【2025】How to improve employee satisfaction through Taiwan’s minimum wage adjustment?

As Taiwan’s minimum wage is about to be adjusted in the new year of 2025, companies are once again facing major tests in their organizational operations and human resource management strategies. The basic wage for the monthly wage system will be increased to 28,590 yuan from New Year's Day 2025, and the hourly wage system will be increased to 190 yuan, which is expected to affect more than 2.5 million workers. How to turn this wave of salary increases into promotions Employee SatisfactionThe opportunity to improve corporate competitiveness is an important issue that managers and human resources cannot ignore.

Background and key points of Taiwan's minimum wage adjustment

Base salary adjustment milestones

Since 2016, Taiwan's grassroots workers' wages have been increasing year by year, showing that the government is actively responding to prices, living pressures and international trends. The adjustment range of Taiwan's basic salary in 2025 is as follows:

After the adjustment, the living security of most grassroots employees in the industry has been effectively improved, and vulnerable groups such as foreign migrant workers have also been affected.

Policy impact

• About 2.05 million local workers and 368,000 foreign workers benefited
• Covering most areas such as catering, retail, manufacturing, and service industries
• Re-examination of corporate compliance and salary structure has become an urgent task

Key compliance issues that companies should focus on

According to Article 21 of the Labor Standards Act, all wages must not be lower than the "Taiwan Minimum Wage" standard. Violators will be fined between NT$200,000 and NT$1 million, and the violation information will be made public, damaging the corporate image.

How can enterprises adjust basic wages and improve employee satisfaction?

Salary adjustment is not the only thing - all-round benefits upgrade

Although Taiwan basic salaryThe salary increase directly raises the contract wages of some workers, but it is difficult to fundamentally get rid of the rising job-hopping rate and employee dissatisfaction relying solely on basic salary increases. Businesses should:

• Review the overall compensation structure: adjust relevant allowances, bonuses, and benefits simultaneously, not just basic salary.
• Create differentiated benefits: such as flexible get off work hours, group insurance upgrades, employee activities, etc., to highlight corporate care.
• Establish internal promotion and skills training channels: assist employees in their career growth and improve long-term satisfaction.

Communication and participation: Adjusting policies to be transparent

Adjusting the basic salary is not just an announcement, it is also about making employees feel respected.

• Hold communication seminars, proactively explain the logic of salary structure revision, and collect employee opinions
• Announce the timetable and principles for salary and benefits adjustments to reduce tension and anxiety
• Promote interaction between department heads and grassroots colleagues, and allow grassroots colleagues to participate in system design

Establish a reward mechanism to strengthen positive momentum

After the salary increase, if combined with Performance Bonus, team incentive mechanism, can greatly improve work input.

• Set performance bonus thresholds or challenging goals to let colleagues see that "hard work is valuable"
• Strengthen rewards for teamwork and foster organizational cohesion
• The rating system is transparent and strengthens the sense of fairness

Flexible working hours and workplace friendliness: the key to welfare upgrade

Combining rationality and sensibility, Employee sense of belongingImprove immediately.

Management's self-expectation: Demonstration is the most important

• Management takes the lead in committing to implement adjustments and attaches importance to "doing what they say"
• Actively communicate when encountering difficulties in salary adjustment and show your sincerity in solving the problem
• Lead the team to face the changing environment head-on and guide the upgrading of corporate culture

The actual impact of Taiwan’s basic wage adjustment on employee satisfaction

Employee satisfaction and turnover rate are related

A survey of domestic companies found that when basic wages are raised, employees’ sense of job security and satisfaction with their quality of life both increase, while their tendency to leave decreases significantly. The following are the survey results of a large service industry in Taiwan before and after the 2023 salary adjustment:

It can be seen that the implementation of Taiwan’s basic wage adjustment combined with overall salary optimization will have a far greater effect than simply raising salaries.

Linking talent acquisition and employer branding

When companies actively promote compliance and exceed benchmark salaries, it helps

• Building a high-quality employer brand
• Attract young and professional talents
• Build a positive reputation and reduce recruitment costs
• Promote departmental collaboration and team stability

Improve employees’ psychological safety and sense of belonging

When colleagues realize that their salary calculation is reasonable and their working hours and benefits are complete, not only will their lives be secure, but they will also develop loyalty to the company. This is the fundamental key to driving the stable development of the organization and reducing management costs.

Recommended HR Management Checklist: How to Take Advantage of Taiwan's Minimum Wage Adjustment to Create a Win-Win Situation

• Plan salary structure adjustment schedule in advance to avoid temporary and passive response
• Full participation to establish a two-way feedback communication channel
• Simultaneously review multiple incentive measures such as welfare and allowances
• Establish FAQ and education and training resources to help supervisors respond to colleagues' questions correctly
• Implement compliance and proactively submit adjustment results to the competent authorities
• Combine salary adjustments with team development and performance appraisal to enhance unity and growth motivation

Enterprise Practice Checklist (Table)

Practical Q&A on how companies can respond to Taiwan's minimum wage adjustment

Q1: If the company's original salary is already higher than the basic wage, is it necessary to adjust the salary?

A: It is not required by law, but it is recommended to review the salary structure and incentive plan at the same time. Especially when the market is generally adjusted upward, it is even more important to maintain competitiveness.

Q2: Are part-time, seconded or loaned workers protected?

A: In principle, all workers subject to the Labor Standards Act must comply, including part-time, dispatched, and foreign workers.

Q3: Salary adjustments will increase the burden on employers. How can we respond positively?

A: Salary increases should be viewed as an investment in the future of the organization, with the expectation of finding a balance between reducing employee turnover and improving productivity. Processes or digital tools can also be reviewed simultaneously to improve management efficiency.

Employee Satisfaction Upgrade Trend and International Perspective

Taiwan keeps up with international trends. Major economies (such as Japan, South Korea, Germany, etc.) continue to adjust their minimum wages to strengthen corporate social responsibility and thereby attract and retain talent. In Taiwan, implementing the adjustment of Taiwan's minimum wage will not only be a compliance issue, but also a reflection of corporate image, transformation and talent competitiveness.

Talent management must keep pace with the times - full play of teamwork

When adjusting the basic salary, if the company can take the initiative to:

• Strengthening the communication mechanism between labor and management
• Invest in employee training and motivation
• Shaping a "Co-creating the Future" culture

Not only can it successfully navigate the regulatory adjustment period, but it can also transform into a new generation of enterprise with high employee satisfaction and a good brand image.

As Taiwan’s minimum wage adjustment reform is approaching in 2025, only by putting people first, upgrading all-round benefits, and actively communicating, respecting diversity and openness can the effectiveness of the wage adjustment be maximized and a win-win situation for companies and employees truly achieved.

In the fiercely competitive talent market of the future, only by caring about employees and emphasizing institutional fairness can we win the trust of employees and social recognition. This wave of salary policy increases comes at a critical moment for corporate organizations to upgrade and innovate themselves.