【2025】Five financial traps you don’t know about after Taiwan’s minimum wage adjustment

In Taiwan in 2025, as the minimum wage adjustment is officially implemented, it will not only affect the lives of grassroots workers, but also bring a series of economic chain reactions to all employees and young people who are planning for the future. The news team compiled expert opinions and revealed the five most common financial traps that workers often overlook but need to pay attention to in this wave of salary adjustments, to help you get a salary increase and also keep your wealth!

Analysis of Taiwan’s new minimum wage system and adjustment in 2025

Overview of this year's minimum wage adjustment and the number of workers who benefited

Starting from 2025, Taiwan's minimum wage increasesAccording to the announcement of the Ministry of Labor, the monthly salary increased from 27,470 yuan to 28,590 yuan, and the hourly wage increased from 183 yuan to 190 yuan. This not only affects 2.57 million grassroots workers, but also affects the personnel costs and consumer prices of all industries.

The record of wage increases for nine consecutive years shows that the government continues to pay attention to the lives of workers, but there are many financial impacts behind the wage increase that "you may not have expected".

Changes in life and financial structure brought about by Taiwan’s minimum wage adjustment

Salary increase ≠ increase in actual amount received? Deduction details fully decrypted

Many workers think they become "richer" after a pay raise, but after deducting labor insurance, health insurance and other withholding items, the amount of money they actually receive may not actually increase significantly. In 2025, Labor insurance premium rateIt will be raised to 12.5%, and the insurance levels will also rise simultaneously. Most people will have to pay tens to hundreds of yuan more each month. These ignored expenses will significantly compress actual disposable income in the long run.

Key point: As deductions increase, do not overestimate the amount of money you can use freely after the "salary increase."

Rising inflation and more expensive consumer goods may wipe out the benefits of wage increases

Historical statistics show that after the minimum wage is raised, the prices of common expenses such as eating out and daily necessities generally tend to rise. In 2025, both the engineering and service industries will face pressure to adjust prices. Consumers should not ignore the resulting increase in daily expenses.

Five financial traps to avoid after the minimum wage increase

Trap 1: Ignoring the phenomenon of "tax burden increases with salary"

An increase in wages means that the tax base for income tax and insurance premiums will also rise. Especially for those whose wages just fall into the next tax bracket, the actual increase in net income is limited. When making a financial plan, you need to make a careful assessment to avoid overestimating your financial available funds.

Experts remind: Those who estimate that their new income will fall into a new tax bracket should declare and adjust their reserved taxes in advance to reduce the pressure of paying taxes during the tax filing season.

Trap 2: Excessive consumer optimism and no savings goals

"Why can't I save money after a salary increase?" Most young people don't feel like saving after a salary adjustment because their consumption upgrades and they equate a salary increase with extra pocket money. Any extra income you get each month, even if it's just a few hundred dollars, should be put into an automatic savings or investment plan.

Financial Planning Advice Form

Key points: Save first, spend later, and don’t be blinded by the “salary increase illusion”.

Trap 3: Failure to adjust the labor and health insurance level risk immediately

Whenever the minimum wage is adjusted, the labor and health insurance levels will inevitably be revised upward. If the employer does not make immediate adjustments, it may lead to subsequent disputes over insurance payments, and the amount of payments will be reduced in the event of an occupational accident or medical need in the future. Check the insurance coverage level on your own. If you find that it is not met or is abnormal, you should proactively communicate with the HR department to protect your legal rights and interests.

Trap 4: Ignoring the long-term inflationary effects of prices

The salary adjustment may not be greater than Consumer inflation. The slowly accumulated inflation will eat up the positive effects of past wage increases. In 2025, price adjustment information for various daily necessities, food and transportation has been announced in some areas.

Comparison table of Taiwan's CPI inflation rate and minimum wage adjustment in recent years

• Official data, **expert estimates

Recommendation: Gradually build up anti-inflation investments, such as ETFs and funds, and review the actual purchasing power of cash positions every year.

Trap 5: Relying solely on salary without diversifying income sources

Taiwan's minimum wage has been raised, and while some people have benefited from the pay raise, the living standards of some others have not kept up with the pace of growth. In the new era, the "single-income group" has significantly lower risk resistance. Be sure to make good use of your after-get off work time or online resources to develop a second income, a slash skill, or online passive income opportunities.

Tips for financial security and self-protection: What you should do in the era of price hikes

Remember to review your income and spending structure every year

Every adjustment to the minimum wage represents a change in financial flows. It is recommended to regularly review your own "spending and income" structure, adjust your family budget, and do not blindly rely on old consumption patterns.

Actively learn financial management knowledge and pay attention to changes in regulations

In Taiwan in 2025, the thresholds for operating digital financial management channels, online banking, and securities accounts have been greatly lowered. Actively learning financial management courses such as ETF funds, real estate, and retirement plans will help to diversify risks and expand the space for wealth growth.

Make good use of modern resources to expand income and protection

Whether it is part-time work, starting a business, online promotion or project cooperation, many affiliate marketing platforms in Taiwan can expand your income sources. by AffiMarket Easy AllianceFor example, the platform combines resources from multiple industries such as tourism, shopping, and AI. Whether you are a blogger, YouTuber, internet celebrity, or an ordinary office worker, as long as you are familiar with the basic operations of affiliate marketing, you will have the opportunity to create passive income without any capital. The platform also provides free affiliate marketing teaching and consulting services for a long time, which greatly improves the efficiency of entry.

As Taiwan's minimum wage has been raised one after another, people are passively getting "a little more salary", but external pressures such as high inflation, taxes, social insurance, and consumption patterns are also rising. If you can avoid the five major financial management traps mentioned above, plan your capital flows in depth, and add diversified income and anti-inflation measures, you will be able to maximize the positive benefits of the 2025 wave of wage adjustments and make salary increases a real new starting point for wealth growth.

A reminder to all Taiwanese workers and young people: the era of low wages is over, and the golden age of financial management and self-growth has just begun!