TAIPEI (Taiwan News) — The Legislative Yuan on Tuesday (Dec. 12) approved the proposed "Minimum Wage Act" (最低工資法), which includes a fine of up to NT$1.5 million (US$46,700) for employers who fail to pay their workers the minimum wage.

Among the provisions of the third and final reading of the bill was a requirement that the central government set up a minimum wage review committee and hold a meeting in the third quarter of each year, reported CNA. It said that the minimum wage should be formulated based on the annual increase rate of the consumer price index (CPI).

The Minimum Wage Act covers six key points, including the minimum wage review committee, reference indicators for wage adjustment, research panel, review procedures, minimum wage approval process, and penalties.

As for penalties, the third article stipulated that if the wage agreed between the worker and the employer is lower than the minimum wage, the municipal or county (city) competent authority may impose a fine ranging between NT$20,000 and NT$1 million on the employer or business. The penalty may be increased to half of the maximum statutory fine based on the size of the public institution, the number of offenders, or the circumstances of the violation.

In addition, for those who are fined, the municipal or county (city) competent authorities are required to publicly disclose the name of the business entity or business owner, the date of the penalty, and the amount of the fine. They are also mandated to issue an improvement notice, and if the violation is not rectified within the stipulated period, further penalties may be imposed accordingly.

The third reading of the bill stipulated that the effective date of the new minimum wage would be Jan. 1 of the following year, unless the review committee deems it necessary to set another implementation date and is approved by the Cabinet.