Employees are the most important assets of an enterprise. Asia Cement continues to build a cohesive workplace environment, and offer diversified development through a competitive remuneration system to assist employees in refining the necessary skills for the work, to create a friendly working environment and to create a good interactive organizational culture. By providing this solid foundation, the Company expects that employees can reach their full potential and grow together with the business. It is the most solid foundation of Asia Cement’s sustainable operation.

《Policy commitment and management system》

Establish a competitive remuneration system and a complete employee welfare and retirement benefit system.
Establish a talent development quality management system.
Establish a complete performance management and promotion system.
Provide employees with a complete training system for growing.
100% gender equality in Asia Cement.

Regarding employee remuneration, Asia Cement has stipulated in its Articles of Incorporation that if there are profits in the year, 0.1% - 4.0% of the net earning before tax shall be contributed as the employee remuneration. The percentage of appropriation in the subsidiaries shall be 1%-5% of the net earning before tax. All Asia Cement employees can commonly enjoy the results of the operation. In 2022, Asia Cement contributed 1.14% of the pre-tax profit as the remuneration for employees.

Gender Pay Equity

Employees in Taiwan (Unit: Ratio between female and male)

Employee long-term incentive measures

All 100% full-time employees of Asia Cement can enjoy variable remuneration and employee welfare based on performances. The remuneration system was designed to motivate employees by linking to Company’s operational earnings (financial index), coal consumption of the production department (energy index) and individual performance. While most employees of Asia Cement are male, the salary structure does not differ by gender, 100% gender equality in Asia Cement.

	Year-end special bonus Year-end special bonus: On the basis of the main business operational net earnings (financial index) to sign the agreement with the corporate labor union to allocate bonus according to the ratio set out in the agreement. The earnings are shared by both employer and employees.
	Bonus for 3 festivals Bonuses for three main festivals: They are linked with departmental production performance index and paid out before each festival.
	Bonus for energy saving performance Bonus for energy saving performance: It is calculated according to the goals of sustainability including reduced coal consumption during the production, electrical power and oil saved (energy index) and the items encouraging circular economy in order to reach sustainable operation.
	Employees’ renumeration Remunerations for employees: Employees’ remuneration was set out in the Article of Incorporation of Asia Cement, the idea is to share the earnings. The way of allocation is 70% of the amount based on work and group performances, 30% based on individual performance evaluation, for example: target of carbon reduction, target of quality improvement, plus index of behavior competency, enforced from January 1, 2011 till present time.

Employee Stock Ownership Plan

All regular employees with at least five years of experience in Asia Cement are eligible for the Employee Stock Ownership Plan.

In order to attract and retain employees as well as protect employees’ retirement welfare, Asia Cement launched an “Employee Stock Ownership Plan” program since 1998 till present time for employees to purchase company stocks every month. On the basis of the hierarchy of management and the rank of job position, the program stipulated the appropriated amount for each rank respec- tively and a contribution of 30% by the Company, for employees to regularly purchase the compa- ny’s stocks for long-term holding and share the accomplishment of the company’s operation.Up to December of 2023, a total of 346 employees were qualified to join stock ownership trust, 73% of the total employees in Asia Cement. 281 of them actually joined stock ownership trust, 59.4% of the total employees in Asia Cement.

Protecting the welfare system for full-time employees

For guaranteeing all employee welfare, Asia Cement and its subsidiaries established the systems to ensure the completeness of the welfare, which include: “Labor Retirement Reservation Supervision Committee”, “Labor Pension Supervision Committee”, “Employee Shareholding Board” and “Employee Welfare Committee”.

Labor Pension Supervision Committee	Employee Welfare Committee
Periodically conducting meetings to review the appropriation and utilization of the pension to fully protect the pension rights after retirement of employees. Asia Cement adopts both the new and old pension systems for employees, it withdraws 6% pension preparation fund from the wage based on the monthly wage classification table by law and deposits it into the individual employee account in the Labor Insurance Bureau to maintain the rights of employees; it also appropriates a monthly labor pension preparation fund (8%) to maintain the rights of the employees who select the old pension system.	Appropriating welfare fund by law to conduct various activities. The plant is constructed with basketball court, tennis court, badminton court, table tennis court and swimming pool for the recreation of the employees. Other welfares also include the subsidy for employee health check, group comprehensive insurance, children education, company trip and club activities.

Labor Pension Supervision Committee

Employee Welfare Committee

Periodically conducting meetings to review the appropriation and utilization of the pension to fully protect the pension rights after retirement of employees. Asia Cement adopts both the new and old pension systems for employees, it withdraws 6% pension preparation fund from the wage based on the monthly wage classification table by law and deposits it into the individual employee account in the Labor Insurance Bureau to maintain the rights of employees; it also appropriates a monthly labor pension preparation fund (8%) to maintain the rights of the employees who select the old pension system.

Appropriating welfare fund by law to conduct various activities. The plant is constructed with basketball court, tennis court, badminton court, table tennis court and swimming pool for the recreation of the employees. Other welfares also include the subsidy for employee health check, group comprehensive insurance, children education, company trip and club activities.

The measures taken by Asia Cement which are superior to the legal standards

	Paid Sick Leave Employees entitled to have 30 days paid sick leave.
	Health Examination The Company provides a health examination every two years which is superior to legal standards. The checked items include resting electrocardiogram, abdominal ultrasound, cancer screening. In addition, an advanced health examination project is provided to the employees above certain job grade.
	Group Insurance The Company provides to employees the company paid term life insurance, casualty insurance, hospitalization medical insurance and cancer insurance.
	Business Trip Insurance The Company provides overseas business trip insurance.
	Other Welfare The Company provides subsidy to traveling, gift certificates for birthdays, 3 festivals and Labor Day, cash gift for wedding and giving birth, consolation money for funerals.