Wage hike amend­ments to be ap­proved

The China Post - - LOCAL -

Law­mak­ers across party lines are ex­pect­ing amend­ments to two out of four acts aimed at at­tract­ing the pri­vate sec­tor to re­duce work­ing hours and raise wages for em­ploy­ees to see swift ap­proval Fri­day.

The pro­posed amend­ments to the Com­pany Act ( ), the Fac­tory Act ( ), the La­bor Stan­dards Act ( ) and the Small and Medium En­ter­prises Devel­op­ment Act ( ) would bring wage raises to em­ploy­ees by re­quir­ing com­pa­nies to es­tab­lish profit shar­ing schemes.

The pro­posed amend­ments to two of the four act, in­clud­ing those to the Com­pany Act call­ing for com­pa­nies to al­lo­cate a lump sum or per­cent­age of earn­ings to­wards profit shar­ing schemes, and to the the Fac­tory Act re­quir­ing prof­itable firms to dis­trib­ute earn­ings to em­ploy­ees, are ex­pected to see the least dis­sent, and be ap­proved next Fri­day, said rul­ing Kuom­intang law­maker Lai Shyh-bao ( ).

Mean­while, busi­nesses said that the pro­posed amend­ments to the La­bor Stan­dards Act, which will levy fines of un­der NT$5 mil­lion on com­pa­nies which fail to es­tab­lish a profit shar­ing scheme, will cre­ate stand­offs and rifts be­tween em­ploy­ers and em­ploy­ees.

Demo­cratic Pro­gres­sive Party law­maker Huang Wei- che (

) , how­ever, said that although the op­po­si­tion party sup­ports the move, it has lin­ger­ing con­cerns on the pro­posed amend­ments to the Small and Medium En­ter­prises Devel­op­ment Act.

Law­mak­ers said that the amend­ments to the Small and Medium En­ter­prises Devel­op­ment Act are likely to see the most dif­fi­culty in the ap­proval process. The pro­posal stip­u­lates that fol­low­ing six con­sec­u­tive months in which the un­em­ploy­ment rate has re­mained un­der 3.78 per­cent, com­pa­nies will be able to claim 130 per­cent of the amount of raises given to their em­ploy­ees as de­ductible ex­penses on their taxes. The tax de­ductible amount, how­ever, ex­cludes raises that come from min­i­mum wage ad­just­ments.

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