Taiwan state-owned banks plan salary increases for next year

Several state-owned banks in Taiwan are planning salary increases for next year, following a 4% pay raise for civil servants and military personnel. During a Legislative Yuan Finance Committee session, leaders from major state-owned financial institutions confirmed their intentions to adjust compensation.

Mega Financial Holding Chairman Tung Jui-pin stated that the company will implement a 4% raise to match civil servants, which, when combined with annual seniority increments of over 2%, will result in a total increase of approximately 6.5%. However, he noted that personnel costs have risen by 20% over the past few years, posing a significant financial burden.

Taiwan Financial Holding has proposed a 5% increase, which is currently awaiting approval from the Ministry of Finance. Similarly, Bank of Taiwan and Land Bank of Taiwan are discussing a planned 5% raise, pending official authorization.

Minister of Finance Chuang Tsui-yun clarified that salary increases for state-owned enterprises are decoupled from civil servant pay scales and are instead tied to performance metrics. She noted that the Ministry has requested Bank of Taiwan to consolidate opinions from Bank of Taiwan, Land Bank of Taiwan, and the Export-Import Bank of Taiwan to determine if existing calculation rules need revision.