Hire in Taiwan
Currency
New Taiwan Dollar
Capital
Taipei City
Official Language
Mandarin Chinese
Payroll Cycle
Monthly
Our quickstart guide to hiring in Taiwan
Learn everything you need to know about hiring an employee in Taiwan
Wage & Tax Obligations
Minimum Wage Requirements
The minimum wage is TWD 26,400 per month.
Individual Income Tax
The individual income tax ranges from 5% to 40%. Income tax is calculated according to progressive rates.
Payroll Cost
The employer cost is generally estimated at 21.6% of the employee's salary.
General Labor insurance - 7.70%
Employment Labor insurance - 0.70%
Vocational Disaster Labor insurance - 0.22%
Wage fund Labor Insurance - 0.025%
National Health Insurance - 4.83912%
Pension (Labor Pension Act) - 6.00%
Supplementary National Health Insurance contribution - 2.11%*
Only for employees with a monthly salary higher than TWD 219,500.
Please note, effective October 1, 2024, employees with children aged between 0 and 6 years will be eligible to receive a childcare allowance of TWD 10,000 per child per year, to be paid annually in October of each year.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.
Overtime payment can be mandatory for positions that are not considered managerial. Hours outside of standard work hours are considered overtime.
Employees can work a maximum of 4 hours of overtime. For additional hours, employees are paid:
Normal working days
134% of the hourly rate, the first 2 hours.
167% of the hourly rate, the following 2 hours.
For rest days
234% of the hourly rate, the first 2 hours.
267% of the hourly rate, the following 10 hours
On public holidays, annual leave, or regular leave, employees are paid 200% of their hourly rate
Leave Policy
Maternity Leave
Employees who have worked for 6 consecutive months are entitled to 8 weeks of paid leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay. If the employee has been with the company less than 6 months, they are only entitled to 50% of their salary during the leave period.
Employees are entitled to an additional 5 days of leave to use for medical checkups before giving birth.
Paternity Leave
Employees are entitled to 5 days of paid paternity leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.
Parental Leave
Employees are entitled to 2 years of parental leave. Both parents can decide how to distribute the time off. Either parent can take parental leave. Parental leave is unpaid.
Sick Leave
Employees are entitled to paid sick leave for up to 30 days. They are also entitled to up to 1 year of hospitalization leave over two years. Sick leave is paid at 50% of the employee's salary by the employer.
Termination
Termination Requirements
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Employee dismissal must be according to the Labor and Standards Act (LSA). Both employer and employee are required to provide notice or payment in lieu. Any non taken holidays, payments, or benefits must be paid upon termination.
Notice Period
The minimum notice period is 0 days and will be increased according to the length of the employment.
Continuous employment for less than 3 months - No notice
Continuous employment for at least 3 months but less than 1 year - 10 days
Continuous employment for at least 1 year but less than 3 years - 20 days
Continuous employment for at least 3 years - 30 days
Severance for Employees
Required if termination is due to redundancy or poor performance, at 0.5 month’s average salary per year of service, or its prorated amount if the employee’s length of service is less than 1 year.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 3 working days of paid time off (PTO) a year. PTO and accrual rate varies depending on the length of services. Employees are eligible for annual leave after 6 months of work. During the first year of employment, an employee is not allowed to take more than 3 days.
6 months of employment - 3 days' paid leave
1 year of employment - 7 days' paid leave
2 years of employment - 10 days' paid leave
3 years of employment - 14 days' paid leave
5 years of employment - 15 days' paid leave
10+ years of employment - 1 additional day is given every year, the maximum annual leave is 30 days.
Public Holidays
Taiwan celebrates 13 national holidays.
National public holidays include:
New Year's Day
Republic Day
Chinese New Year Holiday
228 Peace Memorial Day
Children's Day Holiday
Children's Day
Qing Ming Festival
Labour Day
Dragon Boat Festival
Mid-Autumn Festival Holiday
Mid-Autumn Festival
ROC National Day
Disclaimer
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. Anemone HR disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. Anemone HR periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. Anemone HR disclaims all liability for the privacy practices or the content of such websites.