Legality of Work Contract

I work for a big, famous IT company. The salary that I am receiving is 5 percent less than the salary written in my employment contract (written in Chinese with my stamp and the company’s stamp), valid for 3 years, that I submitted to the government offices recently. I only learned about this when a good Taiwanese friend of mine read the contract for me and informed me about the discrepancy in the salary that I currently receive versus what was written in the employment contract. My Taiwanese friend advised me to discuss this with my boss.

I raised this issue to my boss in my company. But I’m confused to the kind of reasoning he gave me. He told me that the company “pads” the salary in the employment contract since I’ve already worked for the company for three years, and I can expect an increase in my salary for the next three years. So the amount reflected in the contract represents the upcoming increases I will get. Besides, he told me that this is the only way to justify the company’s “reputation” to the government offices. Something like the company will lose “face” if they put the salary I’m currently receiving now since the rate for the job I’m doing, won’t be at par with the level of increase deserved by someone who’s stayed here for more than 3 years.

But I totally doubt this. The employment contract I initially had which was also valid for three years, reflected the actual salary I got each month. It didn’t include any bonuses or increases in the clause.

Hope someone could help me assess the real score. I smell something fishy.

Well, it depends on the wording: If it says your annual salary is the amount X then you should get paid the amount X / 12 minus tax every month.

Sounds very fishy to me, too - and the reasoning by your boss is just funny, or sad?

Well, seems to be a common problem that big, famous companies cannot get their act together when drafting up and honoring expat contracts!?

I have seen your problem more than once and this is what I believe. In order for Taiwan companies to successfully obtain work permits for foreigners, they have to state a

If he says “bit famous IT company” I assume it’s an international company and he is working on an expat basis.
So he should get what’s written in the contract divided by 12.

I don’t think I am lucky but then I wrote my current employment contract myself!