Taiwan Celebrates First Real Wage Growth in Four Years, But Challenges Remain

Positive Trend Masks Growing Income Inequality

Taipei, May 12 - According to a report released Monday by Taiwan's Directorate-General of Budget, Accounting and Statistics (DGBAS), average regular wages, adjusted for inflation, saw a positive growth in the first quarter of 2025 for the first time in four years.

Real average regular wages in the local industrial and service sectors, which encompass basic salary, fixed bonuses, and allowances, increased by 0.81 percent year-over-year in the first quarter of 2025, reaching NT$43,450 (US$1,428) per month, as indicated by the DGBAS data.

Before adjusting for inflation, the average regular wages grew by 3.03 percent in the first quarter, reaching NT$47,426, according to the DGBAS data.

Despite the overall gains in real wages, a higher proportion of employees earned regular monthly wages below the national average, as stated by Tan Wen-ling (譚文玲), deputy director of the DGBAS' Census Department, during a briefing.

Five years prior, approximately 66 percent of employees earned below-average monthly regular wages. However, this figure increased to 69.77 percent in the first quarter of 2025, marking the highest recorded level, as mentioned by Tan.

The growth in the number of below-average wage earners suggests that the group of extremely high-income earners are skewing the average regular wages upwards, with their wages increasing faster than those of more average wage earners, according to Tan.

In March alone, average regular wages rose by 3.15 percent compared to the previous year, reaching NT$47,525, while average variable bonuses and overtime reached NT$7,598, resulting in average overall earnings of NT$55,123, a 3.09 percent increase year-over-year. The data shows that.

In the same month, the median regular monthly wage was NT$38,111, which is up 3.03 percent from the prior year. The DGBAS highlighted that the median wage provides a more accurate reflection of how individuals perceive their compensation levels.