5 major impacts of Taiwan’s basic salary adjustment in 2025 | How to avoid salary traps?

Although the increase is not the largest in history, it has set a record for nine consecutive years and is expected to affect the wages of more than 2.5 million grassroots workers..

Five major impacts of Taiwan’s basic salary adjustment

1. The real income of workers will increase, and the pressure of life is expected to be reduced

The increase will directly increase the monthly income of workers receiving basic wages by about NT$1,100. The workers who will directly benefit are mainly those in the service industry, retail industry, catering industry, manufacturing industry and part-time workers..As prices rise, raising the minimum wage will help maintain workers' basic living rights and ease the pressure of rising living costs.. However, the driving effect on the middle- and high-income groups depends on market competition and the companies' independent salary adjustments.

2. Enterprises’ personnel costs increase and operating pressure increases

After the basic salary adjustment, the company will face a direct increase in personnel costs, and a series of expenses such as overtime pay, year-end bonus, labor insurance, and pension contributions will also increase.. The following are common personnel cost components:

Including the associated welfare expenses, allowances, etc., small and medium-sized enterprises are particularly under pressure, and management needs to properly plan the salary structure to avoid violations of laws and human resources disputes.

3. Overtime pay, allowances and year-end bonuses must be adjusted

Taiwan's Labor Standards Act stipulates that overtime pay and various allowances areCalculated based on Taiwan's basic salary.Once the basic salary is adjusted, the calculation basis of related overtime, allowances, bonuses, etc. must be adjusted immediately. Here are the adjustments related to the basic salary increase:

If companies fail to adjust the above benefits in a timely manner, they will be at risk of violating the law; workers must pay close attention to salary details to protect their own rights and interests.

4. The insurance coverage levels of labor and health insurance are raised, and the burdens of the three parties change simultaneously

Taiwan in 2025After the basic salary is adjusted, the minimum insured salary range for labor and health insurance will be raised to NT$28,590., the costs shared by workers, employers and the government increased simultaneously.Adjustments to the insurance tiers mean changes in the monthly deduction amount. Companies must adjust their payroll systems in a timely manner; individuals must also check the deduction details..

5. Restructure your salary structure and beware of "trap schemes"

Under pressure to raise salaries, some companies may come up with trap-type salary designs such as "including allowances to meet the standard" or "fixed overtime pay", such as incorporating part of the allowances into bonuses, or using bonuses to offset the salary increase..Workers should confirm whether the basic wage adjustment is the "basic salary" rather than just relying on allowances and bonuses to make up the number, and pay attention to whether fixed overtime pay or changes in working hours comply with labor laws.

2025 Labor and Health Insurance Salary Grading Table (Key Summary)

Note: For part-time workers, work-study workers, etc., when their monthly salary does not reach the minimum threshold (for example, less than NT$11,100 or NT$12,540), the insurance bracket must also be adjusted in accordance with regulations.

How to avoid salary traps? Here are 5 important rules for you to know!

1. Clearly distinguish between “basic salary” and other allowances

The pay slip must clearly list the basic salary, allowances, bonuses, etc. The minimum wage cannot be offset by other items. The basic salary must be listed separately as the basic salary, otherwise it is illegal!

2. Check the amount of labor and health insurance

Check salary details to ensure that the "insured salary" of the labor and health insurance is consistent with the actual salary and meets the basic threshold to prevent underreporting of premiums and loss of future payment eligibility.

3. Be wary of fixed overtime pay or mixed working hours designs

If the so-called full attendance bonuses, allowances, fixed bonuses, etc. are used to offset salary increase obligations, they should be reported immediately and, if necessary, reported as illegal.

4. Timely compare the calculation method of overtime pay and year-end bonus

Overtime pay should be based on the new hourly wage, and year-end bonuses, if based on a multiple of monthly salary, must also increase accordingly to avoid underreporting.

5. Proactively confirm adjustment details with HR or supervisor

If after a salary increase, the details or premium changes are unclear, please confirm with HR immediately. If you encounter "wage increase not in accordance with the law", you can file a complaint with the Labor Bureau.

Common questions from both employees and companies after the basic salary adjustment

What happens if the employer does not raise wages immediately?

According to the Labor Standards Act, if an employer fails to raise wages according to regulations, he or she may be fined NT$200,000 to NT$1 million and must pay the difference plus penalty interest. This can easily lead to labor disputes and affect the corporate image.

How do part-time students adjust their salaries and get insurance?

According to the law, the minimum hourly wage is NT$190. If the monthly salary does not reach the basic threshold, the insurance level must be applied at the lower level as required, and underreporting of insurance is absolutely not allowed.

Is it legal for the salary amount to be lower than the basic salary after deducting labor and health insurance?

Labor and health insurance is a compulsory insurance. In addition to the employer's payment, the workers should also pay for their own portion of the cost. It is not illegal to pay actual wages that are lower than the basic salary after deducting labor and health insurance.

HR system and digital optimization under Taiwan's basic salary adjustment

As Taiwan's basic salary and insurance levels increase by 2025, not only should workers be self-disciplined,Companies must rely on digital tools to strengthen processes such as one-time batch adjustment of salaries, labor and health insurance, and data management..It is recommended to use a cloud-based payroll system to automatically apply the latest payroll levels to reduce the risk of errors and regulatory violations..

Conclusion

The adjustment of Taiwan’s minimum wage in 2025 will bring new opportunities to workers and corporate life, and the new law must be implemented when it comes into effect.Whether it is the workers themselves, business owners, or HR practitioners, they should be highly alert to the simultaneous adjustment of salary structure and premium brackets., strictly abide by laws and regulations and refuse vague accounts. Only by making good use of forms, checking details, and proactively communicating can this wave of salary adjustments truly become good news for the entire nation, rather than a trap crisis. Employers and employees can also use digitization and information transparency to embrace a safer, more compliant and win-win workplace future.