TAIPEI (TVBS News) — Nearly 4.08 million people in Taiwan are earning a monthly salary of less than NT$43,000, marking a five-year high in the income gap between the top 10% and bottom 10%, now at 4.12 times, the Directorate-General of Budget, Accounting, and Statistics (DGBAS) reported in late November.
A recent job bank survey also indicates that only 47.5% of Taiwanese companies expect a salary increase of 3.2% in 2024, a figure that is among the lowest in the last decade. Also, 24.5% of companies have no plans for salary adjustments next year.
Hua Tzu-hsin, general manager of a human resource institute, noted, "Rising prices impact domestic markets the most, particularly in the hospitality and food service sector. With various changing factors, companies heavily reliant on export sales tend to be conservative about pay increases, as these become fixed costs."
The survey also shows that pay raise percentages vary significantly across industries. Software and internet businesses lead with an expected 4.5% adjustment rate, followed by the optoelectronics industry at 3.9%. Consulting services are projected at 3.5%, with the electronic components and retail sectors close behind at 3.4%.
Chou Yu-hsuan, deputy director of the Youth Labor Union 95, stated, "Despite annual increases in minimum wages over the past seven to eight years, their impact on overall income remains limited, particularly for entry-level employees earning basic wages.”
Chou further added, "The wage increase simply cannot keep up with the rising living costs and expenses, affecting both the youth and labor workers."
Moreover, the survey highlights that 41% of enterprises adjusting salaries still face challenges with unmotivated employees, and 38% struggle to attract and retain talent despite wage increases.
As 2023 ends with slowing inflation, the anticipated pay increase for the next year is unlikely to surpass the escalating living costs, posing ongoing challenges in salary management for businesses.