{"id":754,"date":"2025-04-15T15:27:55","date_gmt":"2025-04-15T07:27:55","guid":{"rendered":"https:\/\/wanchtw.com\/?p=754"},"modified":"2025-07-09T10:26:46","modified_gmt":"2025-07-09T02:26:46","slug":"understanding-employer-contributions-in-taiwan-a-guide-for-global-employers","status":"publish","type":"post","link":"https:\/\/wanchtw.com\/zh\/2025\/04\/15\/understanding-employer-contributions-in-taiwan-a-guide-for-global-employers\/","title":{"rendered":"Employer Contributions in Taiwan: A Guide for Global Employers"},"content":{"rendered":"<p class=\"gtfy-1 wp-block-paragraph\">If you&#8217;re planning to hire employees in Taiwan or expand your business through an Employer of Record (EoR), it&#8217;s important to understand the employer contribution system. This guide explains the mandatory employer contributions in Taiwan, how they are calculated, and what global employers should consider for compliance. On average, the total employer contribution adds around\u00a0<strong>13%-20% (as cap applies to different contributions)<\/strong>\u00a0to the employee\u2019s gross monthly regular salary.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading gtfy-4\">What Are Employer Contributions in Taiwan?<\/h2>\n\n\n\n<p class=\"gtfy-7 wp-block-paragraph\">Employer contributions in Taiwan refer to mandatory payments that businesses must make on behalf of their employees to various government-mandated programs. These contributions form part of the total cost of employment and are regulated under Taiwan&#8217;s Labor Standards Act and associated social insurance laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading gtfy-10\">Mandatory Employer Contributions in Taiwan<\/h2>\n\n\n\n<p class=\"gtfy-13 wp-block-paragraph\">Taiwanese employers are required to contribute to the following six statutory programs:<\/p>\n\n\n\n<h3 class=\"wp-block-heading gtfy-16\">1. Labour Insurance (\u52de\u5de5\u4fdd\u96aa) Capped at NTD 45.8k<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-22\">\n<li class=\"gtfy-19 gutenify-list-item\">Total rate: ~11.5%, shared between employer (70%), employee (20%), and government (10%)<\/li>\n\n\n\n<li class=\"gtfy-20 gutenify-list-item\">Employer share: 70% of the premium, approximately <strong>8.05%<\/strong><\/li>\n\n\n\n<li class=\"gtfy-21 gutenify-list-item\">Covers general risks including disability, death, and retirement pensions<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading gtfy-25\">2. Occupational Accident Insurance (\u8077\u696d\u707d\u5bb3\u4fdd\u96aa) Capped at 72.8k<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-32\">\n<li class=\"gtfy-28 gutenify-list-item\">Introduced under the Occupational Accident Insurance and Protection Act (2022)<\/li>\n\n\n\n<li class=\"gtfy-29 gutenify-list-item\">Employer share: <strong>0.11% to 0.93%<\/strong>, depending on the industry risk level<\/li>\n\n\n\n<li class=\"gtfy-30 gutenify-list-item\">Fully paid by the employer<\/li>\n\n\n\n<li class=\"gtfy-31 gutenify-list-item\">Covers injuries, illnesses, disability, and death resulting from work-related causes<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading gtfy-35\">3. National Health Insurance (\u5168\u6c11\u5065\u5eb7\u4fdd\u96aa) Capped at NTD 313k<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-41\">\n<li class=\"gtfy-38 gutenify-list-item\">Total rate: ~5.17%, shared between employer (60%), employee (30%), and government (10%)<\/li>\n\n\n\n<li class=\"gtfy-39 gutenify-list-item\">Employer share: 60% of the premium multiply by the average number of dependents of 1.56, equivalent to ~5.17% x 60% x 1.56 = <strong>4.84%<\/strong><\/li>\n\n\n\n<li class=\"gtfy-40 gutenify-list-item\">Provides access to Taiwan\u2019s universal healthcare system<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading gtfy-44\">4. Labour Pension (\u52de\u5de5\u9000\u4f11\u91d1) Capped at NTD 150k<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-49\">\n<li class=\"gtfy-47 gutenify-list-item\">Employer contributes <strong>6% of the employee\u2019s monthly salary<\/strong><\/li>\n\n\n\n<li class=\"gtfy-48 gutenify-list-item\">Paid into an individual pension account under the Labor Pension Act<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading gtfy-52\">5. Employment Insurance (\u5c31\u696d\u4fdd\u96aa) Capped at NTD 45.8k<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-58\">\n<li class=\"gtfy-55 gutenify-list-item\">Total rate: ~1%, shared between employer (70%), employee (20%), and government (10%)<\/li>\n\n\n\n<li