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Pension and implementation status

Pension Policy of the Company is established based on the Labor Standards Act. For statutory compliance, the Company has increased its contribution from an amount equivalent to 2% of the employees’ total salaries and wages to 6% on a monthly basis to the pension fund managed by the administered pension fund committee since August, 2015.

The Labor Pension Act took effect on July 1, 2005 and adopted a defined contribution plan. Employees can choose the pension systems under the Labor Standards Act or the one under the Labor Pension Act and retain prior seniority. For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan.

Expenses under defined contribution plan were NT$ 20,420 thousand and NT$ 17,899 thousand for the years ended December 31, 2015 and 2014, respectively.