Nearly 125,000 Pinoys to benefit from Taiwan wage hike

Metro Manila (CNN Philippines, December 24) — A new landmark minimum wage law is set to increase pay for almost 125,000 overseas Filipino workers (OFWs) in Taiwan, the Manila Economic and Cultural Office (MECO) said Sunday.

Of the 151,562 OFWs in Taiwan, MECO said the new measure, which provides mechanisms for the annual review of wages, is expected to benefit 123,768 Filipino factory workers and those who will be hired until Dec. 31, 2023.

«Our OFWs in Taiwan will enjoy a good start of the new year with their wages being increased,» MECO Chairman Silvestre Bello III said in a statement.

Bello also lauded the gesture of the Taiwanese government for considering the welfare of OFWs.

Taiwan’s Minimum Wage Act raised the monthly minimum pay by 3.89% (NT$1,070) effective Jan. 1, 2024.

The new minimum wage will be increased from NT$26,400 (₱44,800) to NT$27,470 (₱46,699), while the basic hourly rate will be hiked from NT$176 to NT$183.

The wage act aims to expedite Taiwan's minimum wage adjustment by raising the minimum pay based on the annual rise in the consumer price index (CPI) which is a way to guarantee that worker's pay remains up to date with changes in the cost of living.

The framework of the law is reviewed by a committee team chaired by the Labor Minister and members from different sectors such as labor and industry, scholars or experts, Ministry of Economic Affairs and the National Development Council.

The CPI serves as an important standard, but the committee also takes into account other metrics, such as GDP growth, per capita income, and the minimal amount needed to live comfortably.

Apart from the pay hike, the law passed by Taiwan's Legislative Yuan last week also imposes huge penalties on employers for non-compliance with employment contracts.

The provision has set a NT$1.5 million (₱2.9 million) penalty on employers for non-payment of the minimum monthly wage prescribed by the government.