New wage, labor insurance measures come into effect
CNATAIPEI--New measures relating to labor rights became effective Tuesday, including higher minimum wage and an increase in Labor Insurance rates.
January 2, 2013, 12:02 am TWN
The minimum hourly wage was set to increase from the existing NT$103 (US$3.55) to NT$109 from Jan. 1, 2013, which is expected to benefit about 300,000 workers, the Council of Labor Affairs (CLA) statistics showed.
Employers who fail to raise their workers' wages could be fined up to NT$300,000.
However, the Cabinet had disapproved a deliberation by the CLA in August 2012 seeking that the monthly minimum wage be raised to NT$19,047 from NT$18,780.
The Cabinet said that monthly wage adjustments had to wait until the domestic GDP grew to at least 3 percent during two consecutive quarters as well as the unemployment rate dropped to below 4 percent for two straight months.
In addition, the premium rates for Labor Insurance rose from the original 8.5 percent to 9 percent from Tuesday, indicating that 9.84 million employees would be affected. Employers, their workers and the government will cover 70 percent, 20 percent and 10 percent of the rates, respectively.