Employers in Taiwan voiced opposition to the proposal, saying that it would be too great a burden for small and medium-sized businesses amidst the COVID-19 pandemic.
The pandemic, coupled with the trade war between the United States and China, have forced many industries into difficult situations and a minimum wage hike would make these situations worse, said Tsai Lien-shen, secretary-general of the Chinese National Federation of Industries.
The increased costs faced by businesses are not as small as they appear, Tsai said, as a rise in the minimum wage will also lead to an increase in health insurance and labor insurance costs.
Tsai said that although he will respect the government's decision, he cautioned that a rise could lead to an increase in unemployment.
According to Darson Chiu, a scholar at the Taiwan Institute of Economic Research, adjustments to the basic wage reflect the rate of economic growth and uncertainty over the pandemic. (In a report by CNA)
A Ministry of Labor committee on Tuesday proposed to raise the minimum monthly wage in Taiwan to NT$24,000 (US$807) and the minimum hourly wage to NT$160, although it must still be approved by the Cabinet.
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