Employee retirement system and its implementation

Employee retirement system

In order to take care of employees' retirement life, implement the provisions of the Labor Standards Act concerning retirement and pensions, promote personnel turnover and labor relations, and improve corporate finances, the Employee Retirement Operation Management Measures are hereby formulated.

1. Conditions for self-retirement
   Employees may request retirement under any of the following circumstances:
   1. Those who have worked for more than 15 years and are 55 years of age or older.
   2. Those who have worked for more than 25 years.
   3. Those who have worked for more than ten years and are over sixty years old.
   The foregoing paragraph pertains to the employee's rights. If an employee applies for retirement under the foregoing paragraph, the Company shall approve it after verifying that the employee meets the requirements. However, the Company may, based on business management needs, agree with the employee to request retirement or postpone retirement. With the employee's consent, the Company may state in the retirement application form that "both parties agree to request retirement" or "both parties agree to postpone retirement".
2. Mandatory retirement conditions
   The company may not force an employee to retire unless the employee falls under any of the following circumstances:
   1. Those who are 65 years of age or older.
   2. Those who are mentally or physically disabled and unable to perform their work.
   The age specified in the first paragraph may be adjusted by the company upon request from the central competent authority for those engaged in work involving danger, strong physical strength, or other special characteristics, but the age shall not be less than fifty-five years old.
   If an employee injured on the job is deemed mentally or physically disabled and unable to perform their work, the company may not force them to retire during their medical rehabilitation period.
3. Retirement pension standards
   Since July 1, 2005, when the Labor Standards Act came into effect, our company has been contributing 6% of employees' salaries monthly to their individual retirement accounts.
4. Labor Standards Act Retirement Benefit Standards
   Workers who have reached the age of sixty are entitled to receive retirement pensions in accordance with the following provisions:
   1. Those who have worked for more than 15 years can choose to receive a monthly pension or a lump-sum pension.
   2. Those who have worked for less than 15 years are entitled to receive a one-time retirement pension.
   Once the method of claiming retirement pension is selected according to the provisions of paragraph 1 above and approved by the Bureau of Labor Insurance, it cannot be changed. The first item, years of service, shall be calculated based on the actual years of retirement pension contributions. For those whose years of service are interrupted, the years of service before and after the interruption shall be combined for calculation.
5. The statute of limitations for retirement pension payments under the Labor Standards Act and the extinction of retirement pension claims under the Labor Standards Act.
The retirement pension payable by our company to its employees under the Labor Standards Act shall be paid within thirty days from the date of the employee's retirement. The aforementioned payment period does not include the period for review and approval by the competent authority.

Implementation of retirement pension

Since July 1, 2005, our company has had a fixed retirement contribution method in accordance with the "Labor Retirement Pension Act," applicable to employees of Taiwanese nationality. For employees who choose to apply the labor retirement pension system stipulated in the "Labor Retirement Pension Act," our company contributes 6% of their monthly salary to the employee's individual account at the Bureau of Labor Insurance. Employee retirement pension payments are made monthly or in a lump sum, based on the amount accumulated in the employee's individual retirement pension account. Subsidiaries contribute to employee pension insurance according to the local government's pension insurance system, based on a certain percentage of the total local employee salaries each month. Monthly employee retirement pensions are managed and allocated by the government; subsidiaries have no further obligations beyond monthly contributions. In 2025 and 2024, the retirement pension costs recognized by our group in accordance with the aforementioned retirement pension method were NT$1,252,000 and NT$1,302,000, respectively.