Retirement System and Implementation
- The company has established an employee retirement system in accordance with the Labor Standards Act, covering all regular employees. The regulations regarding employee pensions are explained as follows:
- 1. Initially, the company formulated an employee retirement system based on the Labor Standards Act. The expenditure for employee pensions is calculated based on the years of service (base) and the average salary for the six months before the approved retirement date. The company is required to allocate 4% of the total employee salary each month to the employee retirement reserve fund, which is deposited in a special account at the Bank of Taiwan under the name of the Supervisory Committee of Business Entities’ Labor Retirement Reserve. In the fiscal year 2022, a total of NTD10,153 thousand was allocated (including a supplementary differential allocation of NTD8,336 thousand.)
- 2. The company follows the retirement pension system under the Labor Pension Act. Starting from July 1, 2005, 6% of the employee’s monthly salary is allocated to the individual retirement account at the Bureau of Labor Insurance. The retirement cost recognized by the company in the fiscal year 2022 was NTD3,606 thousand.
- 3. In addition, the company established the “Retirement Fund Management Committee” in November 2005, responsible for reviewing, supervising, and auditing the allocation, custody, utilization, and distribution of pensions for managerial and higher-level personnel. In the fiscal year 2022, no funds were allocated to the “Retirement Fund Management Committee” retirement account.