Household Income Gap Reaches 14-Year High in Taiwan
By Hank Hsu/Lily LaMattina
Taiwan’s household income gap has widened to its highest level in 14 years, with the top 20% of households earning an average disposable income 6.2 times that of the bottom 20% in 2025. The government says Taiwan’s AI boom and semiconductor industry growth have driven larger income gains among top earners.
REPORTER:
It's getting harder and harder for young families to buy a home, especially in the expensive capital of Taipei. It comes amid a widening income gap putting pressure on families.
Ms. Tsai (TAIPEI RESIDENT):
Buying a home in Taipei is difficult if you don't have financial support from your parents. So my daughter says at best her colleagues live in New Taipei City.
REPORTER:
Taiwan’s government released its annual household income survey this week. It found that in 2025, the top 20 percent of households had an average annual disposable income of about 78,000 US dollars. That is 6.2 times higher than the bottom 20%, with only about 12 thousand. The government says Taiwan’s AI boom is helping drive higher incomes among top earners.
Lee Chia-hang (DIRECTORATE GENERAL OF BUDGET, ACCOUNTING AND STATISTICS):
The AI boom has driven growth across the semiconductor industry so high-income households have seen a much larger increase.
REPORTER:
The government has raised the minimum wage consistently in recent years to help lower-paid workers. But some professors say the increases have had limited effects above the lowest income group. They say workers earning more than the minimum wage may see little change.
Hsin Ping-lung (ADJUNCT PROFESSOR, NATIONAL CENTRAL UNIVERSITY):
People in the second- or third-lowest income groups, although their wages are not high, are still earning above the minimum wage. So when the minimum wage is raised, their wages may not change, so we don't see the effect that people often talk about that raising the minimum wage would increase wages not only for the lowest-paid workers but also push up the wages of workers further up the income ladder. That effect doesn't seem to be happening.
REPORTER:
The challenge now is helping lower-income households keep pace as Taiwan’s economy grows.
