Retirement system and implementation

1. The Company's retirement system is implemented in accordance with the Labor Standard Act and relevant Labor Pension Art Regulations. Details are as follows：
   1. Labor Standard Act (old system)

      (1)In each month, 2% of total salaries of employees will be set aside as pension fund paid to the Supervisory Committee of Workers’ Retirement Fund and shall be deposited to a special account of the Bank of Taiwan in the name of the committee, while reserve shall be appropriated pursuant to Article 56 of the Labor Act.

      (2)Retirement pension for those who meet voluntary and mandatory retirement conditions will be calculated according to Article 55 of Labor Standard Act with the average of monthly salary in previous 6 months prior to retirement as the base and paid from the special account.

      (3)Implementation: At present, employees with old systems account for 19.2% of the total in the Company, and allocations are made monthly under the supervision of Supervisory Committee. The retirement reserve for old system was NT$ 3,612,639 until 2022.

   2. Labor Pension Act (New system)

      (1)According to the "Labor Pension Month Payroll Rating Scale", 6% of monthly salaries of employees will be appropriated to the individual pension account in the Labor Insurance Bureau.

      (2)Employees may deposit within 6% of their monthly salary as their pensions as per individual wishes.

      (3)At present, employees with old system have been converted into the new system, with monthly allocation made according to law, while34.6% of employees have voluntary contributions.

      (4)In 2020, the Company has allocation amounts of NT$ 1,940,145 for new system.

2. Overseas subsidiaries allocate retirement funds in accordance with local labor laws.