The Ministry of Labor announced the minimum wage will rise for a 10th straight year in 2026, though by less than labor groups demanded.
Starting January 1st, the monthly minimum wage will increase 3.2 percent to $29 thousand 500 NT, while the hourly rate will rise from $190 NT to $196 NT.
The changes still require Cabinet approval.
Officials said the decision was based on inflation and economic growth forecasts, with GDP projected to grow 4.45 percent next year and consumer prices rising 1.76 percent.
Labor groups argued for a nearly 4 percent increase, saying the smaller adjustment won't fully offset living costs or reflect Taiwan's strong export-driven growth.
This marks the second wage hike under President Lai Ching-te, following eight consecutive increases under his predecessor Tsai Ing-wen.
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