Operating costs and expenses

12 Months Ended

Dec. 31, 2019

Analysis of income and expense [abstract]

5.	Operating costs and expenses


	2017		2018		2019
	NT$000		NT$000		NT$000
Change of finished goods and work in process		31,977		—		—
Raw materials and supplies used		3,036,350		3,079,909		3,575,283
Employee benefit expenses		5,895,778		5,606,833		6,075,773
Depreciation expenses		2,899,278		3,376,579		3,731,914
Others		4,530,425		4,464,499		4,590,720

Total operating costs and expenses		16,393,808		16,527,820		17,973,690

Employee benefit expenses
Salaries		4,847,433		4,628,039		5,114,790
Director’s remuneration		27,276		18,456		26,266
Labor and health insurance		390,788		406,111		422,106
Pension		198,502		201,567		194,173
Share-based payments		123,021		41,043		822
Other personnel expenses		308,758		311,617		317,616

		5,895,778		5,606,833		6,075,773

In accordance with the Company’s Articles of Incorporation, employees’ compensation is based on the current year’s earnings, which should first be used to cover accumulated deficits, if any, and then 10% of the remaining balance distributed as employees’ compensation, including distributions to certain qualifying employees in affiliate companies, and no more than 0.5% as directors’ remuneration. Subject to the Board of Directors’ approval, employees’ compensation may be made by way of cash or share issuance. Distribution of employees’ compensation and directors’ remuneration shall be presented and reported in the subsequent shareholders’ meeting.

Based on profit distributable as of the end of reporting period, for the years ended December 31, 2017, 2018 and 2019, the employees’ compensation were accrued at NT$371,912 thousand, NT$199,027 thousand and NT$338,356 thousand, respectively; the directors’ remuneration were accrued at NT$18,596 thousand, NT$9,951 thousand and NT$16,918 thousand, respectively.

For the year of 2018, employees’ compensation and directors’ remuneration recognized were consistent with the amounts resolved in the Board of Directors’ meetings.