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Taiwan’s wage disparity grows with M-shaped distribution

Reporter Isabel Wang
Release time:2025/01/24 15:14
Last update time:2025/01/24 15:14
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TAIPEI (TVBS News)— The median annual earnings for employees in the industrial and service sectors reached NT$525,000 (U$16,000) in 2023, while half of the workforce earned a monthly salary of about NT$44,000 (US$1,342), according to the Directorate-General of Budget, Accounting and Statistics (DGBAS, 主計總處) data from late last year.  

The numbers highlighted a trend toward an M-shaped wage distribution. As Taiwan's wage disparity has grown more pronounced, industry type significantly influences wage levels. In the electronics sector, an annual salary of nearly NT$600,000 (US$18,307) surpasses only 20% of workers, while in hospitality and food services, it exceeds 80%. 

 

Over the past decade, wage gaps among industries have widened, especially in recent years. As Taiwan faces a declining birthrate, industries compete for talent, prompting the hospitality sector to raise wages and benefits to address labor shortages.

Bingo Yang (楊宗斌), a spokesperson for a job bank, noted, "Although Taiwan's industrial sector seems to have raised salaries from last year to this year, high-salary earners are still earning higher amounts, while low-salary workers are earning relatively low salaries."

Meanwhile, Hsin Ping-lung(辛炳隆), an associate professor at National Taiwan University's Graduate Institute of National Development (台大國發所), observed rapid wage growth in tech-related industries, contrasting with stagnation in lower-paying sectors like publishing.
 

Taiwan's wage structure has long been plagued by an expanding M-shaped wage distribution, with high salaries concentrated in specific sectors. Experts cautioned against exacerbating social inequality, which adversely affects labor market structure and industrial development.