Sep 30, 2019MarketComments Off on Average employee compensation up 3.6% in 2018
Taipei-The annual compensation of employees in Taiwan rose more than 3 percent in 2018 from a year earlier as employers increased the bonuses they paid out, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Monday.
Total employee compensation, consisting of regular salaries, non-regular earnings, and benefits such as labor and health insurance premiums, severance pay, and pension contributions paid by employers, totaled NT$731,000 in 2018, up NT$25,000 or 3.6 percent from 2017.
Based on the DGBAS's definition, non-regular earnings include year-end bonuses, other bonuses for other festivals, performance bonuses and allowances.
Regular salaries accounted for 67.2 percent of the average compensation received by employees in Taiwan in 2018, down from 67.9 percent in 2017.
The share of non-regular earnings rose 0.9 percentage points year-on-year to 18.8 percent of the total, the highest level in history.
Pan Ning-hsin (???), deputy director of the DGBAS census department, said the higher compensation seen last year reflected in part the good year employers had in 2017 when Taiwan's economy grew 3.08 percent in real terms, up from 1.51 percent seen a year earlier, leading them to pay higher year-end bonuses and performance bonuses in 2018.
While regular salary averaged only a 2.6 percent rise in 2018, average non-regular earnings rose 8.5 percent, or by NT$10,752 per person, DGBAS figures showed.
Average benefits rose 2.0 percent in 2018, but their share of total average compensation fell to 14 percent in 2018, down from 14.2 percent in 2017, the DGBAS figures showed.
Pan said that because Taiwan is doing more to protect workers, benefits, which are part of employers' operating costs, are likely to rise in the future.