Review of Wage Increase Indonesian Migrant Workers Domestic Sector in Taiwan

Abstract

Indonesia is a country that places the largest number of migrant workers in Taiwan dominated by female workers with the majority working in the domestic sector. However, the minimum wage of domestic sector Indonesian Migrant Workers working in Taiwan has not increased since 2015 at NT$ 17,000. In the meantime, the minimum wage for non-domestic workers increased annually until 2020 to NT$ 23,800. In addition to that, the amount of overtime wages of NT$ 567 is still small compared to the wages of local domestic workers. Novelty of this study is the composition of the model of adjustment of the minimum wage and overtime wage of Indonesian domestic workers in Taiwan based on academic studies. Wage adjustment using Prorate approach, namely domestic Indonesian Migrant Workers wages, is calculated using Taiwan's minimum wage increase growth approach starting from 2016 – 2020 and for overtime wages following the rules applicable in Taiwan Labor Standard Act Articles 24, 32, and 36. Over the past 4 years Taiwan's minimum wage has increased by 5% annually from 2017 to 2019, and 3% in 2020. The minimum wage of the domestic sector Indonesian Migrant Workers if it follows Taiwan's minimum wage growth becomes NT$ 20,222. Based on the calculation of the minimum wage, the overtime wage per day (≥ 8 hours) is NT$ 1,067.