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
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to