State-run banks may to grant at least 4.6-months' pay as year-end bonus
The China Post news staffThe China Post news staff--Employees at government-linked banks can expect to enjoy a year-end bonus equivalent to at least 4.6 months of regular pay, according to Finance Minister Chang Sheng-ho.
October 16, 2012, 12:39 am TWN
Chang said that despite a sluggish economy, rising unemployment rate and the suspension of a hike in the basic labor wage, government-run financial holding companies and banks are expected to grant employees thicker year-end bonuses in line with their better profit records.
Chang made the remarks in response to questions by lawmakers at a legislative session held to screen the 2013 annual budget proposal of the Ministry of Finance.
The minister said there should be no problem for state-run financial holding firms and banks to grant their employees a year-end bonus equivalent to at least 4.6 months of regular pay this year.
Mega Financial Holding is likely to dole out 7.7 months of pay as a year-end bonus to employees. Over the past nine months of this year, Mega Financial has been the most profitable government-linked financial company, according to industry sources.
Other government-linked financial holding firms, such as the First, Hua Nan and Changhua are expected to give an average year-end bonus equivalent to 5 months' pay, while the Bank of Taiwan, the Land Bank of Taiwan, and the Taiwan Cooperative Bank are anticipated to release 4.6 months of pay as a year-end bonus along with earnings bonuses.
In related news, year-end bonuses from private financial holding companies and banks are expected to be a little thinner than their government-linked equivalents. Yet they remain larger than those received by employees in traditional industries.
Cosmos Bank, for instance, is expected to distribute a year-end bonus equivalent to at least 3 months of pay, with the bank turning a profit this year.
E. Sun Financial Holding is planning to give an extra 4 months' pay as year-end bonus, while Chinatrust Financial Holding will be bestowing 5 months' pay as a year-end bonus.
By contrast, employees at traditional industries are expected to receive a maximum of 1.5 to 2 months' extra pay as year-end bonus due to relatively lower profits.