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10.2019 Life Guide

Happiness and Satisfaction of the Employees: increase in basic wage again

Far eastern New Century Corporation / Chen Siyu

          Basic wage is to protect the basic life of vulnerable workers and maintain their purchasing power. With the inflation of Taiwan's price index and economic growth and other factors, the Ministry of labor in August finalized the latest basic wage, which is expected to be implemented next year. In this issue, "legal column" takes the lead in reorganizing the relevant changes of basic wage, providing reference for labor friends and human resource units.


        The Ministry of Labor issued the Announcement No. 1080130910 of labor regulation No. 2 on August 19 this year. Since January 1 next year, the monthly basic wage has been adjusted from 23100 yuan to 23800 yuan, increased by 700 yuan, increased by 3.03%; the hourly basic wage has been adjusted from 150 yuan to 158 yuan, increased by 8 yuan, increased by 5.33%.

        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 national health insurance was also adjusted to 23800 yuan. According to the estimation of the Ministry of labor, the burden of the two parties and the government in the future is as follows:
        

        According to the Ministry of labor, the adjustment of the basic wage involves a wide range of aspects. It is agreed through discussion and full exchange of views in multiple stages, combined with comprehensive social and economic data, and carefully considering the bearing capacity of small and medium-sized enterprises and micro enterprises, as well as taking care of most young workers with hourly wage system, women in secondary employment and those with part of working hours in the middle and old age. To this end, the Ministry of labor specially collected "basic wage FAQ" for public reference:

        Q1: what is the basis for basic wage increase?
         A: the basic wage Review Committee, which is composed of representatives from labor, resources, government and education, is based on the "change rate of consumer price index" and "economic growth rate". And other economic data indicators to discuss whether to raise the resolution and the extent of the increase.

        Q2: will the rise of basic wage cause the rise of price?
         A: there are many factors that affect the price fluctuation. The government will continue to pay attention to them. In recent years, the basic wage has been gradually adjusted in a moderate and steady way. From the statistical data, the annual growth rate of CPI is 1.39%, 0.62% and 1.35% respectively since the year of 105, which is still in a relatively moderate state.

        Q3: does the basic wage increase benefit only foreign migrant workers?
         A: for the basic wage increase this time, it is estimated that about 1832600 people will benefit from the monthly salary (including 1.3671 million local workers and 465500 foreign migrant workers), while about 483300 domestic workers will benefit from the hourly salary, and the main beneficiary groups are still domestic workers. The basic wage workers are mainly concentrated in the service industry (such as catering, security, wholesale and retail), and most of the other employees in these industries are domestic workers.

        Q4: why is the basic wage of domestic and foreign migrant workers not "decoupled"?
         A: foreign migrant workers work and live in Taiwan. Their wages should also be guaranteed by basic wages. Looking around the world, countries with a minimum wage system are not "decoupled". It is often said that Singapore's domestic and foreign workers' wages are "decoupled". In fact, there is no legal minimum wage in Singapore, so there is no problem of "decoupled". Moreover, in addition to providing foreign workers' wages, Singaporean employers have to pay the government's fixed labor tax. On the whole, they have to pay higher wage costs.(source: Ministry of labor, economic daily)
        
        

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