TAIPEI (Taiwan News) — The Ministry of Labor (MOL) announced on Thursday (Sept. 19) that the monthly minimum wage will be raised to NT$28,590 (US$896) next year.

The MOL issued a notice announcing the move, which will take effect on Jan. 1 next year. The minimum monthly wage will be hiked from NT$27,470 to NT$28,590, an increase of over 4%, while the hourly minimum wage will rise from NT$183 to NT$190, a 3.8% hike.

The Minimum Wage Act (最低工資法) went into effect earlier this year. The ministry held its first minimum wage review by the Minimum Wage Deliberation Committee following the law's implementation on Sept. 4. 

After considering data such as the year-on-year increase in the consumer price index (CPI) and the economic growth rate, Labor Minister Ho Pei-shan (何佩珊) decided to increase the monthly wage by 4.08%.

This is the first minimum wage review during President Lai Ching-te's (賴清德) term and the decision to hike pay marked the ninth consecutive year of increases.

According to the MOL, this adjustment will benefit approximately 2.57 million workers. It estimates this will incur additional costs of NT$1.441 billion, NT$25.352 billion, and NT$1.479 billion for labor, businesses, and the government, respectively.