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Employee Retirement Plan

To take care of the lives of retired employees, the company has established the Labor Retirement Plan in accordance with the law, and set up a Labor Retirement Reserve Supervision Committee. According to the Labor Standards Act, 2% of the total salary per month are allocated to  a special account in the Bank of Taiwan to protect the rights and interests of labor. Starting from July 1, 2005, the government's new Labor Retirement Pension Regulations are also adopted, allocating 6% of each employees' monthly salary to individual retirement account at the Labor Insurance Bureau on a monthly basis. For those who voluntarily contribute to the retirement plan, an additional voluntary contribution rate is deducted from their monthly salary and deposited into their individual retirement accounts managed by the Labor Insurance Bureau.

 

The company follows the provisions of the Labor Standards Act as follows:

 

Voluntary Retirement:

Employees may voluntarily retire under the following circumstances:

(1) Employees who have worked for more than fifteen years and are at least fifty-five years old.

(2) Employees who have worked for more than twenty-five years.

(3) Employees who have worked for more than ten years and are at least sixty years old.

 

Mandatory Retirement:

The company shall not force employees to retire unless under the following circumstances:

(1) Employees who are at least sixty-five years old.

(2) Employees who are mentally incapacitated or physically disabled and unable to perform their duties.

For employees in positions with special characteristics such as danger or requiring strong physical capabilities, the company may apply to the central competent authority for approval to adjust the age specified in the first paragraph.

 

Retirement Benefits Standards:

(1) For employees with work seniority before and after the implementation of the Labor Standards Act and those who choose to continue applying the retirement benefit regulations of the Labor Standards Act or retain the work seniority before the implementation of the Labor Retirement Pension Regulations, their retirement benefits shall be calculated according to Article 84-2 and Article 55 of the Labor Standards Act.

(2) For employees with work seniority as mentioned above and who are subject to mandatory retirement under Article 54, Paragraph 1, Item 2, if their mental incapacity or physical disability is due to the performance of their duties, an additional 20% shall be added according to Article 55, Paragraph 1, Item 2 of the Labor Standards Act.

(3) For employees covered by the retirement benefit regulations of the Labor Retirement Pension Regulations, the company shall monthly contribute 6% of each employees' monthly salary to the individual retirement accounts managed by the Labor Insurance Bureau.

 

Payment of Retirement Benefits:

The company shall pay the retirement benefits to employees within thirty days from the date of their retirement.

 

 

Retirement System and Implementation in 2023:

Retirement Pension System

Old System

New System

Applicable Law

Labor Standards Act

Labor Retirement Pension Regulations

Allocation Method

Allocate 2% of employees' monthly salary expenses and deposit into a Bank of Taiwan special account

Allocate 6% of each employees' monthly salary into individual accounts manage by the Labor Insurance Bureau

Amount Allocated

Accumulated amount of Labor Retirement Reserve Fund: NT$132,240 thousands

Allocated in 2023: NT$37,653 thousands