Base Pay 2024 Announcement: Avoid These Three Common Misconceptions

With the official announcement of the 2024 minimum wage increase, many workers and business owners are paying attention to the implementation details of the new standards. Starting from January 1, 2024, the basic monthly salary will increase from 26,400 yuan to 27,470 yuan, and the hourly wage will increase from 176 yuan to 183 yuan. The overall adjustment is 3.92%, which will benefit many workers who rely on basic wages. To avoid disputes caused by policy gaps, this article will focus on three common misunderstandings and provide professional analysis.

Basic salary 2024 announcement highlights

Basic salary adjustments for 2024

The latest basic salary standards for 2024 are as follows:

Important points to note:The new system will take effect on January 1, 2024. Employers must adjust according to the new standards. Violators will face relevant Labor Standards Law Punishment.

Avoid misunderstanding 1: “Basic salary is not the minimum wage for all employees?”

Actual coverage and judgment criteria

Many people mistakenly believe that all employees’ “salaries” are protected by the basic wage. In fact, onlyLabor Standards Act》Applicable persons must comply with this standard. For example, some foreign workers, contract employees, some dispatched or domestic workers, etc. may not be subject to this adjustment. In addition, some companies mix allowances or allowance-like bonuses into the base salary in their salary structure, mistakenly believing that it is compliant, which is also a common misunderstanding.

Regulatory Reminder

• Article 21 of the Labor Standards Act: It is stipulated that all workers who are bound by an employer and engaged in paid labor shall be subject to a minimum wage, unless otherwise provided by law.

How to divide regular salary and non-recurring salary?

Recurring salary: refers to the salary items that appear repeatedly in the monthly payroll, such as basic salary, fixed allowances, etc.

Non-recurring wages: refers to occasional or irregular payments, such as year-end bonuses, dividends, overtime pay, etc., which are not included in the basic wage guarantee.

Tip: If the total of basic salary + allowances does not meet the standard, the employer is breaking the law.

Avoid misunderstanding 2: "As long as the base salary is adjusted, it will comply with the regulations?"

Frequently asked questions about salary structure adjustment

Some companies think that increasing the “base salary” is enough, but companies with complex wage structures may need to simultaneously review allowances and overtime pay calculations to avoid chain violations.

The impact of wage adjustments on other labor rights

According to the Labor Standards Act, the increase in the minimum wage will also affect Labor Insurance, labor pension, and overtime pay calculation base.

• Labor Insurance: Based on the new monthly salary, the premium may increase accordingly.
• Labor retirement contribution: The minimum is 6%, and employers are required to make contributions according to the new standards.
• Overtime Pay: The calculation is based on "base salary" and must be recalculated after salary adjustment.

Example: Changes to overtime pay calculations
Assuming that the employee's basic salary in 2023 is RMB 26,400, the adjusted salary will be RMB 27,470. The hourly overtime pay = base salary ÷ 240 × 1.33 times, and the employees’ overtime pay will increase accordingly.

Information summary: With the implementation of the new system, companies should proactively review all wage structures to ensure that they all comply with legal standards.

Avoid misunderstanding three: "Companies will inevitably suffer losses if they raise wages, and there is no way to deal with it?"

Key to actual management and profit and loss adjustment

Many business owners have concerns, believing that the "Minimum Wage 2024 Announcement" will lead to a sharp increase in labor costs, and they can only passively accept a decrease in profits. In fact, the impact can still be reduced as long as we respond properly.

Six Management Strategies (For Business Owners)

1. Comprehensive salary review: The system quickly checks the current salaries for each job level and identifies those who fail to meet the new standards.
2. Optimize working hours: Allocate work schedules reasonably to reduce overtime expenses.
3. Flexible employment of manpower: Adjust the workforce according to peak and off-season conditions and actual demand, and make good use of part-time and temporary workers.
4. Improve work efficiency: Introduce automated and digital management to reduce dependence on manual labor.
5. Delivery policy description: Proactively communicate with employees about the policy implications and reasons to reduce backlash.
6. Organizational cost budget adjustment: Evaluate the overall operating structure and appropriately reflect this in selling prices or product updates when necessary.

FAQ: Basic salary 2024 announcement quick breakdown

Which workers are eligible for the minimum wage increase?

All workers subject to the Labor Standards Act are subject to the law, including full-time, part-time, and temporary workers; some special groups, such as foreign domestic workers, who are not subject to the Labor Standards Act are excluded.

If the salary structure includes multiple allowances, do they also need to be adjusted?

As long as the "base salary" and all regular wages "added up" still do not meet the new standard, the employer must make up the difference.

What happens if the business does not adjust?

According to Article 79 of the Labor Standards Act, employers who violate minimum wage regulations may be fined up to NT$1.5 million and ordered to make improvements within a specified period of time.

What the Minimum Wage 2024 Announcement means to society as a whole

In addition to directly improving grassroots salary levels, this increase in basic wages will also boost consumption in surrounding industries, improve the social distribution structure, and bring about a positive chain effect. It is not only an indicator of the progress of labor rights, but also a stress test of the management quality of enterprises. For companies that want to operate legally and in the long term, only by proactively complying with regulations and strengthening internal scheduling can the salary adjustment policy turn a crisis into an opportunity.

along withBasic Salary 2024 AnnouncementIts formal implementation is not only an important guarantee for the rights and interests of workers themselves, but also related to the compliance and competitiveness of employers' management. Whether you are a general consumer, a worker or a business owner, it is necessary to correctly understand the policy intentions and practical impacts behind the "minimum wage increase" and make preparations and timely adjustments. In the future, only by ensuring transparent information and implementing regulations can we achieve a win-win situation for labor and capital and create steady social and economic development.