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Achieving no poverty

Our Advanced English class recently explored “Sustainable Development Goal 1 — No Poverty,” in which we discussed Taiwan’s minimum wage increase and poverty in Taiwan.

While increasing the minimum wage might seem like a sufficient solution to poverty, statistics suggest otherwise. People who live in urban areas tend to need way more money than the minimum wage just to survive. The price of daily essentials and house prices have skyrocketed, meaning people need significantly more.

A static minimum wage establishes a higher floor for pay, but it does not guarantee enough income for basic needs. A living wage is calculated from daily essentials such as rent, food and healthcare. Due to the price inflation of daily essentials, raising the minimum wage does not entirely solve the problem.

While the minimum wage could be enough for someone living in a rural area, a realistic minimum living wage in urban areas such as Taipei is roughly NT$40,000. That is significantly higher than the minimum wage, which is about NT$30,000.

Despite the protection of the minimum wage being able to provide basic life quality for most workers, some vulnerable people whose working hours and income are not stable can be overlooked. One significant example is freelancers. The minimum wage policy simply does not cater to them, because their basic income is not guaranteed.

More pay will improve quality of life when living costs stabilize or even go down — when money goes further. Policies that change the high and unaffordable costs of living in urban areas should accompany the hike.

Childcare subsidies offer a useful example. Beginning in January 2024, eligible families receive a subsidy of NT$13,000 per month for their first child up to age two. That kind of support can ease financial pressure and help parents remain in employment.

Another example is public transportation assistance. The NT$1,200 T-Pass regional transit card covering Taipei, New Taipei City, Keelung and Taoyuan helps people lower commuting costs. These policies are only the tip of the iceberg of social welfare measures.

If Taiwan is to advance Sustainable Development Goal 1, policymakers must ensure that having a job also means having a realistic chance of escaping poverty.

Raising the minimum wage is an essential step to solving poverty, but protecting real purchasing power and securing income are vital for vulnerable people.

Comprehensive reform and accessible public services should be established alongside hiking the minimum wage.

To advance the first Sustainable Development Goal, the government should combine wage adjustment with accessible public services and subsidies.

Huang Chih-wei

and Sebastian Erasmus

Taipei