Taiwan’s average real monthly wage rose 0.96% to NT$43,572 (US$1,489) in the first five months of 2025, the highest gain in five years.

Overtime surged in the electronics sector due to AI demand and US tariff shifts, with 11,000 new jobs added year-on-year.

The average nominal monthly wage, not adjusted for inflation, rose by 3.02% year-on-year to NT$47,568 (US$1,626), marking the highest growth in 25 years.

The consumer price index (CPI) increased by 2.04% during this period, a decrease from 2.15% in the previous four months.

However, it still remains above the central bank’s 2% alert level.

Nominal monthly earnings, which include overtime pay and bonuses, grew by 7.20% year-on-year to NT$61,902 (US$2,116).

After adjusting for inflation, real monthly earnings increased by 1.65% during the same period.

In May 2025, nominal wages rose 2.88% to NT$47,796 (US$1,634), and the median regular wage increased 2.59% to NT$38,224 (US$1,306).

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Taiwan’s wage growth reversal marks potential end to decades-long stagnation

Taiwan’s 3.02% nominal wage growth represents a significant economic shift after years of stagnant wages despite GDP growth.

For over two decades, Taiwan has experienced wage stagnation that pushed it behind regional peers. The average monthly wage was just $1,510 in 2016, placing Taiwan closer to Mexico than other developed Asian economies 1.

The gap between economic growth and worker compensation has been persistent. While Taiwan maintained strong GDP metrics, real wages actually decreased by 0.78% in 2023 2.

This new growth trend signals a potential breaking point in what economists have identified as a structural problem, where Taiwan’s manufacturing profits and exports grew while domestic wages remained suppressed since the mid-1990s 3.

The current 0.96% real wage growth (after inflation adjustment) represents the largest increase in five years, suggesting meaningful economic change rather than a temporary fluctuation 4.