Overseas Filipino workers in Taiwan, particularly those in the industrial sector, will be entitled to a 4.5 percent increase in their monthly minimum wages, 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 124,265 Filipino factory workers on the self-ruled island.

"On 13 September 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 would help workers in the industrial sector cope with 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.

Taiwan has about 1.79 million salaried employees and 600,000 hourly workers, including migrants.

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

About 154,000 Filipinos are staying in Taiwan. The wage hike marks the eighth consecutive year the minimum wage has been raised since 2016.