Employee retirement system
Take care of employees' well-being so they can work with peace of mind and live without worries.
The Company and its domestic subsidiaries adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company and its domestic subsidiaries will make monthly contributions of no less than 6% of the employees' monthly wages to the employees' individual pension accounts. The Company and its domestic subsidiaries have made monthly contributions of 6% of each individual employee's salaries or wages to employees' pension accounts.
Subsidiaries located in the People's Republic of China will contribute social welfare benefits based on a certain percentage of employees' salaries or wages to the employees' individual pension accounts.
Pension benefits for employees of overseas subsidiaries and branches are provided in accordance with the local regulations.
Expenses under the defined contribution plan for the years ended December 31, 2024 and 2023 were $ 8,267 thousand and $8,529 thousand, respectively.
The Company and its domestic subsidiaries according to “Labor Standards Act” to establish employee retirement rule to define benefit plans and the payment of employee pensions is based on the service years and the one-month average wage at the time of retirement. Within 15 years of service (including) will be given two units for one year, and the service years is over 15 years that will be given one unit for each year, but the accumulated unit is limited to 45 units. The Company and its domestic subsidiaries are required to provide 2% of the total wage into pension foundation on a monthly basis in accordance with the Labor Standards Law and save it in the account of the Bank of Taiwan in the name of the Labor Retirement Reserve Supervision Committee. Besides that, the Company and its domestic subsidiaries estimate the balance of the above-mentioned labor retirement reserve account before the end of each year. If the balance is not enough to pay the amount of the pension in the next year that meets the retirement conditions, the difference will be paid before the end of March next year.
The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandate, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute $196 thousand to its defined benefit plan during the 12 months beginning after December 31, 2024.
The average duration of the defined benefits plan obligation as of December 31, 2024 and 2023 are 18 years and 17 years, respectively.
