Taiwan Announces Minimum Wage Increase Effective January 1, 2026

Taiwan’s Ministry of Labor has announced an adjustment to the minimum wage, effective January 1, 2026. Both the monthly and hourly minimum wages will see increases, reflecting ongoing efforts to balance workers’ purchasing power with economic realities.

For foreign employers hiring local or remote talent in Taiwan, understanding these changes is essential to maintain compliance, manage payroll accurately, and ensure fair compensation practices.

Understanding the Wage Adjustment

The Minimum Wage Deliberation Committee, comprising labor and employer representatives, scholars, experts, and government officials, reviewed Taiwan’s socio-economic landscape, inflation trends, and sector-specific challenges before agreeing on the new rates.

The monthly minimum wage rises from NT$28,590 to NT$29,500, while the hourly minimum wage increases from NT$190 to NT$196. The committee considered the year-over-year consumer price index (CPI) increase of 1.76% to ensure the real purchasing power of workers is maintained, particularly for those on lower incomes.

During deliberations, employer representatives highlighted economic pressures from international trade policies, including currency fluctuations and reciprocal tariffs, which affect specific industries differently. Labor representatives emphasized that inflation disproportionately impacts low-income workers. After careful discussion and compromise facilitated by government officials, the final adjustment reflects both considerations.

Historical Context and Impact

This adjustment marks the 10th consecutive year of minimum wage increases in Taiwan. Since 2016:

• The monthly wage has risen from NT$20,008 to NT$29,500, a total increase of 47.4%.
• The hourly wage has grown from NT$120 to NT$196, a total increase of 63.3%.

The 2026 increase is expected to benefit approximately 2.47 million workers, including 2.08 million local employees, reinforcing Taiwan’s commitment to fair labor standards.

Practical Implications for Foreign Employers

For companies employing local or remote talent in Taiwan:

1. Payroll Adjustments: Update employee payroll systems to reflect the new monthly and hourly minimum wages.
2. Employment Contracts: Review existing contracts to ensure compliance with minimum wage requirements.
3. Budget Planning: Factor in the wage increase for future compensation planning and workforce budgeting.
4. HR Policies: Ensure policies regarding overtime, bonuses, and hourly rates align with the updated minimum wage.
5. Compliance Management: Work with local experts or an Employer of Record like Tarmack to simplify compliance, reporting, and payroll administration.

Legal and employment law experts emphasize that compliance with minimum wage laws is not optional. Violations can result in corrective actions by authorities, including mandates to adjust wages retroactively. Partnering with a knowledgeable EOR can mitigate administrative burden and reduce legal risk.

Advisory Perspective

Experts note that Taiwan’s minimum wage policy seeks to protect worker purchasing power while supporting economic stability. For foreign employers, staying informed and proactive about wage changes ensures:

• Legal compliance with the Minimum Wage Act
• Accurate payroll and reporting
• Retention of remote and local talent through fair compensation practices

An Employer of Record like Tarmack can provide guidance on local employment regulations, wage compliance, and payroll management, making it easier for companies to employ talent in Taiwan without facing legal or administrative hurdles.

This update positions Taiwan as a competitive labor market that continues to prioritize fair compensation, while offering foreign employers clear rules to operate efficiently.