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Taiwan raises minimum wage by 1.42%

Taiwan's Premier Jiang Yi-hua on Tuesday approved a controversial 1.42 percent increase in the island's monthly minimum wage because of an improving economy.

TAIPEI: Taiwan's Premier Jiang Yi-hua on Tuesday approved a controversial 1.42 percent increase in the island's monthly minimum wage because of an improving economy.

The move was put on hold by Jiang's predecessor Sean Chen last September, prompting the resignation of labour minister Wang Ju-hsuan amid dire warnings from business leaders on the potential impact of the hike to Tw$19,047 (US$639).

But the former premier had agreed to review the move if Taiwan's GDP grows more than three percent for two consecutive quarters.

Taiwan's export-reliant economy gained strength in the fourth quarter of 2012-13 as it grew 3.72 percent year-on. The economy is expected to grow 3.26 percent in the first quarter, although the government has not yet released the final figures.

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