TAIPEI (TVBS News) — More than 80% of Taiwanese workers carry multiple loans, with average debt reaching NT$2.41 million (US$76,500), according to a survey released Friday (April 17) by 1111 Job Bank (1111人力銀行). The findings underscore growing financial strain as wage growth lags behind living costs, forcing many to borrow for daily expenses rather than long-term investments.
Taiwan's GDP grew 12.65% in the fourth quarter of 2025, the highest in 15 years, driven by the island's role as a key global hub for advanced semiconductors. The economy has consistently outperformed regional peers, yet the gains have not translated into financial relief for most workers. The disconnect between macroeconomic strength and household finances has widened in recent years.
In 2025, Taiwan's median wage rose 3%, yet 69.77% of employees earned below that level, according to the Directorate-General of Budget, Accounting and Statistics (行政院主計總處), Taiwan's cabinet-level statistics agency. Wage growth has lagged behind living costs for years, leaving many workers unable to keep pace with rising expenses. The pressure is increasingly visible at the household level, where borrowing has become a necessity rather than a choice.
Data from the Joint Credit Information Center (聯徵中心), Taiwan's national credit bureau, shows that 5.179 million people held personal loans as of January, with total outstanding balances reaching NT$24.2 trillion (US$768 billion). The average worker now carries a mix of debt, from mortgages to high-interest credit card installments. The most common reason for borrowing is not luxury spending but maintaining daily expenses, the survey found.
Monthly loan repayments now consume an average of 41% of a worker's salary, severely limiting financial flexibility, the survey found. Interest rates on new mortgages hit 2.67% last year, a 17-year high that added further pressure on borrowers. The combination of high debt servicing costs and rising interest rates has left many workers with little room to save or invest.
For the international community, Taiwan is often viewed through the lens of geopolitics and its role in global semiconductor supply chains. For millions of workers carrying personal loans, however, the more immediate concern lies closer to home. Their focus is on monthly finances and managing debt obligations that consume a significant portion of their income.
Workers are cutting daily expenses and taking on additional work to bridge the gap between income and obligations, but the long-term outlook remains uncertain. Many estimate it will take at least a decade to repay their debts, raising questions about whether current economic conditions offer a sustainable path forward. The survey findings highlight the growing disconnect between Taiwan's economic success on the global stage and the financial struggles of its workforce. ◼