Employee Communication and Benefits

"People orientation" is the essence of Advantech, while "work, study, and love" are the driving forces behind the growth of Advantech employees. Advantech's "ABLE Club" consolidates employee relations (ESR), the Foundation, and the Welfare Committee to encourage employees to engage in innovative learning, experience life, and contribute to society. From various aspects such as sports, wellness, health, arts and culture, education, and public welfare, the Company aims to enhance interactions among employees, their families, and the community, thereby fostering a sense of cohesion! In 2024, to encourage everyone to maintain a good habit of exercising, walking, and passion for cultural and artistic experiences, we designated the year as the “Advantech Exercise and Health Year”. Advantech has always believed that only happy employees with healthy minds and bodies can enhance the overall performance of the Company. In addition, Advantech encourages employees to extend their positive impact beyond the workplace by caring for communities and promoting public welfare. Through sharing and mutual support, the Company actively practices the philosophy of altruism and aims to inspire a fulfilling life.

Retirement Policy

"Headquarters": There are two types of pension contributions. Monthly contributions shall be made in full according to the law. (1) Under the old pension scheme, a monthly retirement reserve is allocated according to the regulations, which is managed by the Supervisory Committee of the Labor Retirement Reserve and deposited into a special account in Bank of Taiwan in the Committee's name. (2) The new pension scheme contributes 6% of the employee's monthly salary to the employee's pension account. Employees may also voluntarily contribute 0%-6% of their monthly salary to their pension account. The Company will deduct the contributed amount from the employee's salary every month.

"Advantech China":Implemented according to retirement laws and regulations in China. Employees who have paid the statutory social insurance for 15 years can collect a monthly pension after retirement. The retirement age is regulated by the Labor Standards Act: 60 for male employees, 55 for female management, and 50 for female employees. Starting January 1, 2025, the statutory retirement age will be gradually increased. For male employees and female employees whose original statutory retirement age was 55, the retirement age will increase by one month every four months reaching 63 and 58 years old, respectively. For female employees whose original statutory retirement age was 50, the retirement age will increase by one month every two months until reaching 55 years old. Furthermore, Advantech China has a "Deferred Retirement Management Policy:" Non-management female employees can delay retirement until the age of 55. After completing the retirement process at the age of 55, female management and non-management employees can apply for re-employment. executive level supervisors can apply for re-employment after the age of 60.

"Advantech Japan": Contributes 9.15% of the employee’s monthly salary to the government pension account according to the law, and contributes an additional 1.73%-2% of the total monthly salary to the bank’s pension account.

"Other overseas Advantech locations": Employee retirement is processed according to local laws and regulations.

Marriage and Maternity Cash Gifts

(1) All regular employees of Advantech, regardless of gender, are entitled to a wedding gift of NTD 10,000 per person. This policy ensures the rights of diverse gender marriages; colleagues only need to submit a wedding invitation or marriage certificate upon legal marriage to receive this benefit. In 2024, 74 headquarter employees applied for wedding gifts, with the total amount reaching NTD 740,000. Aside from the aforementioned policies, the Employee Services and Relations (ESR) Department conducts due diligence by regularly reviewing the Company's benefits system and benchmarking it against leading enterprises in the market. As a result, in September 2022, the Department proposed increasing the childbirth gift from NTD 3,600 to NTD 10,000, offering a benefit that surpasses legal requirements.

(2) To apply for the childbirth gift, employees only need to submit the newborn’s birth certificate. The gift amount is NTD 10,000 per baby, or NTD 20,000 for twins. In 2024, a total of 72 applications were received at the headquarters, including three sets of twins, resulting in a total disbursement of NTD 740,000. Currently, marriage and maternity cash gifts are available in Advantech China, Advantech Japan, and Advantech Korea.

Parental Leave

Family Care Leave/ Working-from-home Arrangements

Advantech has formulated the WFA mechanism to help employees maintain the flexibility to balance work and family responsibilities as society returns to normal routines. Indirect employees may apply for WFA for one day per week. Under special circumstances, the supervisors can adjust the number of WFA days based on the team’s manpower conditions. The provisional pandemic family care leave system established during the pandemic was discontinued after the pandemic control measures were lifted. In 2024, family care leave was listed as a formal leave category in accordance with legal regulations and will be integrated with personal leave.

