Taiwan offers a highly educated, tech-fluent workforce and a reputation for diligence that has made it the manufacturing heart of the global semiconductor industry. Work culture in Taiwan tends to be loyal, hierarchical, and quality-driven, with employees who value stability and long tenure. At the same time, Taiwan's employment law is protective and prescriptive. Wages, social insurance, working hours, and termination are all tightly regulated. This guide walks through the minimum wage in Taiwan, payroll obligations, statutory benefits, leave, and the practical steps for hiring a Taiwanese national.
Key Facts About Employment in Taiwan
Information Category | Details |
Minimum Wage in Taiwan | NT$29,500 per month. |
Standard Workweek | 40 hours standard. |
Payroll Frequency | At least once a month. |
Fiscal Year | Calendar year (January-December). |
Main Employment Laws | Labor Standards Act Labor Pension Act Gender Equality in Employment Act. |
Employment Contracts in Taiwan
Employment law in Taiwan recognizes two principal categories of contract, and choosing the right one matters because the default is strongly weighted toward permanent employment.
- A non-fixed-term contract is the standard, open-ended arrangement that most employees in Taiwan hold, and it carries full statutory protection.
- A fixed-term contract is permitted only for genuinely temporary, short-term, seasonal, or project-based work, and courts may treat it as an indefinite contract if it is repeatedly renewed or the work is in fact continuous.
Temporary or dispatch arrangements exist for short assignments, but they remain subject to the same minimum standards.
A compliant written contract should be drafted in Chinese or in a bilingual format, and it must clearly set out the mandatory terms. These include the job title and scope of duties, the salary structure and the regular pay date, the agreed working hours and rest days, and the employee's leave entitlements. The contract should also state any probationary period, the applicable notice period, and severance provisions, along with confirmation that the employee will be enrolled in labor insurance, national health insurance, and the labor pension. While the Labor Standards Act does not formally regulate probation, a probationary period of up to three months is common in practice. Any clause that reduces an employee's statutory rights below the legal floor is void.
Payroll, Taxes, and Social Security in Taiwan
Running payroll in Taiwan means budgeting well beyond gross salary, because employers carry a substantial share of mandatory social insurance. Contributions are calculated against graded salary tables, and several have monthly ceilings.
Employer Contributions
Contribution Type | Rate | Notes |
Labor Insurance | Approx. 70% of an ~11.5% total premium (≈ 8.05%) | Insured-salary cap of NT$45,800 per month |
National Health Insurance | Approx. 4.84% (60% share, adjusted for an average 1.56 dependents) | Universal healthcare coverage |
Labor Pension | At least 6% of monthly salary | Paid into the employee's individual account; salary cap NT$150,000 |
Employment Insurance | Roughly 0.7% (employer share) | Funds unemployment and training benefits |
Occupational Accident Insurance | 0.11% to 0.93% | Rate varies by industry risk level |
Supplementary NHI premium | 2.11% on bonuses and irregular income | A common compliance trap for foreign payers |
Employee Contributions
Contribution Type | Rate | Notes |
Labor Insurance | Approx. 20% of the premium (≈ 2.3%) | Deducted from wages |
National Health Insurance | Approx. 1.55% | Deducted from wages |
Labor Pension (voluntary) | Up to 6% of salary | Optional, tax-deductible |
Income Tax Brackets
Taxable Income (TWD) | Tax Rate |
0 – 590,000 | 5% |
590,001 – 1,330,000 | 12% |
1,330,001 – 2,660,000 | 20% |
2,660,001 – 4,980,000 | 30% |
Over 4,980,000 | 40% |
Non-residents who stay fewer than 183 days face a flat 18% withholding on Taiwan-sourced salary. A notable incentive exists for qualified foreign special professionals on the Employment Gold Card, who may exclude half of their salary income above NT$3 million from tax for several years.
