In the wake of the government's announcement of a potential pay raise for public employees, many private corporations also said that they have similar plans in the works already. However, some companies complained that they felt compelled by the authorities to join the pay-raise bandwagon. But Premier Wu Den-yih later explained that he was simply making an earnest request, without trying to force the issue.

Following the government's announcement that it will increase salaries for government employees, teachers and military personnel in July, many big private corporations have also decided to follow suit, including UMC offering a 7.5% pay raise.

Many corporations have also said that they are currently working on their plans to increase employees' wages.

Those that have announced a pay raise include UMC a 7.5% pay raise, FarEasTone Telecom at 3%, while Chinatrust, Taishin Financial Holdings both offering a pay rise higher than 3%.

Yuanta Financial Holdings will implement its 3%-5% pay rise on April 1st while Formosa Plastics Corporation has decided to raise salaries by 4% on July 1st.

Companies such as Taiwan Semiconductor Manufacturing Co., Mediatek, China Steel, Far Eastern Group, Pu Fung and Uni-President have not yet decided their range for pay raise.

However, companies who suffered from severe deficit such as AU Optronics Corp., and Chimei Innolux Corporation which losses around 10 billion NT dollars may not offer pay raise.

However, some businesses said that it feels like the government is forcing them to raise wages.

In response, premier Wu Den-yih said it's the companies' responsibility to take care of its employees.

The government worked hard last year to improve the economic environment for business sector through lowering the corporate income tax rate and signing the ECFA.

Based on the statistics, the private sector has made more than NT$1.5 trillion, last year and the companies should share the bonus with their employees.

He believes that salary increase will also help to boost the economy.