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Manila Bulletin devider Philippines devider National devider MECO: Taiwan's new wage law to benefit 124,000 Filipino workers

MECO: Taiwan's new wage law to benefit 124,000 Filipino workers

Published Dec 24, 2023 07:21 am

Taiwan has passed a minimum wage law that is set to benefit close to 124,000 Filipino factory workers, the Manila Economic and Cultural Office (MECO) said on Sunday, Dec. 24.

MECO chairman and resident representative Silvestre H. Bello III said the new Minimum Wage Act affirmed the wage increase approved by the labor ministry in October which raised the monthly minimum wage by 3.89 percent or NT$1,070 effective Jan. 1 next year.

The new minimum wage will be NT$27, 470 (P46,699) from NT$26,400 (P44,800), while the basic hourly rate will be NT$ 183 from from NT$176.

“This is a landmark minimum wage law which provides mechanisms for the annual review of wages. This measure also imposes huge penalties on employers for non-compliance with employment contracts,” said Bello.

The penalty, he said, is NT$1.5 million (P2.9 million) on employers for non-payment of the minimum monthly wage prescribed by the government.

“Our OFWs in Taiwan will enjoy a good start of the new year with their wages being increased. We laud the initiative and good gesture of the Taiwanese government that benefit all workers, including our OFWs in Taiwan,” he added.

Of the 151,562 OFWs, Bello said the new wage law is expected to benefit 123,768 Filipino factory workers, and those who will be hired until Dec. 31 this year.

Bello explained that the Minimum Wage Act, passed by Taiwan’s Legislative Yuan last week, intends to improve and expedite Taiwan's minimum wage adjustment procedure by raising the minimum wage based on the annual rise in the consumer price index (CPI). 

“The CPI serves as an important standard, but the committee also takes into account other metrics, such as GDP growth, per capita income, and the minimal amount needed to live comfortably,” said Bello. 

He said It is intended to guarantee that worker’s pay remains up to date with changes in the cost of living and likewise outlines a framework for the adjustment process. 

The Labor Minister chairs the review committee team composed of representatives from different sectors such as labor and industry, scholars or experts, Ministry of Economic Affairs (MOEA) and the National Development Council (NDC).

The committee is required to meet in the third quarter of every year to examine the minimum wage. The proposed adjustments shall only be approved provided that the committee has reached either a consensus or a majority vote.

 

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