Samsung Electronics' DS Special Management Performance Bonus to Be Paid in Late March Next Year... Joint Donation Also Planned

Special management performance bonus details finalized
10.5% of this year's operating profit to be used
Payment planned after 49.5% tax withholding

The special management performance bonus for Samsung Electronics' Device Solutions (DS) Division, which oversees the company's semiconductor business, will be funded with 10.5% of this year's operating profit and paid between late March and early April next year. The company and labor union also plan to make a joint donation based on employees' voluntary participation.

Samsung's Seocho office building. Yonhap News.

According to industry sources on October 7, Samsung Electronics' DS Division finalized and announced the details of the special management performance bonus internally that day. The announcement said payment is scheduled for late March or early April next year, immediately after the resolution at the regular shareholders' meeting in March. The bonus plan is expected to be submitted as an agenda item at next year's regular shareholders' meeting, making next year the taxable year.

The total payment will be determined by multiplying each employee's base amount by the payout rate for their business division. The payout rate will be calculated based on the organization within the DS Division to which each employee belonged for the longest period in 2026, and will be announced for each business division in February next year. The Power Semiconductor (CSS) Business Team is excluded.

For tax withholding, a flat rate of 49.5%—the top income tax rate of 45% plus 4.5% in local income tax—will be applied before payment. This measure is intended to reduce employees' burden of additional tax payments during year-end tax settlement. The full amount remaining after taxes and insurance premiums are deducted will be paid in company shares. One-third of the shares can be sold immediately, while the remaining shares will be subject to sale restrictions, with half restricted for one year and the other half for two years.

Eligible recipients include employees on staff as of December 31 this year, as well as those on childcare or pregnancy leave. However, employees who worked for one month or less this year, those on other types of leave or suspension as of December 31, and those who joined the company on or after October 1 this year will not be eligible.

The company and labor union will also pursue a joint donation pledge linked to the bonus. If DS Division employees voluntarily choose to donate between 0.2% and 1.0% of their bonuses, the company plans to match each contribution one-to-one. The two sides will continue discussions on details, including the recipient organizations.

In May this year, Samsung Electronics and its labor union introduced the special management performance bonus system through wage negotiations, agreeing to use 10.5% of operating profit as a bonus fund, with no separate cap.

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