Remuneration and Bene ts
Arcadyan maintains a fair, transparent, and market-competitive compensation system. In addition to base salaries, employees are eligible for profit-sharing compensation, year-end bonuses, project bonuses, and patent incentives. Salary adjustments and incentive awards are determined based on the Company’s operating performance and individual performance. Employees receive performance evaluations twice a year, which serve as an important basis for rewards, promotions, and career development.
Arcadyan provides labor insurance, health insurance, pension plans, and other statutory benefits in accordance with applicable laws. The Company is committed to equal pay principles and does not discriminate on the basis of race, nationality, age, religion, disability, gender, or other personal characteristics. Arcadyan strives to provide a fair, respectful, diverse, and inclusive workplace for all employees.
Compensation of Non-Management Employees at Headquarters (NT$ Thousand)
Ratio of Direct Employee Salary to Local Statutory Minimum Wage
Living Wage Commitment and Implementation
Arcadyan believes that fair and competitive compensation is fundamental to employee well-being and sustainable talent development. To uphold fair pay and labor dignity, the Company established its Living Wage Commitment with reference to methodologies developed by the Global Living Wage Coalition (GLWC) and the Fair Labor Association (FLA), as well as the principles of UN Sustainable Development Goal 8 (Decent Work and Economic Growth). The commitment aims to ensure that employees receive wages sufficient to meet their basic living needs within regular working hours.
Based on the living wage definitions developed by the Global Living Wage Coalition (GLWC) and the Fair Labor Association (FLA), which state that wages should be sufficient to cover essential living expenses such as food, housing, healthcare, education, and a reasonable level of savings, Arcadyan continues to refine its compensation policies. The Company also regularly reviews and adjusts its compensation structure based on factors such as local minimum wage levels, cost of living, and inflation at each operating site. Through the Living Wage Commitment, Arcadyan seeks to ensure that its compensation practices align with local economic conditions and employees’ basic needs.
Implementation of the Living Wage Commitment is coordinated by the Sustainability Office and managed by the Human Resources and Administration Department. Arcadyan annually reviews living costs, inflation trends, and market compensation data across its operating locations, and evaluates the alignment between its compensation structure and living wage benchmarks as a reference for annual salary planning. The Company also considers living wage requirements, individual performance, and market conditions when reviewing the appropriateness of base pay, allowances, and incentive programs.
In 2025, Arcadyan achieved a living wage attainment rate of 99.2%. Analysis showed that the small proportion of employees below the living wage benchmark was primarily concentrated among employees under the age of 30 who were in the early stages of their careers and still building professional experience, as well as employees in entry-level administrative support positions. To further narrow the gap, Arcadyan has implemented the following improvement measures:
- Dynamic Compensation Assessment: Regularly review compensation structures and assess different employee groups with reference to changes in living costs as a basis for salary adjustments.
- Enhanced Compensation Review Mechanism: Strengthen the linkage between compensation, performance, job contribution, and market benchmarks to improve the fairness and competitiveness of the compensation system.
- Expanded Communication and Awareness: Promote living wage concepts through sustainability communication platforms and internal communication channels to enhance employee understanding of fair compensation.
Arcadyan will continue to review compensation practices and address gaps between wages and living wage benchmarks while integrating career development and capability-building initiatives. The Company has established a medium- to long-term goal of achieving living wage compliance across all operating locations by 2028.
Retirement System
Arcadyan values employees’ retirement benefits and long-term financial security. In accordance with applicable laws and regulations, the Company has established a Retirement Benefits Supervisory Committee and implemented the Employee Retirement Plan. Through systematic administration and annual actuarial evaluations, Arcadyan manages pension contributions and related obligations. The Company engages independent actuaries each year to assess pension liabilities and funding adequacy to ensure the stable operation of its retirement system.
Arcadyan makes retirement contributions in accordance with the regulations of each operating location. At Arcadyan Headquarters, for employees covered under the old pension scheme, the Company contributes 2% of monthly salaries to the pension reserve fund in accordance with the Labor Pension Act, with cumulative contributions reaching NT$167,854 thousand as of the end of 2025. For employees covered under the new pension scheme, Arcadyan contributes 6% of monthly salaries to individual pension accounts administered by the Bureau of Labor Insurance. Overseas operations also comply with local social insurance and retirement requirements, with contribution rates of 16% of salary in China and 14% in Vietnam. In 2025, subsidiaries included in the consolidated financial statements recognized total pension expenses of NT$103,145 thousand, while labor insurance, health insurance, and employee welfare expenditures totaled NT$402,801 thousand, reflecting Arcadyan’s ongoing commitment to employee protection and long-term well-being.
Employee Benefits Programs
In addition to statutory benefits and insurance coverage, Arcadyan provides a wide range of employee benefits, including flexible working hours, meal subsidies, a quality work environment, and recreational activities to support work-life balance. Headquarters facilities include an employee cafeteria, café, lounge areas, and parking facilities. The Company also offers leave and employee care programs that exceed legal requirements, helping enhance employee experience and quality of life.
To promote employee well-being and engagement, Arcadyan encourages participation in various clubs and recreational activities and provides resources that support health and stress management. The Employee Welfare Committee also organizes family days, company outings, and festive events to strengthen employee interaction, family involvement, and employees’ sense of belonging and well-being.
Family-Friendly Parenting Support
Arcadyan values employees’ family well-being and work-life balance. Since 2011, the Company has provided a childbirth subsidy of NT$66,000 per newborn and partnered with childcare and early education providers to offer childcare support and discounted services. Through these family-friendly initiatives, Arcadyan helps employees reduce parenting burdens and fosters a workplace that supports family development.
Employee Recognition and Retention
Through its Long-Service Employee and Outstanding Employee Recognition Programs, Arcadyan recognizes employees for their long-term dedication and outstanding performance. By providing public recognition and incentive awards, the Company encourages continuous growth and professional development. These programs help strengthen employee engagement, promote talent retention, enhance organizational cohesion, and support Arcadyan’s long-term competitiveness.
