Taipei, Sept. 15 (CNA) Taiwan High Speed Rail Corp. (THSRC), the sole high speed railway operator in the country, announced plans to raise employee wages by an average of 3 percent, effective from Oct. 1.

The wage hike came after an announcement by Premier Lai Ching-te on Tuesday that the government has decided to raise the wages of government officials by 3 percent, with President Tsai Ing-wen on Wednesday urging the private sector to follow suit.

However, after a meeting of the company's board of directors on Thursday approved the wage hike proposal, THSRC did not say the decision was in response to the government's move.

Although the government is the largest shareholder in THSRC, the company listed on the Taiwan Stock Exchange in October 2016.

Under the wage hike plan, almost 90 percent of THSRC's employees or 3,870, mostly low and mid-level workers, will see their paycheck grow in October. The railway operator said that entry level employees will receive a wage increase of more than 6 percent.

THSRC said the move was designed to improve the company's compensation structure by giving more to low-level employees, while also making its wages more competitive in the local employment market.

The wage hike for government employees announced by Lai on Tuesday will benefit about 580,000 civil servants and public school teachers, as well as an undisclosed number of military personnel, with effect from January next year.

The Cabinet estimates the government's 3 percent pay hike will increase its annual payroll by NT$18 billion (US$600 million).

On Thursday, the Financial Supervisory Commission (FSC), the top financial regulator in Taiwan, said that 16 financial institutions in banking, securities and insurance businesses, controlled by the FSC, will implement a 3 percent wage hike for employees, effective from January.

The 16 financial institutions include Central Deposit Insurance Corp., the National Credit Card Center of the ROC, the Taiwan Stock Exchange, the Taiwan Futures Exchange, the Taipei Exchange, the Securities and Futures Investors Protection Center and the Taiwan Insurance Institute.

On Wednesday, the Ministry of Finance said that some government-invested firms, such as Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank, plan to hike salaries by 3-6 percent.