Page 229 - TSMC 2022 Annual Report

20. RETIREMENTBENEFITPLANS
a. Defined contribution plans
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, TSMC and VisEra Tech have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC China, TSMC Nanjing, TSMC Arizona, TSMC Europe, TSMC Canada, TSMC Technology and JASM also make monthly contributions at certain percentages of the basic salary of their employees. Accordingly, the Company recognized expenses of NT$4,550,387 thousand and NT$3,711,010 thousand for the years ended December 31, 2022 and 2021, respectively.
b. Defined benefit plans
TSMC has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.
Amounts recognized in respect of these defined benefit plans were as follows:
$
$
Years Ended December 31
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
Actuarial loss arising from experience adjustments Actuarial loss arising from changes in demographic
assumptions
Actuarial gain arising from changes in financial assumptions
Components of defined benefit costs recognized in other comprehensive income
Total
2022
134,376 74,265 208,641
(429,948) 1,413,760
- (160,752)
823,060 $ 1,031,701
2021
145,289 47,196 192,485
(73,298) 94,278
277,454 (540,513)
(242,079) (49,594)
$
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