Taipei, Aug. 21 (CNA) The planned minimum wage hike will increase the financial burden on employers by NT$16.29 billion (US$53.73 million) per year, including the increases in insurance premiums companies have to pay because of the higher wage, the Ministry of Labor (MOL) said Monday.
The burden on employees and the government, meanwhile, will rise by NT$982 million and NT$757 million per year, respectively, according to the ministry.
Last Friday, the Basic Wage Deliberation Committee under the MOL proposed to raise the minimum monthly wage to NT$22,000 from the current NT$21,009, and the minimum hourly wage to NT$140 from the current NT$133.
The proposed hike will take effect on Jan. 1, 2018 after it is approved by the Cabinet and will benefit 1.67 million monthly-paid employees and 390,300 hourly-paid employees, according to the ministry.
The rise, however, will also increase the contributions of employers, employees and the government to labor insurance, employment insurance and national health insurance premiums, which which are calculated based on employees' pay levels.
Employees who will receive higher minimum monthly wages and their employers will see their burdens increase by NT$774 million and NT$10.86 billion, respectively, with the burden on the government increasing by NT$574 million, the MOL said.
Meanwhile, hourly-paid employees and their employers will see increases of NT$208 million and NT$5.43 billion, respectively, with the burden on the government increasing by NT$183 million, it added.