Overview of Advantech’s family care leave by region

Employee Assistance Programs (EAPs)

In recent years, enterprises have often applied the "Employee Assistance Program (EAPs)" to help employees cope with work, life, and health-related issues, hoping to help employees solve problems by establishing a service system and consolidating resources. Advantech introduced the EAP service in December 2021 to provide unlimited 24-hour toll-free and email consultation services (total confidentiality), allowing Advantech employees to receive assistance through consultations when they encounter emotional and mental health-related difficulties. Advantech cares about the “spiritual” well-being of its colleagues!

Employee health promotion (headquarters)

I. Health Checkup and Disease Prevention

1. Health Checkup Service

Free itinerant health checkups are provided annually. In 2024, 11 health checkups were performed for 3,554 employees (including their family members).

Biennial in-hospital health checkups were provided for 414 supervisors.

A total of 3,968 employees (including their family members) received health checkups over the year.

2. Advanced Checkups and Disease Prevention

Health checkup items that go beyond regulatory requirements include ultrasound examinations and cancer screenings.

Each health checkup session includes “five cancer screenings,” offering onsite Pap smears, mammography, and oral cancer screenings. In 2024, 479 employees received these services.

After health checkups, we provide comprehensive tracking and management of health issues detected, including: (1) Arrange for follow-up consultations with occupational physicians to assess health risks. (2) Occupational nurses provide individual health education and informational leaflets to encourage healthy behaviors.

II. Employee Engagement & Family-Inclusive Activities

1. Vision & Culture Communication

To align with our corporate vision and evolving strategy, we hosted the year-end New Year & New Vision Gathering in late 2024. Over 4,000 employees, family members, and partners attended. Leadership shared Advantech's refreshed brand declaration and management direction, alongside live performances that strengthened team cohesion.

2. Employee Sports Participation

Held "Taipei Dome Baseball Day" with 2,200+ employees, family, and partners. Chairman K.C. Liu delivered opening remarks, and NVIDIA founder & CEO Jensen Huang and EIoT Platform BG General Manager Miller threw the ceremonial first pitch.

Logged 12,107 total employee participations in health and sports activities—a record high.

1,454 employees joined the Taipei Tech Love the Earth Charity Run, ranking first in participation among companies in the Neihu Science Park

3. Health Promotion

"Muscle Matters" weight-loss & strength-gain challenge: 215 participants; a cumulative 412.1 kg reduced; 6 muscle-gain award winners. The program built healthy eating and exercise habits, emphasizing fat loss and strength building in parallel.

4. Family & Diversity

In partnership with our Foundation, ran the Arts & Culture Parent–Child Camp and Summer Basketball Camp, engaging 300+ colleagues and their children.

Hosted the Advantech Talent Show, inviting employees and families to showcase their skills; 100+ participants joined, and winners performed at the annual gala.

"Filial Piety Outdoor Day" drew 530 employees and their parents, promoting family wellness.

Delivered maternal-health and mid-/older-age lectures and functional-fitness sessions.

Offered EAP (Employee Assistance Program) seminars to support mental health and work–life balance.

III. Health & Convenience Services and Emergency Preparedness

1. On-site Pharmacy Convenience

Partnered with the “Call a Pharmacist” platform to provide office medication delivery and chronic-prescription pickup; 52 employees used the service in 2024, reducing clinic visits and fitting busy schedules.

2. First Aid & Training

AEDs (automated external defibrillators) are installed at our facilities.

AED operation training is conducted annually. In 2024, 64 employees participated in the course.

Diverse Club Activities

To foster diverse interactions among our colleagues and help them achieve work-life balance, Advantech has long supported and encouraged the development of various social clubs. In 2024, 26 social clubs were established at the headquarters (with the addition of the Linkou Basketball Club), covering areas such as sports, LOHAS, arts and culture, and charity, attracting 1,284 participants. There were 89 clubs in Advantech China (including various offices) with more than 2,300 participants, and seven clubs in Kunshan with 137 participants.

