Hiring in Taiwan offers companies access to a highly educated, tech-savvy, and hardworking talent pool in one of Asia’s most vibrant economies. Taiwan offers a highly skilled workforce, competitive labor costs, and a business-friendly environment. To succeed when hiring in Taiwan, businesses must understand local payroll regulations, employment laws, statutory contributions, and employee benefits. This guide covers everything you need to know about Taiwan payroll, labor compliance, mandatory insurance, leave entitlements, and best practices for building your team.
📍 Quick Facts About Taiwan
| Key Detail | Information |
|---|---|
| Currency | New Taiwan Dollar (TWD) |
| Capital | Taipei |
| Fiscal Year | January 1 – December 31 |
| Payroll Frequency | Monthly |
| VAT Rate | 5% (Standard) |
💵 Minimum Wage & Payroll Basics
- Monthly Minimum Wage: NT$28,590
- Hourly Minimum Wage: NT$190
In Taiwan, payroll runs monthly. Employers are responsible for income tax withholdings, social contributions, and timely salary payments — all contributing to Taiwan’s reputation for a stable and transparent employment environment.
🏦 Employer Payroll Contributions
Employers in Taiwan contribute approximately 19.8% on top of gross salary to cover important social protections:
| Contribution Type | Rate |
|---|---|
| Labor Insurance | 8.05% |
| Employment Insurance | 0.70% |
| Labor Pension Fund | 6.00% |
| National Health Insurance (NHI) | 4.84% |
| Occupational Hazard Insurance | 0.20% (variable by industry) |
These contributions help fund healthcare, retirement, and worker protection programs — forming the foundation of Taiwan’s strong employee benefits system.
🕒 Work Hours and Overtime
- Standard Hours: 8 hours per day, 40 hours per week.
- Rest Days: Two every week.
- Overtime Pay:
- First 2 hours: 134% of hourly rate
- Next 2 hours: 167% of hourly rate
- Max overtime: 46 hours/month
Taiwan emphasizes work-life balance while ensuring fair compensation for extra hours.
🎉 Bonuses and Extra Pay
- 13th-Month Bonus: Widely practiced, especially during Lunar New Year.
- 14th-Month Bonus & Festival Bonuses: Often paid around Dragon Boat Festival and Mid-Autumn Festival.
Bonuses are a valued part of the employee experience in Taiwan, helping companies attract and retain top talent.
🛌 Leave and Time Off
Paid Annual Leave
Employees accrue paid leave based on service:
| Service Length | Days of Annual Leave |
|---|---|
| 6 months to <1 year | 3 days |
| 1 year | 7 days |
| 2 years | 10 days |
| 3 years | 14 days |
| 5 years | 15 days |
| 10+ years | +1 day/year (max 30) |
Public Holidays 2025
- Founding Day (January 1)
- Lunar New Year (January 25–February 2)
- Peace Memorial Day (February 28 – March 2)
- Children’s Day and Qing Ming Festival (April 3 – 6)
- Labor Day (May 1)
- Dragon Boat Festival (May 30 – June 1)
- Mid-Autumn Festival (October 4 – October 6)
- National Day (October 10 – October 12)
Note: Public holidays falling on weekends are generally moved to a weekday.
Sick Leave
- Up to 30 days annually for non-hospitalized illness.
- Up to 12 months if hospitalized.
Parental Leave
- Up to 2 years until the child turns three.
Other Leaves
- Maternity Leave: 8 weeks paid
- Paternity Leave: 7 days paid
- Bereavement Leave: 3–8 days paid
- Marriage Leave: 8 days paid
- Personal Leave: Up to 14 days unpaid annually
📝 Ending Employment
Termination Process
- Termination must follow strict legal grounds unless by mutual agreement.
- Common grounds include business downsizing, operational changes, or employee incapacity.
Notice Requirements
| Service Length | Required Notice |
|---|---|
| 3 months to 1 year | 10 days |
| 1 year to 3 years | 20 days |
| Over 3 years | 30 days |
Employees are entitled to job-search leave during the notice period.
Severance Pay
- New System (Labor Pension Act): 0.5 month salary per year of service (up to 6 months total).
- Old System (Labor Standards Act): 1 month salary per year of service.
Probation Period
- No legal maximum; typically set at up to 3 months by agreement.
🌟 Why Build Your Team in Taiwan?
Taiwan offers companies a dynamic, tech-savvy workforce with strong labor protections and a highly efficient payroll system. Whether you’re hiring one remote employee or building an entire regional hub, Taiwan’s business-friendly framework supports sustainable growth. EOR allows hiring in Taiwan quick and fully compliant. 聯絡我們 to share your plan and let us work out the best plan for you.
