The Directorate-General of Budget, Accounting and Statistics (DGBAS) of Taiwan's Executive Yuan recently released the latest wage statistics for May. Benefiting from the influx of Dragon Boat Festival bonuses, the average total salary for all employees (including full-time, part-time, local, and foreign workers) surged to NT$61,902, marking a double-digit growth rate in a single month. However, behind these impressive average figures lies a significant wage distribution gap. Further analysis focusing on local full-time employees reveals that the median regular monthly wage remains below NT$40,000, indicating that as many as half of Taiwan's full-time workers earn a fixed monthly salary below the NT$40K benchmark.

Dragon Boat Festival Bonuses Boost May's Total Salary by Over 11%

According to DGBAS statistics, the average regular wage (commonly known as fixed monthly salary) for all employees in May was NT$47,796, a slight 0.08% increase from the previous month and a 2.88% year-on-year increase. However, when non-regular income such as holiday bonuses, performance incentives, and overtime pay—totaling approximately NT$14,106—is added, the average total salary for May jumped sharply to NT$61,902.

Compared to the previous month, this total salary figure saw an explosive growth of 11.56%, and it also increased significantly by 7.20% compared to the same period last year. DGBAS analysis indicates that the significant increase in total salary in May was primarily due to the timing of the Dragon Boat Festival, which fell in May this year. As many domestic companies traditionally distribute holiday bonuses just before the festival, this substantial influx of festival bonuses directly boosted non-regular wages, thereby pushing up the overall average total salary.

More Than Half Earn Less Than NT$40K? The Median Wage Reveals the True Labor Reality

Although the average total salary for all employees has surpassed the NT$60,000 mark, averages can be skewed upward by the salaries of a small number of high earners in industries such as tech, finance, or senior management, and thus may not fully reflect the real living conditions of the majority of salaried workers. Narrowing the scope to local full-time employees, the average regular wage in May was NT$50,483, with a year-on-year increase of nearly 3%; the total salary, including variable bonuses, reached NT$65,542, up 11.45% from the previous month.

However, the 'median regular wage,' which better represents the core of the wage distribution, stood at only NT$39,641 in May. The median refers to the salary of the worker exactly in the middle when all full-time workers' wages are arranged from lowest to highest. This figure falling short of the NT$40,000 threshold means that as many as 50%—half—of Taiwan's local full-time employees earn a fixed monthly salary below NT$39,641. Many salaried workers see headlines about rising average wages but find their actual fixed income still stuck in the '30K' range. This is the main reason why most people feel disconnected from the reported wage growth.

Industry Average Exceeds NT$70K! Low-Wage Crisis in Accommodation and Food Services Remains Unresolved

From a cross-industry comparison, the wage gap across Taiwan's various sectors remains extremely large. According to cumulative statistics from January to May this year, the wage levels of many livelihood-related consumer industries still lag far behind the overall average. Among them, the accommodation and food services industry, which has suffered from severe labor shortages in recent years, has an average regular wage of only NT$34,964. The 'other services' sector, including beauty, hairdressing, and item repairs, has an average regular wage of only NT$36,574. Even manufacturing, a major employment sector in Taiwan, has an overall average regular wage of just NT$45,550. Within this, the electronics components manufacturing industry, which slightly benefits from tech dividends, has an average monthly wage of approximately NT$56,813.

In contrast, industries with higher professional barriers and capital- and knowledge-intensive characteristics show a strong wage-pulling effect. The 'professional, scientific, and technical services' sector has an average regular wage of NT$57,991. The 'publishing, audiovisual, and information and communications industry,' covering software, media, and telecommunications, averages an even higher NT$69,317. The traditionally high-paying 'financial and insurance industry' leads all sectors with an average regular monthly wage of NT$70,802. The gap in fixed monthly wages between industries can exceed double.

FACT BOX

  • Source: PR Times
  • Category: Survey