How to avoid the five common misunderstandings about salary increases? A practical guide to 2025

With the implementation of the 2025 basic wage increase policy, companies and HR are facing unprecedented challenges. Faced with the chain effects of changes in salary structure and adjustments to labor and health insurance levels, if companies handle them improperly, it may not only damage labor-management harmony, but may also result in high fines and even damage the company's reputation. This report will analyze in depth "How to avoid the five common misunderstandings about wage increases", integrating legal analysis, practical experience, frequently asked questions and form instructions to help all sectors comply with the 2025 new system in accordance with the law and avoid falling into the wage increase trap.

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Salary hike key points analysis: 2025 edition

A quick look at the new salary increase system in 2025

Taiwan's basic wage will be officially increased in 2025:

• Monthly salary from 27,470 NTD Upgrade to 28,590 yuan
• Hourly wage 183 yuan Upgrade to 190 yuan
• Involving more than 2.5 million workers across Taiwan
• The rate has been increasing for 9 consecutive years, with the rate increases reaching 4.08% and 3.83% respectively.

Overview of the 5 major salary increase misunderstandings

Management Mistake 1: The High Risk of Not Immediately Adjusting Salaries

Legal red line: the seriousness of delayed salary increase

According to the Labor Standards Act, employers who fail to adjust the basic salary in accordance with regulations will face administrative penalties and employee prosecution. Whether salaries can be adjusted immediately is not only the responsibility of accountants or HR, but also the bottom line of the company's sustainable operation. News investigations pointed out that some business owners delayed or forgot to increase salaries. After being reported by employees, they not only had to make up the difference, but were also fined NT$20,000 to NT$1 million. In serious cases, the case was even exposed by the media, causing damage to the company's image.

Common Penalties Summary

suggestion: HR and employers should establish a "regular tracking mechanism for regulatory information", review salary details at important points (such as the end of the year and the beginning of the year), adjust salaries in a timely manner, and make good use of the salary system to automatically synchronize updates.

Management Misunderstanding 2: Ignoring the Synchronous Adjustment of Overtime Pay

Salary increase affects overtime pay, "no algorithm update" hides crisis

Overtime pay must be adjusted along with the increase in base salary. If only the base salary is adjusted but the old salary is still used to calculate overtime pay, it is very likely to be illegal and lead to employee complaints.

• For example: when the hourly wage of 183 yuan in 2024 is adjusted to 190 yuan in 2025, the overtime pay multiples (1.33/1.66 on weekdays, 2 times on holidays) must be calculated using the new hourly wage.

Management focus: Supervise the synchronization of automatic overtime pay calculation systems to avoid manual errors and prevent the risk of monthly data gaps.

Management Misunderstanding 3: Failure to Adjust the Salary Range for Labor and Health Insurance

Violating regulations for insurance may lead to fines! Adjustment of insurance coverage cannot be ignored

After January 1, 2025,Labor and Health Insurance Salary Grading TableIf the old insurance rates are increased simultaneously, employers who still use the old insurance rates will be considered "underinsured" and will run the risk of violating the law.

2025 Insurance Salary Grading Table (Part)

HR needs to confirm:

• All full-time employees must be insured at least at the first level of the new system
• Part-time workers (part-time workers) can be declared starting from NT$11,100/NT$12,540 according to the prescribed level.

Smart HR tools help: cope with salary increases and increase efficiency

Facing complexSalary increaseProcesses and effective HR digital tools have become the key drivers for enterprises. For example, the "Femas HR System" provides functions such as one-click adjustment of salary grades, batch transfer of employee salaries, and automatic conversion of overtime pay, which greatly reduces the errors and tediousness of manual adjustments by HR.
If used appropriately with marketing platforms that connect diverse talent resources, such as "AffiMarket Easy Alliance", short-term project manpower can be further flexibly deployed to share the impact of increased labor costs.

List of recommendations for the next phase: actions that companies/HR must take in 2025

• Regular regulatory follow-up: Confirm new standards for salary and insurance premiums at the beginning of the year
• Importing cloud payroll system: Improve adjustment efficiency and avoid human errors
• Enhanced salary structure description: Make payroll details transparent to avoid labor disputes
• Synchronously adjust the overtime pay algorithm: Update on the dual-track regulations on wages and overtime pay
• Standard procedures for part-time and working students: Regularly audit hourly wages and insurance levels
• Working with professional consultants or digital platforms: Reduce errors and get the latest information

As the salary increase in 2025 is unprecedented, companies can only achieve steady development and preserve their brand reputation by abandoning wrong thinking, making good use of digital management tools, and implementing compliance spirit. The best way to avoid the risks of policy shifts is for all sectors to face up to the above five misunderstandings and make adjustments step by step. Experts suggest that only by establishing a regulatory information receiving mechanism and efficient digital HR management can 2025 be a win-win year for companies and employees.