For office workers, the highlight of the year is receiving their year-end bonus. According to a new job bank survey, companies on average are handing out year-end bonuses worth 1.33 months of wages this year, the highest level in nine years.
Office workers always look forward to the end of the year, when they receive their annual bonuses. According to a job bank survey, companies are on average planning to hand out year-end bonuses equivalent to 1.33 months of salary, the highest level in nine years. For the 12th straight year, the financial sector will be handing out the highest bonuses, worth 2.07 months of wages. Next is the semiconductor industry at 1.78 months, followed by the construction industry at 1.68 months. The hospitality and catering industry is handing out a bonus of only 0.85 months of salary, but this is an increase of 0.35 months compared to 2021, showing it is emerging from the pandemic haze.
Stanley Hua, General Manager, 104 Human Resource Institute: “They (the hospitality and catering industry) were impacted the most during the past few years, and then there were the borders opening and other bullish factors. My personal opinion is that there is a pretty good chance that salaries, year-end bonuses and benefits will continue rising next year.”
The average annual salary this year is NT$677,000 due to a combination of shortage and inflation. This is a seven-year high and an increase of 3.1 percent compared to 2021. The semiconductor industry had the highest average annual salary for the seventh straight year at NT$969,000. Meanwhile, 47.3 percent of companies are willing to offer higher salaries to attract talent, resulting in a situation where salaries given to newcomers are higher than those of existing employees.
Stanley Hua, General Manager, 104 Human Resource Institute: “There's a gap of about 10 percent in the middle. This situation of colleagues with different remuneration will become a problem. In other words, the job shortage issue won't substantially change or be resolved because new employees will come in and existing employees may leave due to this.”
A job bank says companies are under pressure to adjust salaries due to the soaring inflation. They will do so through bonuses instead of base pay adjustments, so the base pay burden will be smaller. This is also the main reason more companies are handing out year-end bonuses and for the new high in the number of months.