Reward and Incentive
Formosa Laboratories attaches great importance to employee's Incentives and Rewards systems. In 2016, we established a salary structure analysis and design through a professional consulting company to ensure the market competitiveness of employee salaries. In response to the Company's continuous development and sustainable operation, we plan to reconstruct the position-based job level structure from a career blueprint perspective in 2022 to 2023. This provides employees with diverse development, promotion, and rotation opportunities. At the same time, we will redesign the fixed salary system that is linked to the market by providing a "diverse salary table" where salary standards are based on job responsibilities, expertise, and individual performance capabilities, and adjusted based on the latest industry market levels to enhance Formosa Laboratories' salary market competitiveness. The overall salary system values equal pay for equal work and does not create gender disparities.
The Company also values incentive policies and provides additional variable bonuses such as performance bonuses and project achievement bonuses to boost employee motivation and morale. Formosa Laboratories also plans long-term financial planning for its employees. The Employee Stock Ownership Committee was established in 2014, offering membership incentives to employees and allocating 3% of monthly salaries to increase employee benefits. This allows for the sharing of the Company's stock price appreciation benefits and ensures sufficient retirement funds through small savings, enabling a fulfilling life.
Formosa Laboratories is committed to continuously improving various human resources policies, providing career development, Incentives and Rewards, benefit systems, etc., to make employees and the Company strategic partners for mutual growth. The percentage of the highest annual total compensation for an individual in 2022 to the median annual total compensation for all other employees is 12:1. In addition, compared to the previous year, the percentage increase in annual total compensation for both is 1.15:1.
Salary levels of Entry Level Wage at Formosa Laboratories in the Past 3 Years
| Year | Average Entry Level Wage / Local Minimum Wage | |
|---|---|---|
| Male | Female | |
| 2020 | 1.4 | 1.6 |
| 2021 | 1.4 | 1.6 |
| 2022 | 1.4 | 1.6 |
Note：
- The Company refers to the annual announcement of the Ministry of Labor on the basic wage to determine the salaries of employees and other workers, ensuring their pay is not lower than the basic wage.
- Entry level employees: including direct labor with job titles such as technicians, skilled workers, and dispatch operators, etc. (direct labor within the Company's job levels 1 to 3)
- Standard salary: including basic salary, attendance bonus, job allowance, certification allowance, and other regular salaries.
- The local minimum wage in Taiwan for the years 2020 to 2022 are respectively 23,800 NT$, 24,000 NT$, and 25,250 NT$.