Hon Hai helps employees cope with rising living costs


TAIPEI, Taiwan — Hon Hai Precision Industry Co., the world’s largest electronics maker, said Saturday that it has taken steps to help its workers cope with increasing consumer prices in Taiwan.

The company said it advanced its regular pay hike by one month to April this year as part of its efforts to cushion the impact of rising living costs. Hon Hai usually implements its wage increase in May.

In the latest pay hike, Hon Hai engineers who earn less than NT$1.2 million per year received a salary increase of NT$3,000 per month on average, the company said.

Hon Hai is among the first 10 companies listed on the Top Salary 100 Index, which was recently launched by the Taiwan Stock Exchange.

In its 2013 financial report, Hon Hai said its wage bill and spending for stock bonuses and performance for that year was NT$12.06billion, while its expenditure for health care and retirement payments was an additional NT$1.98 billion.

Meanwhile, the company said it also has a health care program in place that provides comprehensive coverage for its employees and members of their family.

As part of the program, doctors and other medical personnel are on standby to handle any health problems that may arise at Hon Hai factories, the company said.

Hon Hai said it has also set up a cloud-based health care system in Taiwan, called Health To You, which allows its local employees to monitor their own health.

Hon Hai assembles iPhones and iPads for Apple Inc. and has been dubbed one of the “Apple concept stocks” in Taiwan.

In August, Taiwan’s consumer price index (CPI) rose 2.07 percent from a year earlier to an 18-month high due to a 5.60 percent increase in food prices. The core CPI, which excludes vegetables, fruits and energy, rose 1.15 percent, also to an 18-month high in August.

The latest CPI data shows that a household that normally spends NT$60,000 (US$2,000) per month has had to add NT$1,242, with NT$873 of the extra amount going toward food, according to the Directorate General of Budget, Accounting and Statistics.