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COST OF LIVING/Over 88% of employers to give year-end bonuses: Survey

12/23/2023 10:37 PM
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CNA file photo
CNA file photo

Taipei, Dec. 23 (CNA) More than 88 percent of employers in Taiwan are planning to give year-end bonuses, according to online job bank yes123.

Citing a survey conducted between Dec. 1-14, the job bank said 88.7 percent of the 1,028 respondents said they will issue year-end bonuses, compared with 79.8 percent in a similar poll conducted last year.

Affected by a weaker export performance, Taiwan's economy has been estimated by the Directorate General of Budget, Accounting and Statistics (DGBAS) since November to grow 1.42 percent, a downgrade of 0.19 percentage points from the previous forecast made in August.

However, the DGBAS has forecast the local economy will stage a rebound in 2024, rising 3.35 percent, an upgrade of 0.03 percentage points from the previous estimate largely due to a recovery in exports and investments.

The average year-end bonus to be given to those who receive them is equal to 1.32 times an employee's salary, the second highest in six years, only trailing 1.35 months in a poll conducted in 2018.

Bingo Yang (楊宗斌), a spokesman for yes123, said the expected increase in the average year-end bonuses showed many enterprises have climbed out of the shadow cast by the COVID-19 pandemic and appeared more willing to give more bonuses to retain employees.

In Taiwan, year-end bonuses are largely issued ahead of the Lunar New Year holiday. The seven-day New Year holiday for the upcoming Year of the Dragon will start on Feb. 8, 2024.

Yang said the latest survey showed the domestic-oriented service sector seemed to be more generous in giving out bonuses at a time of increased local spending.

The export-oriented manufacturing sector, meanwhile, showed caution in doling out the money as their operations were hurt by a weaker global economy, Yang added.

According to the survey, the financial/insurance/accounting industry in the service sector remained the top industry among the major industries as it is planning to give an average equivalent to 2.75 months of wage as year-end bonuses, up from 2.56 months a year earlier.

It is the 11th consecutive year that financial firms have given out the highest year-end bonuses in Taiwan, the job bank said.

The transportation and warehousing/logistics industry, also in the service sector, came in second, with planned bonuses equivalent to 2.11 months of salary, up from 1.75 months a year earlier, the survey found.

The information technology industry in the manufacturing sector took the third spot as it is planning to issue year-end bonuses equivalent to 1.8 months of wage on average, down from 1.89 months a year earlier, followed by the medical care and biotech industry (1.56 months of wage vs 1.67 months last year) and old economy industries (1.48 months vs 1.6 months), the job bank said.

The wholesale and retail industry in the service sector is planning to give year-end bonuses equivalent to 1.4 months of salary on average, up from one month a year earlier, while an average of year-end bonuses equivalent to 1.33 months of wages is planned by the lodging and food/beverage industry, also in the service sector, up from 0.8 months a year earlier, the job bank added.

According to the survey, the mass media and public relations industry sat at the bottom of the rankings as it is planning to give bonuses equivalent to only 0.5 months of wages.

The survey had a confidence level of 95 percent and a margin of error of plus or minus 3.06 percentage points, according to the job bank.

(By Liu Chien-ling and Frances Huang)

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