Corporate Volunteers in 4 Areas

Upholding the corporate spirit of “giving back to society,” Advantech encourages employees to participate in volunteer services. Through practical actions, we aim to promote social inclusion and cultivate diverse employee skills, thereby fulfilling our corporate social responsibility. To encourage more employees to engage in charitable activities, Advantech launched the “Volunteer Leave System” in 2023, where every employee is entitled to two days (16 hours) of paid volunteer leave per year, with a focus on four core ESG areas: Energy Conservation, Philanthropy (including Environment), Education, and Arts & Culture. Continuing the celebration of Advantech's 40th anniversary, the health theme for 2024 was extended to encompass corporate culture and philanthropic service, encouraging employees to participate in fostering a sustainable society and promoting the shared prosperity of the Company and the environment. In 2024, 362 Taiwan Advantech employees contributed 1,338 hours of volunteer work. In particular, 210 employee volunteers and 152 of their families also contributed 762 hours and 576 hours of volunteer work, respectively. Besides employees' enthusiastic participation in volunteer activities, their involvement also helped raise awareness among their family members and strengthened parent-child bonds. Volunteer activities incorporate diverse sustainable development-related fields including:
￭ Social welfare: The twice-yearly blood drives and support for food banks offer tangible assistance to underprivileged groups.
￭ Environmental protection: removal of invasive species, stream cleaning activities, local community ecological regeneration, afforestation, beach cleanup initiatives, and working together with the community to protect natural resources.
￭ Education and promotion: Enhance public's health awareness through health workshops and sharing of ecology-related knowledge.

Employee Stock Ownership

To attract and retain outstanding talent in the Company, as well as to enhance employees' sense of belonging and loyalty to the Company, and to foster benefits for Advantech and shareholders, the issuance and subscription rules for employee stock options were formulated. This was done so in accordance with relevant regulations such as Article 28-3 of the Securities and Exchange Act and the "Regulations Governing the Offering and Issuance of Securities by Securities Issuers" promulgated by the Securities and Futures Bureau of the Financial Supervisory Commission (Taiwan, ROC), Executive Yuan. Please refer to the annual report for relevant information.

Living Wages

Advantech believes that adopting a living wage is essential to improving employees’ living conditions and well-being. Guided by a people-centric philosophy, the Company ensures that employees can meet their basic needs through fair compensation. Advantech views a living wage as a fundamental labor right and is actively implementing measures to enhance employees’ quality of life, while generating a positive social impact across communities.

The promotion of a living wage is also aligned with global sustainability trends. In 2011, the Organisation for Economic Co-operation and Development (OECD) introduced its Wellbeing Framework, which covers 11 core dimensions including Income & Wealth, Work & Job Quality, Health, Environmental Quality, and Work-Life Balance. Building on this, the Taskforce on Inequality and Social-related Financial Disclosures (TISFD) emphasized “Income & Wealth” and “Living Wage” as key indicators of worker and family wellbeing, highlighting the strong correlation between fair wages and overall quality of life.

According to the International Labour Organization (ILO), a living wage is the level of pay required for workers and their families to afford a decent standard of living. Advantech adopted this principle in 2022 and introduced a Living Wage Methodology, initially extending its implementation to six major operating locations: Taiwan (Headquarters), China, Japan, South Korea, the United States, and Europe. Through cross-functional workshops, localized living wage standards were established based on local cost of living, supported by internal training and system integration to ensure effective application.

In 2024, Advantech further expanded its living wage assessment to 20 significant locations worldwide, covering 8,387 employees—95% of the Company’s global workforce. The calculations were based on the Anker Living Wage Methodology and local cost-ofliving data, including food, transportation, utilities and communication, and housing. The assessment confirmed that all employees across these 20 locations—including the Netherlands, Germany, Poland, France, Italy, Spain, the United Kingdom, Austria, Belgium, the Czech Republic, Ireland, Sweden, Denmark, Norway, Finland, the United States, China, South Korea, Japan, and Taiwan—receive wages that meet or exceed the local living wage standard. Advantech defines a living wage as the minimum income earned during standard working hours, excluding bonuses and overtime pay, sufficient to cover essential expenses such as food, housing, clothing, and other basic needs. In addition to ensuring fair pay for its employees, Advantech also strives to extend living wage practices to suppliers and contractors, requiring them to uphold fair wage standards and thereby contributing to sustainable wage improvements across the industry value chain.

Medium- and long-term planning for the promotion of the living wage concept