Employers' highlighting of the labor pension fund in their recruitment ads could become a decisive factor in getting quality talent in Taiwan, after the mandatory new system took effect earlier this month, the 104 Job Bank (104
While all firms are now required by law to set aside 6 percent of an employee's salary for a pension fund, they are presenting the pension set-aside in different ways. While some firms are simply cutting salaries to maintain total labor costs at current levels, others are now advertising the pension as one of a variety of perks on top of normal salaries.
Foreign companies appeared to be more aggressive than the local ones in luring talent with the second approach, the online job bank said said.
Starting this month, employers are required to direct 6 percent of employees' salaries per month -- up from 2 percent -- to individual, portable pension fund accounts.
The new system will allow individuals to build up their retirement fund even if they change jobs, and draw a monthly pension after they retire.
By highlighting the offer of 6 percent retirement funds on top of normal salaries in their job ads, companies are more likely to recruit quality employees, said Monica Chiu (邱文仁), marketing director of the 104 Job Bank, in a statement released yesterday.
The job bank has seen nearly 800 member enterprises note in their ads the offering of the retirement fund as part of their benefits. Those companies include foreign firms such as Gucci Taiwan Ltd and Ericsson Taiwan, as well as local firms such as Acer Inc and Polaris Securities (
As many as 11.7 percent of these enterprises are in the trade business, followed by electronics manufacturing's 8.9 percent; machinery's 6.2 percent; banking, securities and insurance's 5.8 percent and computer peripherals' 5.5 percent, according to the job agency's data.
Chiu said that 14 percent of the 800 companies noting the pension fund in ads are overseas firms, while such firms make up only 3 percent of the job bank's total membership.
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