Overseas Filipino workers in Taiwan, particularly those who work in the industrial sector, are also entitled to the 4.5 percent increase in the monthly minimum wage, the Manila Economic and Cultural Office said Thursday.

According to MECO chairman Silvestro Bello III, the wage adjustment, which takes effect on 1 January 2024, will cover a total of 124,265 Filipino factory workers on the self-ruled island.

"On September 13, 2023, the Taiwan Ministry of Labor announced that the Cabinet has approved its proposed increase in the monthly minimum wage effective next year," Bello said in a statement.

Bello, however, clarified that the wage adjustment is only applicable to live-in migrant caregivers and household service workers, who are not covered by the Taiwan Labor Standards Act.

From NT$26,400 or US$838, the monthly minimum pay will be increased to NT$27,470 or US$872 starting next year, while the basic hourly rate will be raised from NT$176 to NT$183.

Bello said the labor ministry's wage increase proposal came in response to help workers in the industrial sector cope with the surging inflation and higher costs of basic necessities.

"The Ministry hopes that increasing working-class income will boost productivity and that the increased minimum wages will provide for the basic living necessities of marginal workers as well as spur domestic consumption and economic growth, thereby creating a win-win situation for both labor and management," he said quoting the labor ministry announcement.

There are about 1.79 million salaried employees and 600,000 hourly workers in Taiwan, including migrants.

Bello added that those Filipinos who will be hired in Taiwan until December 31 this year will also be entitled to the new wage rates.

There are about 154,000 Filipinos staying in Taiwan.

The wage hike marks the eighth consecutive year that the minimum wage has been raised since 2016.