TAIPEI (Taiwan News) — The Chinese Federation of Labour (CFL) on Wednesday criticized Economics Minister Kung Ming-hsin (龔明鑫) for suggesting that Taiwan’s minimum wage formula should be reconsidered in light of economic pressures from US tariffs.
Kung acknowledged that Taiwan’s economic performance in the first half of 2025 has been strong, per Liberty Times. However, he said the pressure US tariffs place on small- and medium-sized enterprises may justify a review of the formula used to adjust the minimum wage.
In response, the CFL argued that Taiwan’s economic challenges are more closely tied to flawed government policy and international dynamics than to the existing wage formula, per NOWnews. The group warned that revising the system amid job insecurity would deal another blow to the working class.
The CFL pointed out the minimum wage formula was designed to provide an objective basis for wage adjustments. The group argued that weakening the formula would turn labor rights into a political bargaining chip.
The formula, introduced in 2017, takes into account economic growth and inflation, per Storm Media. It is intended to balance labor protections with the capacity of businesses to absorb wage increases.
The CFL also pointed out that small- and medium-sized enterprises in traditional industries already suffer from chronically low wages. Instead of changing the formula, the group urged the government to push for stronger wage growth.
The federation specifically called on Minister of Labor Hung Sun-han (洪申翰) to defend the current formula and uphold labor rights. It also urged the government to directly address the economic strain caused by US tariffs, rather than shifting the burden onto workers.
Meanwhile, Chinese National Association of Industry and Commerce Chair Thomas Wu (吳東亮) urged the government to freeze electricity rates and either pause or minimize any increase to the minimum wage. He noted that while large corporations may be able to absorb the impact of tariffs, smaller companies need more government support.
