Taiwan to Raise Salaries for Civil Servants, Military, and Teachers by 4% in 2025; Professional Allowances to Increase by NT$2,000

The Executive Yuan approved the "Salary Increase Plan for Military, Civil Servants, and Teachers" on the 2nd. Plan one involves a fixed increase of NT$2,000 in professional and supervisory allowances starting July 1st this year, with an estimated expenditure of NT$11.2 billion to be covered by supplementary budgets. Plan two proposes a general salary increase of 4% for the upcoming year, with an estimated annual increase of NT$38.3 billion, to be included in the 2025 central government general budget. Based on this, the starting salaries for new entrants in the civil service exams (general, intermediate, and advanced levels) next year will be NT$38,360, NT$47,700, and NT$59,460, respectively. Premier Cho Jung-tai stated that the core of the salary increase plan is to strengthen support for grassroots personnel and encourage supervisory roles, hoping for legislative support for the adjustment plan. The Executive Yuan also passed amendments to the "Act of Compulsory Service for Volunteer Soldiers," the "Act of Service for Officers and Non-commissioned Officers of the Armed Forces," and the "Act of Service for Officers and Non-commissioned Officers of the Armed Forces" on the 2nd. The current "parental leave" for military personnel, available for children aged 0 to 3, will be comprehensively upgraded to "childcare leave" for children aged 0 to 6, aligning with civil servants, teachers, and laborers. These amendments will be sent to the Legislative Yuan for review. (See full report)

The Food and Drug Administration (FDA) of the Ministry of Health and Welfare announced on the 1st that it received a report from Chun-Lien Oil, stating that a batch of soybean salad oil supplied to Taishin, Fwusow, and Fwumao was found to contain excessive levels of the carcinogen benzo(a)pyrene, prompting a recall. The affected products have been updated to 18 items across 21 batches. Major retailers, supermarkets, and convenience stores have begun removing the products and offering refunds. The FDA has requested that businesses notify distributors by 12:00 PM on the 3rd to complete the removal, or face a maximum fine of NT$3 million. The Taichung City Department of Health and Welfare announced the flow of affected oil products on the 2nd, with Fwumao supplying 138 businesses and Fwusow supplying 86 businesses, including 224 well-known food companies such as Regent Taipei, Louisa Coffee, Chia Her, Lien Hwa Foods, Kuai Kuan, and Quanta Aroma. Taishin's distribution is still being investigated by the Changhua County Department of Health. Minister of Health and Welfare Hsueh Jui-lin stated on the 2nd that this batch of oil from Chun-Lien Oil passed its self-inspection in April, and it was the downstream company "Namchow" that discovered the abnormality. Contamination has been preliminarily ruled out, and the cause related to the manufacturing process is still under investigation. (See full report)

The Executive Yuan passed the "Voluntary Contribution and Early Settlement Pension Plan for Pure Old System Laborers" on the 2nd. The plan allows pure old system laborers to voluntarily contribute to their pensions, and those who meet retirement requirements can also choose to settle their old system pensions early during the contract period with mutual agreement between employer and employee. This policy direction is expected to be implemented by the end of July. The Ministry of Labor stated that there are currently 115,000 domestic laborers under the pure old system. Using the new plan for early settlement does not mandate employers to contribute 6% of the pension after settlement. The settlement only calculates the pension based on the employee's years of service at that point in time. The employment contract is not terminated, nor is it a case of retirement and re-employment, thus not affecting the employee's original rights such as years of service and special leave. (See full report)

The Investment Commission of the Ministry of Economic Affairs held an investment review meeting on the 2nd and approved TSMC's capital increase of US$20 billion for its Arizona facility (TSMC Arizona). The funds will be used to build a 12-inch wafer fab and an advanced packaging facility, bringing the total approved investment in U.S. facilities to US$44 billion. Regarding U.S. President Trump's statement that the wafer fab under construction in Arizona is doubling in scale and will begin operations within a year, and that Taiwanese chip manufacturers like industry leader TSMC are increasing investment in the U.S. to help raise the U.S. chip market share to 50% before the end of his term, Minister of Economic Affairs Kung Ming-hsin responded that TSMC currently has 16 wafer fabs and advanced CoWoS packaging facilities announced for construction and planning in Taiwan. "No matter how many are built in the U.S. in the future, it will not reach this number," he said. (See full report)

The Taichung City Government held the "Leading 2026 - Taichung Unmanned Vehicle Industry and Overseas Business Opportunities Forum" on the 2nd, inviting representatives from the American Institute in Taiwan (AIT), industry associations, academic institutions, and unmanned vehicle-related businesses. AIT Director Brent Christensen stated in his speech that the drone industry presents a historic economic opportunity for the U.S. and Taiwan, with the potential to enter a "platinum age," jointly leading future key global technologies and providing security assurance for Taiwan and the region. Taichung Mayor Lu Shiow-yen said in her speech that the world needs drones, and this is Taiwan's opportunity. Central Taiwan possesses mature manufacturing capabilities and a complete supply chain. The central government should concentrate more resources to make central Taiwan a ready-made unmanned vehicle corridor. (See full report)

