Thought you'd work in China and make some big bucks? Think again. As more and more Taiwan-ese are overtaken by mainland fever, supply is sending their salaries earthward.
Wage discrepancies between the two sides of the Taiwan Strait are gradually shrinking as salaries in China rise and more Taiwanese are willing to work in China for less money than before, a Chinese-language newspaper reported yesterday.
Less than a decade ago, Taiwanese companies had to double an employee's salary plus other bonuses to get him or her to work in the company's branch offices or factories in China. The figure is now down to 1.5 times or less, and bonuses for China-based Taiwanese staff are quickly disappearing, the paper said.
But despite the shrinking benefits, many Taiwanese are still willing to be sent to the other side of the Strait as a result of the business migration to China and Taiwan's economic slowdown, the newspaper said.
Indeed, according to statistics compiled by the government's Investment Commission (
In addition, to cope with the persistent sagging economy facing the nation, several local semiconductor makers are adopting drastic measures to reduce overhead costs either by decreasing manpower hours or slashing the salaries of high level executives.
With wages in China rising by 15 percent to 20 percent annually, the wage difference between Taiwanese and Chinese workforces is expected to dramatically narrow within the next five years, the paper claimed, without citing any sources.
With ever-increasing numbers of Taiwanese moving to China to work, demand for skilled workers by China-based companies is falling. In the personal-computer sector for example, the paper said staff members sent to China are getting less than 1.5 times their salaries in Taiwan, compared to previous offers that included a two-fold increase in salary plus lodging bonuses and education subsidies for their children.
When Compal Electronics Corp (
In May, Clevo Computer Co (藍天) also cut the salaries of its China-based Taiwanese executives from 1.7 times to 1.5 times their Taiwan rates. The salary ratios at other Taiwanese companies vary from 1.3 times to 1.6 times Taiwan pay. The difference is expected to soon fall to 1.2 times.
Other Taiwan-based computer companies, such as Acer Communications & Multimedia Inc (
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