Taipei: Taiwan's real regular wages marked their quickest growth for the month of January in over a decade, as steady pay raises outstripped inflation, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported on Monday. The average monthly regular wage in the industrial and service sectors was NT$48,819 (US$1,523) for January, representing a 2.9 percent increase from the previous year, as highlighted by data from the DGBAS.
According to Focus Taiwan, this rise was the largest for the month in 16 years. When adjusted for inflation, the average real regular wages increased 2.18 percent year-over-year in January, marking the fastest growth since 2016. The median regular wage stood at NT$39,136.
Real average monthly earnings, however, experienced a significant decline of 31.38 percent compared to the previous year, attributed to the timing of the Lunar New Year holiday. Average monthly earnings, which encompass both regular wages and non-regular income like overtime pay and bonuses, amounted to NT$76,495 in January, representing a drop of more than 30 percent from a year earlier.
DGBAS Census Department Deputy Director Tan Wen-ling, in discussions with reporters, credited the growth in regular wages to a government-mandated minimum wage hike alongside proactive pay raises by private employers. The notable fluctuation in total earnings was primarily due to the calendar. The Lunar New Year, which occurred in late January and early February in 2025, as opposed to mid-February this year, resulted in fewer working days in January 2025, leading to a lower base for comparing regular wages.
The earlier holiday in 2025 also led to more year-end bonuses being paid in January 2025 than in January 2026, creating a higher comparison base for real average monthly earnings. Despite the positive developments, Tan warned that increasing geopolitical tensions could impact future wage growth. She cited the rise in international oil prices, a consequence of the U.S. and Israel's conflict with Iran, as a potential threat.
"War first shows up in prices," Tan remarked, pointing out that higher oil prices could escalate inflation and potentially hinder gains in real wages.