Taiwan’s Real Wages Finally Rise: What It Means for Workers

Intermediate Level | May 14, 2025

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A Positive Shift in Pay

After four years of stagnant income, Taiwan’s workers are finally seeing a real increase in their wages. In Q1 2025, the average real regular wage in the industrial and service sectors rose by 0.81% year-over-year, reaching NT\$43,450 (US\$1,428) per month. This is the first inflation-adjusted growth in four years and signals a potential rebound in purchasing power for Taiwanese workers.

Nominal wages also increased: regular wages rose by 3.03% to NT\$47,426, and total average wages (including bonuses and overtime) reached NT\$55,123, up 3.09% from a year earlier. According to the latest government data, average real wages in Taiwan rose in March 2025, marking the first inflation-adjusted growth in four years.

What Caused the Change?

The change is partly due to lower inflation, which has slowed to more manageable levels. While prices had been rising quickly over the past few years, recent economic trends have stabilized. This has allowed workers’ earnings to stretch further and actually increase in real value.

Impact on Everyday Life

For many workers, this means they can afford a little more each month—whether it’s saving for the future or spending on essentials like groceries, rent, or transportation. It’s a hopeful sign, especially for young professionals and middle-income earners who have been struggling with high living costs.

A Cautious Optimism

Experts say it’s too early to celebrate fully. While this is a step in the right direction, one quarter of growth does not guarantee a long-term trend. Another concern is the uneven distribution of wage increases—69.77% of employees earned less than the average regular wage, the highest share ever recorded. The median wage, often considered a more accurate reflection of typical income, rose by 3.03% to NT\$38,111, showing that most workers are experiencing modest improvements. Still, this change could help boost consumer confidence in the coming months.. While this is a step in the right direction, one month of growth does not mean a long-term trend. Still, it’s a welcome change for employees across the country and could help boost consumer confidence in the coming months.

Why It Matters

Real wage growth is an important signal of economic health. When workers earn more money that keeps up with inflation, they are more likely to spend, invest, and plan for the future. That kind of activity helps the entire economy.

Vocabulary

Real wages (noun): Income adjusted for inflation.
- Example: Real wages are finally rising in Taiwan.
Stagnant (adjective): Not growing or changing.
- Example: Wages have been stagnant for several years.
Inflation (noun): The rise in prices over time.
- Example: High inflation made it hard to afford basic goods.
Manageable (adjective): Easy to deal with.
- Example: Inflation is now at a more manageable level.
Stabilize (verb): To become steady or consistent.
- Example: Prices have started to stabilize.
Stretch (verb): To make something go further.
- Example: Higher wages help families stretch their income.
Essential (noun): Something necessary or basic.
- Example: Rent and food are monthly essentials.
Cautious (adjective): Careful and not too quick to act.
- Example: Economists are cautiously optimistic.
Trend (noun): A general direction of change.
- Example: This might be the start of a positive trend.
Consumer confidence (noun): Belief that the economy is doing well.
- Example: Rising wages may increase consumer confidence.

Discussion Questions (About the Article)

What are real wages, and why are they important?
How has inflation affected workers in Taiwan?
What does this wage increase mean for everyday life?
Why are experts still cautious about this news?
How can wage growth impact the overall economy?

Discussion Questions (About the Topic)

Have wages been rising or falling in your country recently?
What would you do if your income increased this year?
Do you think inflation will stay low?
What are some challenges workers face today?
How can governments support fair wages?

Related Idiom

“Make ends meet”

Meaning: To have just enough money to cover basic living costs.
Example: With wages rising, more families can finally make ends meet.

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📰 This article was inspired by Taiwan News – https://www.taiwannews.com.tw/news/6108409, and Focus Taiwan – https://focustaiwan.tw/business/202505120022