The paper focuses on the relation between leverage and either managerial wage or average employee wage, using the sample consisting of all the listed firms but excluding financial firm in TEJ database from 2008 to 2015. The results show there is a negative relation between firm leverage and average employee wage in Taiwan, but no significant relation between leverage and managerial compensation. The negative effect of leverage on average employee wage will be weaker in firms with higher R&D ratio and in nontechnology firms, but will be stronger during the periods of financial crisis. The results of this paper imply that in Taiwan a high leverage ratio helps employers to gain bargaining advantage over employees when negotiating wage.