Samsung Electronics Performance Bonuses: Semiconductor Division Gets 50% of Annual Salary, Home Appliances Receive Single-Digit Percentages

Announcement of Expected Payout Rate... Final Confirmation and Payment in January Next Year

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[Asia Economy Reporter Moon Chaeseok] Samsung Electronics is reportedly planning to pay semiconductor (DS) division employees about half of their annual salary as performance bonuses early next year.

According to industry sources on the 28th, Samsung Electronics notified the internal announcement of the excess profit incentive (OPI) payment rates by division. OPI is paid once a year up to 50% of an individual's annual salary within a 20% limit of the excess profit when the division's performance exceeds the target set at the beginning of the year.

The OPI payment rate for the DS division, which handles semiconductor business, is known to be around 47-50%. The exact amount is being calculated and will be finalized and announced at the payment time in January next year. This is similar to the OPI paid earlier this year.

By division, the smartphone division MX (Mobile Experience) has an OPI rate of 29-33%, and the TV business division VD (Visual Display) is at 18-22%.

For the home appliance division, the OPI payment rate is reported to be in the single digits. The low payment rate in the home appliance division is attributed to worsened performance due to reduced demand amid the economic downturn.

OPI, along with the Target Achievement Incentive (TAI), is Samsung Electronics' representative performance bonus system. Earlier, Samsung Electronics announced internally on the 21st that the scale of the second half TAI would be significantly reduced. The DS division's TAI was 100% of the base salary in the first half but was reduced to 50% of the base salary in the second half.

This content was produced with the assistance of AI translation services.