In order to improve the salary treatment of grassroots employees and strengthen corporate social responsibility, the Legislative Yuan passed an amendment to Article 14 of the Securities Transaction Act on July 16, 2024, which was officially announced on August 7 of the same year. This new regulation requires all publicly listed companies to amend their articles of association before the shareholders' meeting in 2025 and formally implement it starting in 2026, allocating a certain percentage of annual profits for adjusting the salaries or compensating grassroots employees.

According to the amendment, listed companies must specify in their articles the method for allocating annual profit, which may include fixed amounts, range settings, or the establishment of minimum limits for salary adjustments of grassroots employees. If a company has accumulated losses, it must first make up for those losses; the salary or compensation allocated to employees can be deducted from the annual income of the business.

According to the announcement from the Ministry of Economic Affairs, grassroots employees refer to full-time personnel who are not managerial and earn less than NT$63,000 per month. Taking into account the differences among industries and company sizes, each company can flexibly adjust the applicable targets according to its situation, but the minimum standard must not be lower than NT$63,000 monthly salary. When determining the range of grassroots employees, companies should go through internal procedures and obtain board resolutions to ensure fairness and enforceability, also requiring regular reviews and adjustments.

The Financial Supervisory Commission has reminded that a total of 1,874 listed companies in Taiwan must complete the amendment of their articles before the shareholders' meeting in 2025 to comply with the new regulatory requirements. Companies can choose to implement salary increases, pay compensation, or both, depending on their operational situation, and relevant systems must be incorporated into internal control systems to ensure implementation.

The Financial Supervisory Commission indicated that the purpose of this amendment is not only to raise grassroots salaries but also to encourage companies to share results with their employees, which helps with talent retention and acquisition, while also reinforcing the concepts of corporate social responsibility and sustainable development. Through this policy, overall salary structures are also expected to develop positively in the future, forming a virtuous cycle.