Taipei, Dec. 27 (CNA) The Minimum Wage Act was signed into law by President Tsai Ing-wen (蔡英文) on Wednesday, according to the Ministry of Labor (MOL).
The ministry said in a statement that the new law covers areas including the establishment of a minimum wage review committee, the adoption of various indices as a reference for wage adjustment plans, and the formation of a research panel.
The act, which stipulates minimum wages in Taiwan should be adjusted in line with the annual consumer price index (CPI) rise, was given the green light by the Legislative Yuan on Dec. 12.
The new law also stipulates wages decided during negotiations between employers and workers must not be lower than the minimum wage, with companies violating the rule to be subject to a fine of up to NT$1.5 million (US$47,600).
The others are regulations related to review procedures, processes to determine minimum wages, and penalties.
According to the ministry, the Executive Yuan will determine when the new law will take effect.
