80% of Taiwanese companies planning to give 4.7% raise in 2018

Nearly 80 percent of Taiwanese companies are planning to give their workers an average raise of 4.7 percent in 2018

(Image from pixabay user geralt)

(Image from pixabay user geralt)

TAIPEI (Taiwan News) -- Nearly 80 percent of companies in Taiwan plan on giving their employees a 4.7 percent raise on average to their employees in the coming new year, according to a survey by yes123.

According to the results of a survey published yesterday (Dec. 18) by the online job bank yes123, 52.4 percent of companies estimated that their operating conditions will be better next year than the current year, while 42.7 percent thought conditions would stay the same and only 4.9 percent thought business would get worse.

This overall positive outlook on business next year translates into an increased willingness to raise salaries. The survey found that 70.3 percent plan to raise salaries, with 61 percent basing the increase on their performance, while 18. percent say they will give the pay raise to all employees.

In terms of industries, companies in the tech sector had the highest willingness to raise wages at 91.4 percent, followed by finance, accounting, and statistics at 90.9 percent, and healthcare and biotechnology at 88.9 percent. Transportation, logistics, and warehousing came in next at 84 percent, while manufacturing rounded out the top five industry categories at 80.5 percent.

When asked why they chose to raise salaries for their staff, 75.4 percent selected "motivating staff performance," 33.8 percent checked "reflecting the fundamental rise in wages," 30.8 percent chose "considering price levels and changes," 27.7 percent cited "reflecting the company's overall growth," and 24.6 percent clicked "a surplus has appeared, so priority has been given to employees." A small percentage, 6.2 percent, said that they will raise the salary because they are branches of the military, public educational institutions, or state-owned enterprises.

Yang Tsung-pin (楊宗斌), spokesman for yes123, said that he believes that as the economy continues to warm, the proportion and magnitude of salary increases in 2018 will surpass those of 2017. He added that the pace of recovery of export industries is greater than the domestic industry demands, therefore it is the improved global economic climate that is driving increases in payroll, bonuses and benefits in Taiwan.

The survey was conducted between Dec. 1 - Dec. 12 and gathered 984 valid questionnaires with a level of confidence of 95 percent and a margin of error of 3.12 percentage points.