TAIPEI (Taiwan News) – A fast rise in the minimum hourly wage over the past six years could be partly responsible for labor shortages, a labor leader said Wednesday (Aug. 21).
With a committee meeting on Sept. 4 to discuss changes to the minimum wage, one line of thinking has emerged that the hourly wage should no longer rise more than the minimum monthly wage, Radio Taiwan International reported.
Since 2016, the basic monthly wage has risen 37% to NT$27,470 (US$859.64) from NT$20,008, while the minimum hourly wage has gone up 52% to NT$183 from NT$120. The difference is encouraging people to turn to less conventional jobs while creating labor shortages in traditional sectors, according to Tai Kuo-jung (戴國榮), the general secretary of the Taiwan Confederation of Trade Unions.
If one counted 22 working days per month of eight hours each, a worker drawing hourly pay would earn NT$32,208 per month, or NT$4,738 more than the minimum wage.
Younger job seekers are often looking for flexibility, preferring part-time jobs to work which tie them down from nine to five each day, Tai said. Yet, the part-time work will not give them a guarantee in developing a career, he added.
The union leader said the monthly minimum wage should rise by the same percentage or even slightly more than the hourly wage. However, employers said the hourly wage was only a short-term measure designed to attract temporary workers during periods of high demand.