Taipei: The Formosa Plastics Group (FPG), one of Taiwan’s largest conglomerates, has announced a decision to increase employee wages by 2 percent, effective retroactively from July 1. This decision comes despite the company’s major entities experiencing significant financial losses in the first half of the year.

According to Focus Taiwan, FPG President Wang Wen-yuan agreed to the wage increase during a meeting with representatives from the group’s worker union. As a result of the wage hike, FPG employees will see an average monthly salary increase of NT$1,190 (approximately US$39.75), with the average wage surpassing the NT$60,000 threshold for the first time, reaching NT$60,373.

Lin Shan-chih, head of FPG’s business management committee, addressed reporters about the challenging global economic conditions impacting the company, including U.S. tariffs and foreign exchange losses. The petrochemical industry, in particular, has been weak, leading to the four major entities of FPG-Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals and Fibre Corp., and Formosa Petrochemical Corp.-reporting net losses totaling approximately NT$21.32 billion. This is in stark contrast to a net profit of NT$15.68 billion from the previous year.

Despite these operational challenges, Lin emphasized that FPG considered the impact of inflation when deciding to raise wages during the annual wage review. The aim is to support employees financially amid rising living costs.

Taiwan’s consumer price index (CPI) rose by 1.87 percent in the first seven months of this year, as reported by the Directorate General of Budget, Accounting and Statistics (DGBAS). The CPI is projected to increase by 1.88 percent for the entire year of 2025.

In a related development, Shinkong Synthetic Fibers Corp., a prominent Taiwanese textile manufacturer, has announced plans to increase wages by 2 to 4 percent based on employee performance, starting September 1, as part of its efforts to retain talent.