Taiwan's Cabinet has officially approved a plan to raise the monthly minimum wage to NT$26,400 (US$865) and the basic hourly rate to NT$176, effective 1 January 2023.

The Ministry of Labor's Minimum Wage Review Committee on Sept. 1 decided that starting Jan. 1, the minimum monthly wage would be raised from NT$25,250 to NT$26,400, while the minimum hourly rate would be increased from NT$168 to NT$176. The plan was submitted to the Cabinet for approval.

After hearing the report on the "Minimum Wage Adjustment" on Thursday, 8 September, Premier Su Tseng-chang pointed out that he had approved the salary adjustment plan on Wednesday. This marks the seventh consecutive time that President Tsai Ing-wen has raised the minimum wage since taking office.

Su said that there is a symbiotic relationship between labor and management and there are conflicts. Su acknowledged that it was not easy to reach a consensus on a salary increase.

The premier said that thanks to the integration of labor and management, and the government's ability to consider input when making decisions, he was grateful and pleased with this "satisfactory and acceptable result." Su stated that the increase in the minimum wage will greatly benefit young people who have just entered the workforce as well as disadvantaged workers.

An estimated 2.32 million workers are expected to benefit from this wage increase, according to the Cabinet.