT$36,620, both figures falling below the overall average. This disparity highlights the prevalence of nonstandard employment in those fields.

In manufacturing, the median regular wage was NT$36,500, with electronic components reaching NT$46,000. This data underscores the existing pay gap between the technology sector and traditional industries, as noted by Tan.

Average total working hours in August reached 172.4 hours, which included 8.8 hours of overtime. The overtime pay generated NT$2,404, a 3.75 percent increase from the same month the previous year. Notably, overtime hours in manufacturing averaged 17.3 hours, marking 15 consecutive months of growth. The electronic components sector reported an unprecedented 29.6 hours of overtime, driven by strong demand for consumer electronics, particularly in artificial intelligence applications.

Conversely, the auto parts and base metal manufacturing sectors experienced a decline in overtime by two to three hours compared to the previous year. This decrease has been attributed to ongoing trade tensions between the United States and China, alongside the impact of tariffs on traditional industries.

Labour Market Trends

From January to August 2023, the total number of employees in Taiwan reached 8.51 million, reflecting a year-on-year increase of 0.79 percent. The accommodation and food services sector recorded the largest employment gain, adding 18,000 workers, followed closely by healthcare and social work services, which added 11,000 positions.

In August, the labor market saw an entry rate of 2.41 percent and an exit rate of 2.35 percent, indicating a continued level of labor mobility. Among those departing from their jobs, retirees represented 4.8 percent, while approximately 74 percent had been employed for less than three years. This data suggests that short-term employment remains prevalent in the current labor market landscape.