Employee Benefits and Compensation Measures
• Establishment of the Employee Welfare Committee:
The company allocates approximately NT$10 million annually for welfare funds and exempts employees from contributing to these funds. The Welfare Committee plans various quality welfare measures based on the opinions of its members, including: gifts for the Lunar New Year, Dragon Boat Festival, Mid-Autumn Festival, Labor Day, employee birthdays, travel subsidies, company anniversary events, and cultural and arts courses.
• Employee Dormitories:
Employee dormitories are provided in Kaohsiung for employees whose residence is more than 100 kilometers away from the company. Employees may apply for full or partial dormitory subsidies.
• Gifts and Subsidies:
This includes wedding and childbirth gifts, scholarships for employees' children, funeral allowances, and lunch subsidies (NT$10 per day for lunch at the Xiaogang headquarters; NT$110 per day for other areas).
• Friendly Work Environment:
The company provides a friendly and safe work environment, ensuring reasonable working hours. When overtime is necessary, employees are fully informed and consulted to ensure their willingness. This promotes a balance between work and personal life. In terms of leave policies, beyond weekends and statutory leave, employees can apply for unpaid leave in cases of parental leave, serious illness, or major personal events, with the option to return to work once the leave period ends. The company also provides equal maternity and paternity leave, along with other rights, to allow employees to meet both personal and family care needs.
• Gender Equality in the Workplace:
To ensure that female employees' employment, pay, and career development are not impacted, the salary system supports gender equality. Entry-level specialists in the same positions receive equal treatment regardless of gender. Salaries are determined by factors such as education, professional experience, previous positions, and years of service, ensuring no disparity due to gender, religion, nationality, or political affiliation. The starting salary and salary adjustment ratio for male and female entry-level employees is set at 1:1, fostering a work environment of equal pay for equal work and promoting the true realization of gender equality in the workplace.
• The company established "Compensation Committee" to offer employees competitive remuneration, reflecting business performance back to employees through a transparent and fair compensation policy.
• Business performance is reflected in employee compensation.
1. The "Year-end Bonus" is based on 12-15% of the company's post-tax operating profit and is distributed to all employees after considering their years of service and annual performance evaluations, encouraging everyone to work toward the company's goals.
2. Employee Compensation" is allocated in accordance with Chapter Six of the company's articles of association. If the company makes a profit in the current year, 1%-5% of the profit is allocated as employee compensation.
However, if the company has accumulated losses, the amount must be reserved to cover those losses first. The recipients of employee compensation include employees of subsidiaries who meet certain conditions.
3. The company conducts annual market salary surveys and adjusts salaries based on market levels, economic trends, and individual performance to maintain overall compensation competitiveness. In 2024, the average salary
adjustment in Taiwan, including for both managerial and non-managerial positions, was 3%.
Company Workplace Gender Equality and Diversity Policy
Our company is committed to providing employees with a dignified and safe working environment. We implement diversity in our hiring practices and ensure fairness in compensation and promotion opportunities. We guarantee that employees will not face discrimination, harassment, or unequal treatment based on race, gender, religious beliefs, age, political orientation, or any other condition protected by applicable laws.
We value employee diversity, and we have significantly increased the employment of individuals with disabilities, surpassing the mandated number under the Disability Rights Protection Act (which requires employing 7 individuals, we have employed double the amount, with a focus on those with severe disabilities, counting each person as two). Additionally, for the 8 indigenous employees currently employed as of 2022, we respect their cultural customs, and there have been no incidents violating their work rights and human rights.
