FFHC regularly references professional institutions' survey reports on market remuneration and benefit levels. Our employees' full salary is on par with the P70 level (i.e. better than 70% of our financial market peers). In 2024, a pay raise of around 4.6% was implemented across the board. After promotion and full seniority bonuses were factored in, the overall rate of pay hike exceeded 8%. The average salary of our full-time employees in non-supervisory positions was NT$1,539 thousand, up 10.16% from NT$1,397 thousand in 2023. The total employee benefit expenses amounted to NT$20.08 billion in 2024, up 7.21% from NT$18.73 billion in 2023.

For employee compensation at overseas units, we take into account the remuneration survey results of international management consultants as well as local economic data, compensation trend forecasts and information exchanged with local competitors. The pay grade principle was used to gradually adjust the remuneration standards of local employees overseas. We are also focusing on global human resources issues to better look after the livelihoods of local employees and compliance with labor laws.

The average monthly salary of FFHC's employees at our overseas business locations, regardless of whether they are of Taiwanese nationality or local hires, is higher than or close to living wages. We adopt the Anker Methodology for Estimating a Living Wage. Using Numbeo's database and the monthly necessary living expense promulgated by Taiwan's Ministry of Health and Welfare, we have established FFHC's living wage database for our business locations around the world, which is used to evaluate the gap between employees' salaries and living wages. By doing so, we are able to realize a workplace that respects labor based on FFHC's fair compensation framework.

The Company provides a fair and reasonable employee performance assessment system., in an effort to build a consensus on personal goals imposed by the Company on each employee. The Company would reference each employee's mid-year assessment results to evaluate his/her annual performance at the end of each year. 35% of our employees' year-end bonuses are based on their long-term performance and special contributions. Each subsidiary has also set up its reward systems for the promotion and sales of sustainable financial products and services. ESG educational training accounts for around 5% to 6% in performance assessments. In 2024, 30.2% of group employees' compensation was related to their performance regarding sustainable financial products. The Company has also formulated the "Employees Stock Options Purchase Plan". When the Company conducts a round of cash capital increase, we would allocate shares to each company's employees at prices more favorable than market subscription prices, in commensurate with their pay grades, tenure periods and performance. Tenure and pay grades are also factored in when calculating employee compensation. When evaluating employee promotions, we would also take into account their assessments and award/punishment records from the past nine years. When selecting and promoting management trainees, we would also consider their assessment results from the past five years, in addition to making participation in volunteering events a prerequisite. It is evident that the Group's employee compensation is highly correlated to their long-term performance and our sustainable development strategies. Additionally, we strive to promptly respond to market trends and changes by shaping a culture of agile communications that values teamwork.

FFHC retains talent through forward-looking benefit packages, and encourages our employees to make long-term savings plans and plan for retirement. Since 2019, First Commercial Bank has been providing the "Establish Employee Savings and Stock Ownership Trust", offering full-time employees who have worked for the Company for more than half a year the choice of participating in this savings or stock ownership trust program. After that, various companies within the Group have conducted their employee stock ownership trust programs across the board since 2024, in which the companies subsidize and contribute a fixed amount of funds to invest in and hold FFHC stocks for long-term ownership in order to enhance cohesion. The participation rate was 94.98% till the end of 2024. Employee return ratios from the investment balance of the mandatory pension contribution account are formulated in accordance with the duration of their participation:

FSITC has formulated the "Investment Researcher's Compensation and Penalty Plan", in which fund managers who have consistently met two-year or three-year standards for their performance in fund operations are eligible for long-term performance bonuses distributed in installments. The plan is meant to urge them to pay attention to long-term performance.

Additionally, First Life Insurance also contributes to the employee job retention benefit fund every month, in addition to repurchasing group annuity insurance policies in accordance with their own wishes, as part of the company's efforts to boost its employees' economic autonomy after they retire. As of the end of 2024, 153 employees had signed up for the plan, and NT$57.28 million had been contributed cumulatively.

