About 67% of Taiwan's employers to give year-end bonuses: survey

Taipei-About 67 percent of Taiwan’s employers polled in a recent survey said they will give their employees year-end bonuses this year, a higher percentage than last year, yes123 online job bank said Wednesday.

According to the survey results, 66.8 percent of the polled employers said they have already made plans to issue year-end bonuses, higher than the 64.7 percent seen in a similar survey conducted by the job bank last year.

The job bank attributed the increase to an improvement in the local economy, which is forecast by the government to grow 2.11 percent in 2017, and 2.27 percent in 2018, after a 1.48 percent increase in 2016.

In Taiwan, many employers give year-end bonuses for their employees ahead of the Lunar New Year holiday. The holiday will fall in February 2018.

According to the survey, only 4 percent of the polled employers said they will not issue year-end bonuses, down from the 7.5 percent seen in last year’s survey. That also reflected the improved economy, the job bank said.

However, 29.2 percent of the employer respondents said they have not made up their mind on whether to give year-end bonuses this year, the survey showed.

Among the firms which plan to give year-end bonuses, 67.8 percent of them said the amount they will give this year will stay about the same as that of last year, while 23 percent said they will give more this year, the survey said.

As for employees’ expectations, on average they expect to receive year-end bonuses equivalent to 1.1 months of their salary this year, the job bank said.

That’s slightly higher than the 1.03 month of wages they had expected to get a year earlier, the survey showed.

The latest expected average year-end bonuses are the second highest level in nine years, only trailing the 1.11 months of salary anticipated in 2014, the survey indicated.

According to the survey, employees in the financial/insurance sector have the highest average expected bonuses, which is equivalent to 2.33 months of their salary, up from 2.1 months last year.

Employees in the transportation/logistics sector had the next highest expected bonus, at 2.1 months of salary, while those in the information technology sector expected 1.86 months of salary.

Moreover, employees in the traditional manufacturing sector anticipated year-end bonuses equivalent of 1.44 months of wages on average, while employees in the retail/wholesale sector expected 1.15 months of salary as their year-end bonus, the survey showed.

Employees in the media and public relations sector meanwhile anticipated the lowest year-end bonuses, equivalent to 0.45 month of salary, down from the 0.5 month of bonus they expected last year, the poll indicated.

The job bank said the survey, conducted during Oct. 19-Nov. 1; collected 958 questionnaires from employers with a confidence level of 95 percent and a margin of error of plus or minus 3.17 percentage points.

The poll also collected 1,375 questionnaires from employees with a confidence level of 95 percent and a margin of error of plus or minus 2.64 percentage points.

Source: Overseas Community Affairs Council