TAIPEI (Taiwan News) — Taiwan companies are awarding an average year-end bonus of 1.39 months salary this year, with payouts varying across industries, a job bank survey revealed.

Financial companies lead the pack, averaging 1.97 months salary, with top performers potentially receiving up to 12 months. The information technology industry ranks second, with an average of 1.6 months bonus and 76% of companies planning future salary adjustments, per PTS.

Meanwhile, transportation and logistics companies are offering an average of 1.5 months bonus. Maritime shipping companies, fueled by a recovering shipping market, offer bonuses of up to 20 months of salary.

The restaurant and hospitality sectors are distributing bonuses of less than one month's salary despite a rebound in domestic demand after the pandemic. Economic analysts attribute this to rising costs, natural disasters such as typhoons and earthquakes, and squeezed profit margins.

While some workers question the legality of not receiving bonuses, job banks clarify that year-end payouts are discretionary and based on labor agreements. A survey by 1111 Job Bank found that 71.3% of companies base bonuses on individual performance, 35.3% on seniority, and 0.6% on subjective “impression scores.”  

Although Article 29 of the Labor Standards Act encourages companies to distribute bonuses from net profits, it does not mandate this practice or impose penalties. This leaves the decision to company policies and labor-management agreements, per Yahoo News.

Wu Ta-ren (吳大任), head of the National Central University’s Center for Taiwan Economic Development, noted that increased personnel costs due to the minimum wage hike could crowd out bonuses or profit-sharing for higher-paid employees.