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Fubon Financial to raise employee pay by 3%

2012/04/23 20:54:00

Taipei, April 23 (CNA) Employees of Fubon Financial Holding Co., Taiwan's second biggest financial holding company by assets, will receive pay raises of at least 3 percent this year, the company's chairman said Monday.

The range size of the raises will depend on individual performance, but they will surpass the 2 percent rise in inflation the government is predicting for the 2012, said Daniel Tsai on the sidelines of a cultural park construction ceremony in Taipei.

Tsai's comments came amid mounting inflation concerns in Taiwan, triggered by a 16.9-35 percent rise in electricity rates that will take effect May 15 and an average 10 percent hike in fuel prices imposed April 2.

The Directorate General of Budget, Accounting and Statistics recently said that the fuel and electricity price hikes could possibly push inflation higher than 2 percent for the year.

Salaries in Taiwan have been stagnant for over a decade, with the average real wage in Taiwan in January lower than it was 13 years ago, according to government figures, and any sharp growth in inflation could set wage earners back further in real terms.

Sensitive to the issue, Tsai said Fubon employees who performed well could even get raises of 50 to 100 percent.

Other major companies, such as Asustek Computer Inc., the world's fifth largest PC maker, recently said they were also considering whether to raise salaries.

Hon Hai Precision Industry Co., the largest supplier of Apple's iPads and iPhones and China's largest exporter, has said it is reviewing the pay scale for its employees in Taiwan.

A survey released by local online recruitment agency 1111 Job Bank on Monday showed, however, that over 71 percent of polled enterprises do not plan to offer pay raises in the first half of the year.

(By James Lee)