Taipei, While nearly 60 percent of enterprises in Taiwan's private sector, most notably in the financial industry, have offered pay raises to their employees this year, fewer than 50 percent will raise salaries next year, according to a survey released Wednesday by 1111 online job bank.
The results of the poll measuring enterprises' willingness to raise wages in 2019 show that 46 percent of enterprises are expected to give pay raises next year, including 21 percent that claim they will give employees raises across the board by an average 3.75 percent, while 54 percent have no plans to offer pay raises.
The job bank said 58 percent of enterprises polled in the survey said they have given employees pay raises this year, with 25 percent giving rises across the board, while 42 percent said they have no plans for salary hikes this year.
The main reasons cited by enterprises for giving employees pay raises include individual job performance (52.46 percent), business results (43.77 percent), departmental achievements (15.8 percent) and degree of compatibility (8.5 percent), according to the poll.
Meanwhile, asked about the main reasons for their decision to not give pay raises, 31.14 percent indicated unclear prospects for Taiwan's economy, while 21.28 percent pointed to the lack of a regular pay hike system in their companies and 19.92 percent said they would only hike wages for employees with excellent performance.
Most companies that raised wages for employees this year are in the financial sector, while only a few in the trade and logistics sectors gave pay raises, according to Daniel Lee (???), head of 1111 job bank's career development and public relations division.
Although the average monthly wage in the financial services industry last year was as high as NT$86,294 (US$2,799), many enterprises still opted for pay raises to keep employees amid fierce competition in the sector, Lee said, citing official data.
The salary plans in the trade and logistics sectors are mainly based on sales commissions, making it difficult to raise basic pay for employees, Lee explained.
A trade spat between the United States and China and unstable financial situations in emerging markets are key factors affecting Taiwan's economy in the fourth quarter, Lee noted, adding that although the economic prospects for next year are still unclear, businesses are conservative about the future outlook and have become more unwilling to hike pay.
The survey was conducted Oct.1-16 using just 690 valid samples.
Source: Focus Taiwan News Channel