Taiwan records highest January wage growth in 16 years

台灣1月薪資漲幅創16年來新高

TAIPEI (Taiwan News) — Average monthly regular wages posted their largest increase for January in 16 years, but an official warned that rising oil prices linked to the Iran war could fuel inflation and limit further gains.

The Directorate General of Budget, Accounting and Statistics reported Monday that the average monthly regular wage for workers in industrial and service sectors rose 2.9% year-on-year to NT$48,819, the largest increase for the same month in 16 years, per Liberty Times. After adjusting for inflation, real regular wages rose 2.18% to NT$44,300 in January, the biggest January gain since 2016.

DGBAS Census Department Deputy Director Tan Wen-ling (譚文玲) attributed the rise to the government’s minimum wage increase and company pay raises. She added that the lower comparison base from fewer working days during last year’s Lunar New Year also contributed.

The median regular wage was NT$39,136, an increase of 2.61% year-on-year. Including non-regular wages such as bonuses and overtime pay, the average total wage reached NT$76,495, down 30.91% from a year earlier, mainly because Lunar New Year bonuses were issued in January last year.

Tan said that after fighting broke out between the US and Iran at the end of February, the war in the Middle East intensified, and international oil prices rose. “The first impact of war is on prices,” she said, adding that if oil prices continue to rise, inflation could follow, potentially restraining growth in real wages, per CNA.