Labor Minister Hsu Ming-chun (???) told lawmakers on Wednesday that she supported an increase in the minimum wage, about one week before the Minimum Wage Review Committee convenes to decide on the matter.
Fielding questions from lawmakers of the Social Welfare and Environmental Hygiene Committee, Hsu said members of the Ministry of Labor's (MOL's) annual committee have discussed the issue and reached a level of consensus on raising the minimum wage in 2022.
While Hsu said she supported the idea, she did not explain why or how big it might be, saying only that she hoped it would be reasonable.
Hsu stressed, however, that the extent of the increase would not be determined until the committee meets on Oct. 8.
The Minimum Wage Review Committee consists of government officials responsible for labor and economic affairs, and representatives of labor, the private sector and academia.
By law, the committee holds a minimum wage review meeting in the third quarter of every year, and if it decides to make an adjustment to the minimum wage, it must submit its decision to the Cabinet for approval. The Cabinet almost invariably follows the committee's recommendation.
The current minimum monthly wage is NT$24,000 (US$857) and the minimum hourly wage is NT$160.
Due to COVID-19, the government last year raised the minimum wage by only 0.84 percent, the lowest increase in five years.
Speaking in an online interview Wednesday, National Development Council chief Kung Ming-hsin (???) said the government was looking to raise the minimum wage by a larger extent this year because Taiwan's economy could grow by 6 percent or more in 2021, based on estimates by international institutions.
Business representatives, however, have raised concerns over the government's plan to raise the minimum wage.
At a recent press event, Hsu Shu-po (???), president of the General Chamber of Commerce of the Republic of China, said his organization opposed an increase in the minimum wage.
If the government does decide to do so, it should provide subsidies for companies affected by the COVID-19 pandemic until their business resumes to normal, Hsu said.
Kung said Wednesday the government will have a plan to "cover additional costs incurred by businesses" if the committee decides to raise the minimum wage in next week's meeting.
The plan would provide subsidies to companies that hire minimum wage workers and have suffered losses due to COVID-19, Kung added.
More details of the plan will be announced by the MOL after the committee reaches a decision next week, the Ministry of Economic Affairs said Wednesday.
Source: Focus Taiwan News Channel