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Wage hike amendments to be approved Friday

Wage hike amendments to be approved Friday

Taipei, April 19 (CNA) Lawmakers across party lines are expecting amendments to two out of four acts aimed at attracting the private sector to reduce working hours and raise wages for employees to see swift approval next Friday. The proposed amendments to the Company Act (???), the Factory Act (???), the Labor Standards Act (?????) and the Small and Medium Enterprises Development Act (????????) would bring wage raises to employees by requiring companies to establish profit sharing schemes. The proposed amendments to two of the four act, including those to the Company Act calling for companies to allocate a lump sum or percentage of earnings towards profit sharing schemes, and to the the Factory Act requiring profitable firms to distribute earnings to employees, are expected to see the least dissent, and be approved next Friday, said ruling Kuomintang (KMT) lawmaker Lai Shyh-bao (???). Meanwhile, businesses said that the proposed amendments to the Labor Standards Act, which will levy fines of under NT$5 million on companies which fail to establish a profit sharing scheme, will create standoffs and rifts between employers and employees. Democratic Progressive Party (DPP) lawmaker Huang Wei-che (???), however, said that although the opposition party supports the move, it has lingering concerns on the proposed amendments to the Small and Medium Enterprises Development Act. Lawmakers said that the amendments to the Small and Medium Enterprises Development Act are likely to see the most difficulty in the approval process. The proposal stipulates that following six consecutive months in which the unemployment rate has remained under 3.78 percent, companies will be able to claim 130 percent of the amount of raises given to their employees as deductible expenses on their taxes. The tax deductible amount, however, excludes raises that come from minimum wage adjustments. (By Tseng Ying-yu and Ted Chen)


Updated : 2021-09-27 15:24 GMT+08:00