In response to China's "Law on the Promotion of Ethnic Unity and Progress," the Mainland Affairs Council (MAC) stated on the 2nd that it will strengthen the review of cross-strait exchange cases and deny permits for those with suspected united front activities. It will also study legislative amendments or new legislation to counter cross-border suppression and prohibit perpetrators from entering Taiwan. Premier Cho Jung-tai stated that this law reflects the nature of China's authoritarian rule, and Taiwan will respond from three aspects: prevention, protection, and counteraction. An "Inter-agency Cross-border Suppression Coordination Platform" at the Executive Yuan level will be established to fully protect citizens' safety. Several U.S. senators also criticized the CCP's new law as an abuse of power and an attempt to undermine other nations' sovereignty. The U.S. Department of State responded that it will defend sovereignty and protect individuals within its borders from extraterritorial overreach by foreign governments. (See full report)

Lam Wing-kee, the owner of Causeway Bay Books, passed away at Mackay Hospital in Taipei on the evening of the 2nd at the age of 70. Lam Wing-kee, a native of British Hong Kong, was the founder of Hong Kong's Causeway Bay Books. After experiencing "forced disappearance" in 2015, he received support from pan-democrats, members of the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, and a large number of Hong Kong citizens through protests. Wanted by the Chinese government for alleged illegal business operations, he fled to Taiwan during the review of the Hong Kong extradition bill in the Legislative Council in 2019. He later reopened Causeway Bay Books in Taiwan and obtained Taiwanese citizenship in 2024. In an interview with CNA in June this year, Lam Wing-kee stated that Causeway Bay Books was temporarily suspended and that whether it would reopen and when was uncertain, depending on his health recovery. He said he would open if he felt well and not if he didn't. Sources indicate that Lam Wing-kee had no family in Taiwan, but friends from Hong Kong visited him in the hospital in his final days, ensuring he was not alone. President Lai Ching-te posted on Facebook expressing his deep sorrow upon learning of Lam Wing-kee's passing. President Lai recalled visiting the reopened "Causeway Bay Books" in Taipei and meeting Lam Wing-kee, noting that while Lam spoke gently, his eyes and beliefs conveyed a firm commitment to safeguarding freedom. President Lai added that Lam Wing-kee's life bore witness to the preciousness of freedom of speech. His passing is sorrowful, but the courage he left behind will not disappear, and Taiwan will remember. (See full report)

The FDA of the Ministry of Health and Welfare recently announced a draft amendment to the Pharmaceutical Affairs Act, adding three types of emergency contraceptive drugs – Misoprostol, Levonorgestrel, and Ulipristal acetate – to the drug tracking and tracing management system. The public comment period is 60 days, sparking discussion. Several women's groups criticized the move, pointing out that many countries have already reclassified contraceptives as over-the-counter drugs and that this action infringes upon autonomy, demanding that policy prioritize women's needs. The Pharmaceutical Association of Taiwan urged for tiered management to ensure women can obtain safe and autonomous choices within the golden hour. Minister of Health and Welfare Hsueh Jui-lin stated in a legislative inquiry on the 2nd that the tracking and tracing management system already includes over 500 items, and the recent addition of three drugs is a proposal, not an immediate implementation. He assured that any future implementation would consider the need for medication and include comprehensive supporting measures, possibly referencing Japan's limited access. A final plan is expected in the latter half of the year. (See full report)

The Central Weather Administration forecasts that Taiwan will be influenced by the Pacific high-pressure system until the 8th, with generally clear and stable weather across the island and high temperatures. Localized thunderstorms are expected in mountainous areas in the afternoon. From the 6th to the 8th, moisture will slightly increase, expanding the afternoon rainfall to areas north of central Taiwan and other mountainous regions. On the 3rd, areas like Taipei and New Taipei may experience continuous high temperatures of 36 degrees Celsius during the day. Typhoon Bavi, a Category 1 storm, was located about 1,540 kilometers east of Guam at 2 PM on the 2nd, moving northwest by west towards the Ryukyu Islands. It currently poses no threat to Taiwan. The weather agency noted that Bavi is developing rapidly and could intensify into a super typhoon within the next 24 to 36 hours. Its potential approach towards Taiwan will be a key factor in the middle to late part of next week. (See full report)

Taiwanese fruits are expanding their presence in Europe. On the 1st, Tainan's Irwin mangoes and Taichung's Black Leaf lychees successfully cleared customs at Manchester Airport in the UK, marking the first batch of Taiwanese fruits to officially enter the UK through commercial import channels this year. Kris, General Manager of Cherrain Global, the import wholesaler responsible for the business negotiations, stated that the goal is to establish a "sustainable and replicable" model for exporting Taiwanese agricultural products to the UK, enabling more high-quality Taiwanese fruits to be sold in the UK long-term. (See full report)

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