Page 350 - TSMC 2022 Annual Report

c. Employee benefits expenses
Post-employment benefits Defined contribution plans Defined benefit plans
2022
$ 3,663,757 208,641 3,872,398
$
2021
3,028,282 192,485 3,220,767
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Years Ended December 31
Share-based payments
Equity-settled 266,746 Cash-settled 32,704
Other employee benefits
Employee benefits expense summarized by function Recognized in cost of revenue
Recognized in operating expenses
299,450 209,410,863 $ 213,582,711
$ 128,714,551 84,868,160
$ 213,582,711
143,894,842 $ 147,115,609
$ 90,226,056 56,889,553
$ 147,115,609
According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors
and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual profits during the period, respectively.
The Company accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:
Years Ended December 31 2022 2021
Profit sharing bonus to employees $ 60,702,047 $ 35,601,449
The Company’s profit sharing bonus to employees and compensation to directors for 2022, 2021 and 2020 had been approved by the Board of Directors of the Company, as illustrated below:
Years Ended December 31
Resolution Date of the Company’s Board of
Directors in its meeting
Profit sharing bonus to employees Compensation to directors
2022 2021 February 14, February 15, 2023 2022
$ 60,702,047 $ 35,601,449 $ 690,128 $ 487,537
2020 February 9, 2021
$ 34,753,184 $ 509,753
There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2022, 2021 and 2020, respectively.
The information about the appropriations of the Company’s profit sharing bonus to employees and
compensation to directors is available at the Market Observation Post System website.
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