Ninety-six percent of companies in Taiwan plan to issue Lunar New Year or year-end bonuses, with the average being 1.39 months of wages, the highest average since 2012 amid improving corporate profitability, 1111 Job Bank (1111人力銀行) said yesterday, citing a survey.
The number of firms offering bonuses is up 10 percent from a year earlier, when the average was 1.32 months of wages, 1111 Job Bank said.
Financial institutes topped the survey, with the average bonus in the sector amounting to 1.97 months of wages, it said, adding that local life insurers, lenders, asset management firms and securities brokerages benefited from rising demand for wealth management, and stock rallies at home and abroad.
Photo: CNA
The average year-end bonuses at the most profitable financial institute, Fubon Financial Holding Co (富邦金控), are to be 7.5 months of wages, up from six months last year, Fubon Financial Holding chairman Richard Tsai (蔡明興) told reporters on the sidelines of a year-end banquet.
State-run Hua Nan Financial Holding Co (華南金控) said that its employees were expected to benefit from the bank-focused conglomerate’s profit growth by receiving bonuses of 6.5 to seven months of wages.
The nation’s 14 listed financial holding companies reported combined profits of NT$571.4 billion (US$17.36 billion) in the first 11 months of last year, giving them room to be generous, 1111 Job Bank said, adding out that year-end bonuses have become part of total compensation packages to attract and retain talent.
Taiwanese suppliers of IT products were second with average bonuses in the sector of 1.6 months of wages, the survey showed.
The IT industry was a major beneficiary of the artificial intelligence boom, the job bank said, adding that 76 percent of companies in the sector planned to raise wages this year.
Barry Lam (林百里), founder and chairman of AI server provider Quanta Computer Inc (廣達), told employees on Thursday that the company would undergo rapid business growth this year on top of strong earnings last year.
The transportation and logistics industry was third, with bonuses of 1.5 months of wages, the survey showed.
Employees at Evergreen Marine Corp (長榮海運), Taiwan’s largest cargo container shipping company, reportedly received 20 months of wages as year-end bonuses this week, as the shipping industry benefited from disruptions to container shipping traffic in the Red Sea last year.
Companies that do not plan to issue bonuses pinned the blame mainly on disappointing financial results, the job bank said.
The survey showed that 71.3 percent of firms would take employees’ performance and seniority into consideration when arriving at bonus amounts, while a few companies limit bonuses to employees who outperform their peers, the job bank said.
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