TAIPEI (Taiwan News) — The Ministry of Labor (MOL) on Wednesday (Aug. 10) announced that the minimum wage for newly arrived foreign domestic caregivers and those renewing or changing contracts will be raised to NT$20,000 (US$666), while those in the middle of their contracts will have to negotiate with their employer for the higher rate.

Although Taiwan's monthly minimum wage has increased on an annual basis to its current level of NT$25,250, the monthly wage for home-based migrant workers has not been adjusted from the NT$17,000, which was set in 2015, leaving a NT$8,250 gap. 

On July 7, MOL's Employment Security Fund Management Committee concluded that such a low wage is affecting Taiwan's international image and forces caregivers to consider changing employers or fleeing their bosses and becoming undocumented workers. The committee agreed that the MOL should raise the monthly minimum wage for home-based migrant caregivers by 17% from NT$17,000 to NT$20,000 "as soon as possible," according to a MOL statement.

In a Wednesday press release, the MOL stated that while taking into account the economic burden on employers, it believes that improving the salary structure for foreign domestic caregivers can contribute to "harmonious labor-employer relations," overall management of migrant workers, and ensure a stable source of foreign workers. Therefore, it decided to implement the recommended wage hike.

(WDA image)

The Workforce Development Agency (WDA) posted a notice on its 1955PH LINE account announcing the pay raise and the groups eligible to receive it. First, newly recruited domestic caregivers from abroad who have been hired on or after Aug. 10 will immediately be eligible for the wage increase.

Second, domestic caregivers whose contract is ending and are either planning to renew or sign with a new employer are also eligible for the new wage rate, effective immediately.

However, domestic caregivers who were hired before Aug. 10 and whose contracts have not yet ended are not eligible for the mandatory pay raise until the date when their contract is renewed or transferred to a new employer. In its LINE announcement, the WDA pointed out that until the contract ends, "wages will continue to be paid in accordance with the original contract."

The WDA noted that workers in this category can attempt to negotiate an increase in wages with their employer, but the employer is not obligated by law to raise their pay until a new contract commences.