Only 31 percent of Taiwanese companies plan wage increases this year, down 7 percentage points from last year, reflecting a conservative business outlook, a survey by online recruitment agency 104 Job Bank (104人力銀行) said.
Average raises are to be about 3.54 percent for this year, slowing from 4.01 percent last year, when 38 percent of firms increased wages, the annual report said.
The findings bucked a government projection in November that said the economy would fare better this year with GDP growth of 2.34 percent, more than double last year’s 1.06 percent.
Twenty-eight percent indicated no intention to raise pay, while 40 percent said they would wait and see, the survey showed. Two percent indicated plans for pay cuts if necessary.
“The survey suggests weak sentiment as global headwinds dampen exports,” the job bank said in the report.
Financial services providers showed the greatest willingness to raise wages, with 6.94 percent of firms in the sector responding positively in the survey, even though they bore the brunt of the global slowdown, it said.
Telecommunications companies ranked second in willingness to raise wages at 5.93 percent, followed by petrochemical companies at 4.38 percent and restaurant operators at 4.1 percent, the survey showed.
Despite poor economic data, food and beverage spending on wages is expected to be resilient thanks to a stable job market, government statistics showed.
Profitability is the No. 1 concern when companies consider raises, the survey said, adding that the desire to retain talent drives companies to increase spending on wages, the survey said.
Raises are mostly given based on performance at 65.8 percent, while positions drive 24 percent of them, the survey said.
Most firms, 63 percent, give raises once per year, 29 percent adjust compensation in a non-regular fashion, while only 8 percent raise pay twice per year, the survey said.
Most raises take place in July, followed by January, then April, it said.
In related news, Lunar New Year bonuses this year are expected to be the equivalent of 1.19 months of wages, four days fewer than last year, 104 Job Bank said in a separate survey.
Financial firms topped the survey with plans to distribute bonuses equivalent to 1.55 months of wages, followed by optical technology firms at 1.33 months, it said.
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