The Ministry of Labor recently estimated that due to the increase in the minimum wage, including various social insurances such as labor and health insurance and labor pensions, the total cost of monthly salary workers will increase by 28.06 billion yuan next year. Schematic diagram. (Bloomberg file photo)
[Reporter Li Lianghui/Taipei Report] Starting from January 1, 2020, the minimum wage monthly salary will be increased from the current 29,500 It is estimated that a total of 1.827 million workers will benefit from the increase to 30,900 yuan. The Executive Yuan has started the approval process yesterday. According to the latest estimates from the Ministry of Labor, due to the increase in the minimum wage, including various social insurances and labor pensions such as labor and health insurance next year, the total cost of monthly wage workers will increase by 28.06 billion yuan, and hourly wages will increase from 196 yuan to 205 yuan. The annual increase cost is estimated to be 7.53 billion yuan.
Huang Qiya, director of the Department of Labor Conditions and Employment Equality of the Ministry of Labor, pointed out that the minimum wage will be increased to 30,900 yuan per month next year, including labor insurance, health insurance, employment insurance, occupational disaster insurance and a 6% labor pension provision. The relevant amounts will also increase accordingly. In addition, , it was originally planned to increase the labor insurance ordinary accident rate by 0.5 percentage points next year, from the current 12.5% to 13%. Taking into account various social insurance and pension factors, the total premium cost for monthly salary workers in one year will increase by 28.06 billion yuan.
Further breaking down the share of labor, employers and the government, the labor burden increased by 1.24 billion yuan, the employer burden increased by 26.146 billion yuan, and the government burden increased by 674 million yuan.
The wages of hourly wage workers will increase from 196 yuan to 205 yuan. The number of beneficiaries is estimated to be 784,600 yuan, and the total annual cost will increase by about 7.53 billion yuan. This includes 6.548 billion yuan borne by employers, 605 million yuan borne by workers, and 384 million yuan borne by the government.
Huang Qiya emphasized that only "employed workers" are affected by the minimum wage, so the above cost statistics are limited to the direct costs incurred by "employed workers" due to the increase in the minimum wage, and do not include non-employed insured persons such as professional unions in the estimate.
Regarding some employers’ complaints about the high proportion of social insurance and pension burdens, Li Jianhong, Parliamentary Undersecretary of the Ministry of Labor, pointed out that although my country’s employer burden ratio for labor insurance/insurance insurance reaches 70%, which is higher than that of some OECD countries, due to the relatively low social insurance rates in my country, the actual amount of employer premiums increased due to salary increases is not particularly high. Even with the provision of health insurance and labor pensions, it ranks about 18th or 19th in the middle class among OECD countries.
