TAIPEI (Taiwan News) — A labor confederation has called on the Taiwanese government to raise the country’s minimum monthly wage to NT$28,000 (US$924) for next year ahead of Sept. 1, when a committee will decide on whether the minimum wage should be raised and, if so, the degree of the increase.

The Ministry of Labor will hold a meeting of the Minimum Wage Review Committee on Sept. 1 to discuss whether the minimum wage for next year should be adjusted, CNA reported. The committee consists of representatives from labor, capital, government, and academia.

Taiwan Confederation of Trade Unions (TCTU) Secretary-General Tai Kuo-jung (戴國榮) said that labor is hoping that the minimum wage can be raised to NT$28,000. Only by doing so, can the government achieve President Tsai Ing-wen’s (蔡英文) goal of reaching a NT$30,000 minimum wage before her term expires, the trade union official said.

The committee usually takes into consideration the Consumer Price Index (CPI) and Gross Domestic Product (GDP) before making decisions, Tai said. Based on the latest economic forecast, the Directorate-General of Budget, Accounting and Statistics has adjusted this year’s CPI from 2.67% to 2.92%, while adjusting GDP down from 3.91% to 3.76%, per CNA.

Tai said labor is hoping the upcoming minimum wage adjustment can sufficiently reflect the CPI, adding that if the wage increase cannot keep up with inflation, it’s like a wage cut. Noting that Taiwan has long been a low-wage country, he predicted that the minimum wage for next year will be increased by at least 4.8%.

TCTU President Chiang Chien-hsing (江健興) said that the minimum wage should be adjusted up to stimulate consumption and prevent a negative economic cycle.

Even though the minimum wage for this year increased by 5.21%, inflation has more than offset the wage hike, Chiang said, adding that Taiwan has seen economic growth in recent years, making it more compelling to raise the minimum wage, per CNA.

Taiwan's minimum monthly wage for 2022 is NT$25,250.