FFHC is devoted to promoting the workplace vibe of a happy company, providing a comprehensive system for benefit packages and compensation/bonuses. It encourages employees to vie for better performance through an incentive reward distribution mechanism. Furthermore, we have also established a smooth channel for promotion, and regularly conduct talent selection, assessment and promotion-oriented training exercises for manager trainees at various levels as well as for overseas management. We have built a database for the purpose of compiling data for analysis in accordance with employees' attributes, experiences and characteristics, which serves as an important reference for employees' career development and planning. Except for ordinary new hires who replenish retiring and departing employees, all professional and management talent are mostly cultivated in-house. We also encourage employees to use their off-duty time to pursue on-the-job training and learning. We also subsidize related tuitions in accordance with courses and grades. Employees pursuing a master's degree both at home or abroad can apply for unpaid leave for up to three years. This measure is intended to develop lifelong employment capabilities for employees in order to increase corporate sustainability.

To promote internal talent flows and plan for employee career development, we value employees' on-the-job training, in addition to enhancing the disclosure of information pertaining to internal job openings. We also enforce systemic job rotations in hopes of reducing employee turnover rates. At the end of 2024, the Group's turnover rate stood at 5.52%. However, the turnover rate was 4.54% after deducting those forced to retire in compliance with the Labor Standards Act. As of the end of 2024, 76.67% of our internal job vacancies had been filled.

The Company has raised the starting pay for new hires on multiple occasions in recent years. The 6.5% pay raise is higher than half of our industrial peers. The ratio between our starting pay for entry-level employees and the nation's minimum wage is 1.5:1. We strive to establish a differential bonus system through a transparent and fair mechanism for promotions and performance assessments. The retention rate of new hires was 86.61% in 2024. Pensions are disbursed to retirees in accordance with the "Employee Pension Rules". In 2024, approximately NT$682 million was contributed to the retirement pension.

Through the employee commitment survey, the Group has been listening to our employees' feedback on their level of job satisfaction and company recognition as well as suggestions on training and development since 2017, in an attempt to improve and optimize related operational and management systems. The overall level of employee commitment was 90.54% in 2024, setting a new high in three years while indicating that the Group's employees are actively committed to their jobs and willing to contribute to delivering on the Group's objectives and missions. It is also indicative of the fact that, in the face of an ever-changing financial environment, agile communications and an agile management model are effective in solidifying team cohesion, enhancing structural resilience, and creating a successful corporate culture.

With regard to the shortest company notice for important job changes, the Company complies with related labor regulations, including the "ILO Forced Labor Convention Indicators", Taiwan's "Labor Standards Act", "Employment Service Act", "Act of Gender Equality in Employment", and "Middle-aged and Elderly Employment Promotion Act", to stipulate them in work regulations and related personnel management regulations, which encompass: A week's notice for all manpower deployments necessitated by business needs; For overseas employee assignments, a reasonable notice would be provided to allow for understanding of the regulations, culture, and daily needs of a particular foreign country, as well as business handover details; A forenotice for labor contract termination may be given due to business closure, transfer of ownership, losses, business contraction, changes in the nature of business, or employees' inability to assume their job responsibilities . The period of the forenotice is as follows: (1) A 10 days' forenotice shall be provided to employees who have worked for the Company for more than three months but less than one year. (2) A 20 days' forenotice shall be provided to employees who have worked for the Company for more than one year but less than three years. (3) A 30 days' forenotice shall be provided to employees who have worked for the Company for more than three years.

To maintain good communications and interactions, each company provides a variety of channels for employee communications and whistle-blowing, in addition to protecting whistle-blowers from inappropriate handling for stepping forward. Employees may use the following channels of communications, complaints and whistleblowing.

To create a positive work environment, maintain the physical and mental well-being of employees as well as build up passion and loyalty of employees, FFHC provides a wide range of employee health management mechanisms and benefits: