Financial industry to give highest year-end bonuses: poll

Office workers pass by monitors displaying the Taiwan Stock Exchange in Taipei, Taiwan, Thursday, Aug. 13, 2015. Asian stock markets stabilized Thursday after a two-day sell-off sparked by China's currency devaluation. China's yuan fell again but the decline was smaller than before. (AP Photo/Wally Santana)

TAIPEI (CNA) — The financial industry is expected to give the fattest year-end bonuses to employees and retain the top spot among the major industries in the local business sector, according to the results of a survey released Monday.

Citing the results, online job bank yes123 said the financial industry which covers banking, insurance and accounting, is expected to issue year-end bonuses equivalent of 2.4 months-worth of wages, up from 2.33 months in a similar poll conducted a year earlier.

Yang Tsung-pin (楊宗斌), a spokesman for yes123, told reporters that financial institutions are expected to be the most generous when doling out year-end bonuses, on the back of their solid bottom lines, referring to profits enjoyed by financial holding companies this year.

Statistics show that 15 financial holding firms listed on the local equity market raked in about NT$336.6 billion (US$11.11 billion) in combined net profit during the first 11 months of this year, up 12 percent from a year earlier, in the wake of large cash dividends from their equity investments and growing core businesses.

The information technology industry was ranked in second place in terms of bonuses, as high-tech companies are expected to give year-end bonuses equivalent to 1.7 months-worth of wages, according to the survey.

Yang said year-end bonuses have never been the main focus in terms of compensation in the local information technology industry, which serves as the backbone of Taiwan’s outbound sales, since the industry tends to hand out performance bonuses on a quarterly basis.

The transportation and logistics industry took third spot, with year-end bonuses equivalent of 1.56 months-worth of salary, ahead of the old economy manufacturing industry (1.53 months) and the medical care and biotech industry (1.46 months), the survey found.

It showed that the mass communications and advertising industry was on bottom of the list, expected to give out year-end bonuses equivalent to only 0.59 months-worth of wages, followed by the cultural and education industry (0.7 months).

yes123 said the expected average year-end bonuses in the local business sector stood at 1.31 months-worth of salary, compared with 1.35 months seen in a poll conducted a year earlier.

Yang said the lower year-end bonus payout showed that the local business sector remained alert over the economy at home and abroad because of the trade dispute between the United States and China.

The survey found that 90.4 percent of the polled employers said they will issue year-end bonuses before the upcoming Lunar New Year holiday, which this year will start Jan. 23, the day before New Year’s Eve.

Among those who said they will give bonuses, 68.4 percent said the payout will be based on employee performance, seniority and work content, with the remaining 31.6 percent saying the payouts will be the same for every employee.

The survey was conducted Nov. 21-Dec. 4 and collected 942 valid responses, with a confidence level of 95 percent and a margin of error of plus or minus 3.19 percentage points, yes123 said.