Council of Labor Affairs Chairman Lee Ying-yuan, who is visiting Washington, D.C. to lobby for support for Taiwan's drive to sign a free trade agreement with the United States, made the remarks while meeting with Taiwanese journalists stationed in the U.S. capital over a cup of tea.

After extensive consultations with major industrial and commercial associations, labor unions, and academic groups, Lee said a consensus has been forged for a measured adjustment of the country's minimum wage, which has been frozen at NT$15,840 per month, or NT$66 per hour, for a decade.

In view of the more than 50 percent growth in Taiwan's gross domestic product (GDP) for the past 10 years, Lee said, the minimum wage should be raised appropriately to let all wage earners enjoy the fruits of economic growth.

The planned adjustment is tentatively set for implementation in the second half of this year, Lee said, adding that July 1 is the most favored starting day. But he added that the exact timing for the implementation can be readily changed based on practical considerations.

As to the adjustment range, Lee said, a combination of factors, including the increase in the average consumer price index over the past decade, Taiwan's general economic growth as well as the possible adverse impact on local industries' competitiveness, should be taken into consideration when deciding on the level of the minimum wage increase.

While the business community has declared that 5 percent is the maximum level they are willing to accept for an upward adjustment, labor groups want a far larger hike, Lee said, adding that he once proposed at a Legislative Yuan session that the minimum wage be raised to 40 percent of the average salary of all workers in the country. If adopted, the minimum wage would be increased to NT$17,600 per month, representing a hike of 11 percent over the current level.

"Anyway, many elements should be taken into account, and the final adjustment figure should be announced by the premier himself," Lee said.

Noting that under Taiwan's new portable pension system adopted some two years ago, employers are required to deposit a monthly pension reserve fund equivalent to 6 percent of an employee's salary, which Lee said is to some extent tantamount to offering a pay raise. "This element should also be taken into consideration when deciding the minimum wage adjustment range," he added.

Meanwhile, Lee said Taiwan could refer to the past U.S. practice in basic wage adjustment in which its minimum wage was raised by 7.25 percent in three stages during a 26-month interval. Lee arrived in the U.S. capital Sunday for an FTA-lobbying visit, during which he has met with Bush administration officials, congressional leaders and think tank scholars to brief them on Taiwan's labor policies and welfare services as part of his efforts to clear the way for signing a bilateral free trade pact.