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03.2019 Life Guide

Lucky New Year's Day: A Brief Talk on the New Policy of Basic Wage Promotion

Far Eastern New Century Corporation / Cai Jialing

        In order to effectively raise Taiwan's salary level, the government not only promotes salary increases for military, public and educational personnel and encourages enterprises to increase salaries, but also considers basic salaries through the meeting of the Basic Wage Review Committee to ensure the basic livelihood of grass-roots workers. Since January 1 this year, the basic wage has been raised again. Legal Column has collected relevant policies and questions to help both employers and employees quickly grasp the latest wage increase.


        The purpose of basic wage formulation is to avoid unequal labor relations and socio-economic situation, resulting in unfair low wages, affecting the right of workers and their families to work and subsistence; therefore, although labor contract is a private law contract, wages should be negotiated by the parties themselves in principle, but the state intervenes in the wage decision of both employers and workers, and sets the minimum benchmark to maintain the minimum income. The minimum living standard of vulnerable workers and their purchasing power are particularly important for vulnerable workers whose wages are on the edge of basic wages.
        
         The Basic Wage Review Committee of the Ministry of Labor has comprehensively considered 17 resolutions for calculating the annual growth rate of important livelihood goods, economic growth rate and labor productivity index, and approved by the Executive Yuan since January 1, 2019, the monthly basic wage has been adjusted from 22,000 yuan to 23,100 yuan, up by 1,100 yuan, up by 5%; the hourly basic wage has been adjusted from 140 yuan to 150 yuan, up by 10 yuan, up by 7.14%. 。
        

        In addition, in line with the increase of basic wages, the first level of the classification table of the insured amount of labor insurance, employment insurance and universal health insurance has also been adjusted to 23,100 yuan. According to the estimate of the Ministry of Labor, after the increase of the basic monthly salary, the employer will pay every worker every month for labor insurance, insurance, health insurance and retirement. The equal non-salary remuneration is about 1,301 yuan, while the hourly wage employer increases by 11.82 yuan per hour. It is estimated that employers will increase the cost by 20.683 billion yuan annually, the government will increase by 1.098 billion yuan annually, and the labor side will increase the premium expenditure by 1.299 billion yuan annually. ("Labor Insurance Pay Classification Table" for referencehttps://www.bli.gov.tw/0103175.html)

        [Basic wage increase QA]
         Q1: After the adjustment of basic wage on January 1, 2019, will the hourly wage of monthly wage workers be changed to 150 yuan?
         A:The total amount of monthly salary paid by a monthly remunerator shall be deemed to have been paid equivalent to 240 hours of salary, unless otherwise agreed by the employer and employer. On the basis of this, the average hourly wage for the deferred wage shall be calculated, and the rights and interests of the employer and employer shall not be changed.

        Q2: If monthly payers need to extend their working hours, how do they calculate their deferred wages?
         A:If the monthly wage is 23,100 yuan, the daily hourly wage can be divided by 23,100 yuan by 30 days, then divided by 8 hours, and the deferred wage can be calculated according to Article 24 of the Labor Standard Law.

        Q3: The monthly wage of the worker is 23,100 yuan (including full-time bonus). Can you deduct the salary if you need leave?
         A:If a worker takes leave of absence from work and pays wages according to his "actual working hours", it will not violate the Labor Standard Law. According to Article 21 of the Labor Standard Law, wages shall be agreed upon by both the employer and the employer, but not less than the basic wage. Therefore, the monthly wage earned by workers during their normal working hours shall not be less than the balance of the monthly basic wage after deducting the daily basic wage which has not been paid due to leave. For example, if a worker is on leave for two days, his monthly salary shall not be less than 21,560 yuan (i.e. 23,100 yuan-770*2 yuan = 21,560 yuan).) (Source: Executive Yuan, Ministry of Labor)
        
        

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