Wed, Dec 05, 2012 - Page 13 News List

Bonuses drop as global economy remains sluggish

REWARDING FIGURES:Employers in the financial sector plan to give annual bonuses of 1.3 months’ salary, a poll by an online manpower agency showed

By Amy Su  /  Staff reporter

Local average annual bonuses fell to their lowest level in three years, as global economic uncertainties increased volatility of bonuses, a survey by 104 Job Bank (104人力銀行) showed yesterday.

Most Taiwanese employees will receive their annual bonuses ahead of the Lunar New Year, which falls in February, based on their performance this year.

The latest survey conducted by the online manpower agency, which polled 1,749 local employers between Oct. 20 and Nov. 25, found that companies this year are distributing annual bonuses of an average of 1.11 months’ salary.

This is lower than the 1.25 months’ average employees received in January, the online job bank said in a report.

A total of 91.6 percent of employers polled will distribute annual bonuses, while the remaining 8.4 percent of respondents said they have no plans to distribute bonuses, up 1 percentage point from a year earlier, the report’s data showed.

“The gloomy global economic sentiment this year made the annual distributed bonus by local contract electronic companies, and firms in the general manufacturing sector show more volatility,” 104 Job Bank project manager Pola Chang (張雅惠) said in the report.

Employers in the financial sector — including banks, insurers and investment trust companies — topped the list by planning to give annual bonuses of 1.3 months’ salary, followed by law, accounting, consulting and communication firms, as well as companies focusing on research and development, the report said.

Employers in the cultural and educational sectors only plan to distribute an average of 0.74 months’ salary as annual bonuses next year, the lowest level among all sectors, according to the report.

Formosa Plastics Group (FPG, 台塑集團) vice president Lin Sang-chi (林善志) yesterday said that it is unlikely the company will give out year-end bonuses for next year equal to the salaries of 2.9 months as recorded this year, again reflecting the contracting trend in bonuses next year.

Based on the latest data unveiled by the Directorate-General of Budget, Accounting and Statistics (DGBAS), national monthly salaries averaged NT$37,334 (US$1,280) in the first nine months of this year, up 1.54 percent from a year ago.

However, when bonuses and other forms of compensation are included, the average monthly remuneration package showed a 0.16 percent drop from a year earlier to stand at NT$46,887 in the first nine months.

Real wages — adjusted for inflation, which rose 1.97 percent in the first nine months of the year — declined 0.41 percent year-on-year during the period, the DGBAS said, adding that real wages including bonuses declined 2.09 percent from a year ago.

Additional reporting by Camaron Kao

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