Employee Ethnicity Indicators
| Category |
Percentage of Total Employees (%) |
Percentage in Management Positions (%) |
| Republic of China Nationality |
90.9% |
100.0% |
| Foreign Nationality |
7.8% |
0.0% |
| Indigenous |
1.2% |
0.0% |
Female Diversity Indicators
| Indicator |
Percentage (%) |
2030 Target |
| Female Percentage of Total Employees(%) |
21.4% |
25.0% |
| Female Percentage of All Supervisors(%) |
17.5% |
20.0% |
| Female Percentage of Frontline Supervisors(%) |
19.3% |
25.0% |
| Female Percentage of Top Executives (CEO ≤ Two Levels)(%) |
0.0% |
10.0% |
| Female Percentage in Revenue-Generating Units(%) |
13.2% |
18.0% |
| Female Percentage in STEM (Science, Technology, Engineering, Mathematics) Related Positions(%) |
17.1% |
20.0% |
Other Diversity Indicators
| Category |
Percentage of Full-Time Equivalent Employees FTEs Percentage(%) |
| Persons with Disabilities |
2.1% |
| All Employees |
Grouped by Age：< 30 years old |
11.7% |
| Grouped by Age：30 ~ 50 years old |
61.3% |
| Grouped by Age：>50 years old |
27.1% |
| Total |
100.0% |
Other Diversity Indicators
| Pay Equity Indicators |
Gap (%) |
| Gender Pay Gap (Average) |
9.2% |
| Gender Pay Gap (Median) |
8.1% |
| Gender Pay Gap (Average Variable Bonus) |
17.7% |
| Gender Pay Gap (Median Variable Bonus) |
0.3% |
Human Rights Policy
Please refer to the company's website under the [Governance Section/Annual Shareholders' Meeting Report] for the summary of the implementation progress of the project item "4. Social Issues" under "(5) Implementation of Sustainable Development," specifically the question "(1) Has the company established relevant management policies and procedures in accordance with relevant regulations and international human rights conventions?"
Our company agrees with and voluntarily adheres to internationally recognized human rights standards such as the "United Nations Universal Declaration of Human Rights," "United Nations Guiding Principles on Business and Human Rights," and the "International Labour Organization." We also comply with labor laws in the locations where we operate. Internal employee feedback/complaint email inboxes are set up at each access control point. The key points of our human rights policy include adopting the "Yung Chi Paint & Varnish MFG.CO.,LTD Human Rights Management Policy," which respects the protections outlined in human rights conventions, publishing this policy on the corporate website, and setting up internal employee feedback/complaint email inboxes at each access control point.
We regularly reviews our operations, value chain, new business activities (such as mergers and joint ventures), and other relevant activities through monitoring significant social issues, data monitoring, and surveys. This helps identify and assess vulnerable groups and potential human rights risks. Based on the identified risks, we develop human rights improve plans and continuously monitor and execute.
Summary of our company's human rights management policy and specific initiatives is shown below:
| Human Rights Management Policy |
Specific Initiatives |
| Training on Human Rights Protection |
In August 2024, human rights protection training was conducted with a total of 613 participants, representing 95% of the total domestic workforce. All participants successfully completed the post-training assessment. Moving forward, the company will continue to focus on human rights protection issues and promote related training to raise awareness and reduce the likelihood of human rights risks. |
| Prohibition of Forced Labor, Strict Compliance with Local Government Labor Laws |
The company enforces its leave policies and encourages employees to maintain a work-life balance. QR codes for submitting complaints are available at all access control points for easy scanning and submission. |
| Inclusion of Human Rights Clauses in Supplier Contracts and Implementation of On-Site Audits |
Every supplier is provided with the "Yung Chi Paint & Varnish MFG.CO.,LTD Supplier Code of Conduct" to ensure that they comply with labor, health and safety, environmental, ethical, and management system standards. Suppliers are required to sign and return an agreement declaring their acceptance and commitment to these principles. As of August 2024, a total of 111 agreements have been signed and returned, representing 81% of all suppliers, with three on-site evaluations conducted. |
| Assisting Employees in Maintaining Physical and Mental Health, and Work-Life Balance |
The total break time in the morning, noon, and afternoon amounts to 1.3 hours, providing employees with sufficient time to rest. |
| Providing a Safe and Healthy Work Environment |
Refer to the company's Occupational Safety Team's guidelines for "Workplace and Employee Safety Protection Measures" for detailed instructions. |