萬國法律事務所

Provisions related to the increase of employees’ salaries set forth in the Taiwan Company Act, Factory Act, Act for Development of Small and Medium Enterprises, and the Labor Standards Act have been proposed for amendment.

In the Company Act, it is proposed that Article 235 be amended to require companies to increase employees’ salaries by a fixed percentage based on the companies’ annual profits, and to set forth this increase in the articles of incorporation. In the Factory Act, it is proposed that factories shall share profits with laborers.

With respect to the Act for Development of Small and Medium Enterprises, benefits for decreasing companies’ income taxes are proposed if companies increase employees’ salaries.

Under the Labor Standards Act, an amendment is proposed to punish a company that does not distribute bonuses to its employees if the company profits. Proposed penalties are ranging amounts from NTD 500,000 to 5,000,000.

If the above provisions are passed and implemented, the measures will affect approximately 3,000,000 laborers.