class=\"gtfy-56 gutenify-list-item\">Employer share: 70% of the premium, around <strong>0.7%<\/strong><\/li>\n\n\n\n<li class=\"gtfy-57 gutenify-list-item\">Supports unemployment benefits, job training, and employment counseling<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading gtfy-61\">6. Supplementary Insurance (\u88dc\u5145\u4fdd\u96aa\u8cbb)<\/h3>\n\n\n\n<ul class=\"wp-block-list gtfy-68\">\n<li class=\"gtfy-64 gutenify-list-item\">Rate: ~2.11%<\/li>\n\n\n\n<li class=\"gtfy-65 gutenify-list-item\">Applies to irregular income such as bonuses and incentives<\/li>\n\n\n\n<li class=\"gtfy-66 gutenify-list-item\">Employers must declare and contribute when applicable thresholds are met<\/li>\n\n\n\n<li class=\"gtfy-67 gutenify-list-item\">Require withholding of the premium for the employees&#8217; contribution<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading gtfy-71\">Contributions Are Based on Salary Tiers<\/h2>\n\n\n\n<p class=\"gtfy-74 wp-block-paragraph\">All contribution amounts are calculated based on a salary classification system set by Taiwan&#8217;s labor authorities. Each employee\u2019s reported salary is matched to a designated salary tier, and contributions are calculated based on the minimum salary amount of that tier, not the employee\u2019s full actual earnings.<\/p>\n\n\n\n<p class=\"gtfy-77 wp-block-paragraph\">This means the stated employer share percentages above are <strong>minimum rates<\/strong> based on the ceiling amount within each tier<\/p>\n\n\n\n<h2 class=\"wp-block-heading gtfy-80\">Why This Matters for International Employers<\/h2>\n\n\n\n<p class=\"gtfy-83 wp-block-paragraph\">For foreign companies hiring in Taiwan, complying with employer contribution requirements is essential for:<\/p>\n\n\n\n<ul class=\"wp-block-list gtfy-89\">\n<li class=\"gtfy-86 gutenify-list-item\">Staying compliant with local labor laws<\/li>\n\n\n\n<li class=\"gtfy-87 gutenify-list-item\">Avoiding penalties for underreporting or late payments<\/li>\n\n\n\n<li class=\"gtfy-88 gutenify-list-item\">Maintaining employee satisfaction with legal benefits<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading gtfy-92\">Hire in Taiwan Without Setting Up a Local Entity<\/h2>\n\n\n\n<p class=\"gtfy-95 wp-block-paragraph\">Working with a trusted <strong><a href=\"http:\/\/wanchtw.com\/zh\/services\/\">Employer of Record (EoR) in Taiwan<\/a><\/strong> like <a href=\"https:\/\/wanchtw.com\/zh\/about\/\">\u5b8f\u624d\u6709\u9650\u516c\u53f8 <\/a>allows you to onboard and manage employees legally, while your EoR partner handles:<\/p>\n\n\n\n<ul class=\"wp-block-list gtfy-102\">\n<li class=\"gtfy-98 gutenify-list-item\">Payroll<\/li>\n\n\n\n<li class=\"gtfy-99 gutenify-list-item\">Social security contributions<\/li>\n\n\n\n<li class=\"gtfy-100 gutenify-list-item\">Tax withholdings<\/li>\n\n\n\n<li class=\"gtfy-101 gutenify-list-item\">Compliance with local employment law<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading gtfy-105\">Final Thoughts<\/h2>\n\n\n\n<p class=\"gtfy-108 wp-block-paragraph\">Understanding Taiwan&#8217;s employer contributions is key to responsible and compliant hiring. By working with a qualified EoR provider, you can simplify the process and focus on building your local team.<\/p>\n\n\n\n<p class=\"gtfy-111 wp-block-paragraph\">If you&#8217;re ready to hire in Taiwan without establishing a local entity, <a href=\"https:\/\/wanchtw.com\/zh\/about\/\">\u5b8f\u624d\u6709\u9650\u516c\u53f8 <\/a>is here to help. <a href=\"https:\/\/wanchtw.com\/zh\/contact\/\">Contact us<\/a> today to learn more about our <a href=\"https:\/\/wanchtw.com\/zh\/services\/\">EoR services<\/a> tailored to international businesses.<\/p>\n\n\n\n<p class=\"gtfy-114 wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re planning to hire employees in Taiwan or expand your business through an Employer [&hellip;]<\/p>","protected":false},"author":2,"featured_media":758,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30,28,29,31],"tags":[],"ppma_author":[27],"class_list":["post-754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliances","category-eor","category-expand_to_tw","category-taiwan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employer Contributions in Taiwan<\/title>\n<meta name=\"description\" content=\"Explains the mandatory employer contributions in Taiwan, how they are calculated, and what global employers should consider for compliance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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