What does the basic salary include? 5 Important Elements You Can’t Ignore

With the implementation of the new Minimum Wage Law, basic wage has become a core issue of concern to both labor and management. The minimum wage is directly related to the rights and interests of millions of workers across Taiwan, and also affects the adjustment of employers' salary structure. What exactly does the basic salary include? The article will provide an in-depth analysis of five important elements.

Legal definition and core scope of basic salary

What is "basic salary"?

Basic wages refer to the fixed remuneration actually received by workers for the services they provide during "normal working hours".According to Article 5 of the Minimum Wage Law, when employers and employees negotiate wages, the wages must not be lower than the statutory minimum wage standard. This protection means that even if the parties privately agree on an amount lower than the base salary, the statutory amount must still be paid.

Basic salary structure

Basic salary includes fixed remuneration generated by work under various names, and is not limited to basic salary or fixed monthly salary.Regular payments made by employers, such as salary, hourly, daily, monthly, piece-rate wages, and cash or in-kind allowances provided based on work, are also part of the basis for calculating basic wages.

What items are not included in the basic salary?

Overtime pay, additional pay for rest days, statutory holidays and special festivals, and non-recurring bonuses (such as year-end bonuses and dividends) are not included in the basic salary.Employers may not deduct such additional payments from the statutory wage amount.

5 Elements of Labor Compensation You Can't Ignore

1. Basic salary

Basic salary is the basic remuneration agreed upon by both employers and employees and is the most basic element of basic wages.If the monthly minimum wage is 28,590 yuan, the basic salary must not be lower than this standard. However, if there is only basic salary and other items are not included, there is a risk of underreporting.

2. Fixed allowance (including full attendance bonus)

All those included in the payroll, closely related to actual work and regular, such as attendance bonuses, position allowances, and technical allowances, are included in the calculation of basic salary.The condition is that it is "continuously given in exchange for normal work".

3. Piece-rate wages

If wages are paid on a piecework basis, as long as the total statutory minimum wage is reached, it is considered to be in compliance with the law.However, employers must still ensure that the workers' monthly salary is not lower than the basic salary of the year after conversion.

4. Cash or in-kind subsidies

In addition to cash, items distributed in kind (such as meal coupons and merchandise) that can be consumed in normal life also fall under the category of wages and can be included in the calculation of basic salary.

5. Other regular grants

If there are other provisions in the salary conditions, such as transportation allowance, food allowance, housing allowance, etc., and they are paid on a fixed monthly basis, they must also be included in the "basic salary". However, if it is only paid during a specific period of time or is of a compensatory nature, it will not be included.

What is included in the basic salary?

Basic wage practice FAQs and case analysis

Will taking leave affect my basic salary?

If a worker fails to provide labor services due to personal leave or sick leave, his or her "actual salary" will be deducted proportionally from the wages for that day. However, the amount paid for normal months without leave must not be lower than the statutory basic wage.

The salary is already higher than the basic salary, does it need to be adjusted?

If the wages paid by an employer are already higher than the officially announced minimum wage, there is no need to increase wages additionally due to a slight adjustment in the basic wage. On the contrary, if it is lower than the statutory standard, it must be adjusted according to law.

What are the minimum standards for hourly, day-rate or piece-rate work?

Regardless of whether it is monthly salary, hourly salary or piecework salary, the total monthly salary after calculation shall not be less than< a href='https://affimarket.org/2025/04/23/%E5%9F%BA%E6%9C%AC%E8%96%AA%E8%B3%872025%E5%B9%B4%E8%A7%A3%E6%9E%90%EF%BC%9A%E4%BD%A0%E4%B8%8D%E8%83%BD%E5%BF%BD%E8%A6%96%E7%9A%843%E5%A4%A7%E8%AE%8A%E5%8C%96/'>Basic salaryor an equivalent hourly wage; exceptions must be clearly stated in the employment contract.

The close relationship between basic salary and salary structure

The clearer the salary structure, the more secure the rights and interests. "What does the basic wage include" involves all salary and subsidy items, which both employers and workers should understand and implement.

In addition, reasonable planning of the salary structure not only guarantees the basic living of workers, but also helps companies retain talent and establish good employment relationships.

Do you understand what basic salary includes? Faced with diversified wage programs, not only workers but also business owners must not ignore the details of protecting the rights and interests of both labor and management. In the future, as prices and social expectations develop, the content, classification, and subsidy structure of the basic wage may keep pace with the times. Please continue to pay attention to the latest regulatory changes to ensure that your rights and interests are properly protected.