Compensation & Benefits in Taiwan
Beyond the minimum wage in Taiwan, employees expect a recognizable package of statutory protections and customary extras. The table below outlines the core elements.
Benefit Type | Details |
Health insurance | Mandatory enrollment in National Health Insurance |
Pension | Employer contributes at least 6% of salary to the labor pension |
Year-end / 13th-month bonus | Not legally mandated, but a customary Lunar New Year bonus of one to two months' salary is widely expected |
Allowances | Meal and transport allowances are common and often built into pay |
Performance bonuses | Frequently used to attract talent in the competitive tech sector |
Working Hours and Overtime in Taiwan
Working time in Taiwan is governed by firm statutory limits, and overtime carries premium pay that cannot be waived in advance.
Item | Rule |
Standard hours | 8 hours per day, 40 hours per week |
Daily maximum with overtime | 12 hours, including overtime |
Overtime cap | 46 hours per month, extendable to 54 hours with a union or labor-management agreement |
Overtime pay (first 2 hours) | At least 1.34 times the regular hourly rate |
Overtime pay (beyond 2 hours) | At least 1.67 times the regular hourly rate |
Rest days | One mandatory and one flexible rest day every seven days |
Breaks | At least 30 minutes after four continuous hours of work |
Leave and Statutory Time Off in Taiwan
Leave entitlements in Taiwan are generous and accrue with seniority. Employers must track them carefully, because unused annual leave generally must be paid out at year-end.
Leave type | Details |
Annual leave: 6 months to under 1 year | 3 days |
Annual leave: 1 to under 2 years | 7 days |
Annual leave: 2 to under 3 years | 10 days |
Annual leave: 3 to under 5 years | 14 days |
Annual leave: 5 to under 10 years | 15 days |
Annual leave: 10 years and beyond | One additional day per year, up to a maximum of 30 days |
Sick leave | Up to 30 days per year at 50% pay; hospitalization allows up to one year within a two-year period |
Maternity leave | 8 weeks fully paid with at least six months of service, otherwise at half pay |
Paternity/pregnancy check-up leave | 7 days paid |
Parental leave | Unpaid, up to two years until the child turns three, with an allowance of 80% of insured's salary for six months |
Menstrual leave | One day per month |
Marriage leave | 8 days paid |
Bereavement leave | 3 to 8 days, depending on the relationship |
Family care leave | 7 days per year, and from 2026, it may be taken in hourly increments |
Taiwan observes the following public holidays, including the three newly recognized holidays (Teachers' Day, Retrocession Day, and Constitution Day) and Labor Day, which now applies to all employees:
- Founding Day of the Republic of China and New Year's Day
- Lunar New Year holiday
- Peace Memorial Day, the 228 commemoration
- Children's Day
- Tomb-Sweeping Day, Qingming Festival
- Labor Day
- Dragon Boat Festival
- Mid-Autumn Festival
- Teachers' Day, Confucius' Birthday
- National Day, Double Tenth
- Taiwan Retrocession Day
- Constitution Day
Hiring and Onboarding Process in Taiwan
- Choose your hiring model first, deciding between establishing a Taiwanese entity and engaging an Employer of Record (EOR).
- Register the business and the employee with the National Taxation Bureau, the Bureau of Labor Insurance, and the National Health Insurance Administration.
- Issue a written contract and enroll the employee in labor insurance, health insurance, employment insurance, and the labor pension from the first day of work.
- Collect onboarding documents, including national ID details, bank account information, and the salary and dependent tax declaration.
- For a strong start, prepare a structured orientation, clarify reporting lines across time zones, and confirm Lunar New Year bonus expectations early.
Termination & Notice Periods in Taiwan
- An employer may terminate with advance notice only for statutory grounds under Article 11, including closure or transfer, operating losses or business contraction, force majeure suspension for more than one month, a change in business nature with no suitable reassignment, or a worker being confirmed unable to perform the work.
- The minimum notice period is 10 days for service of three months to under one year, 20 days for one to three years, and 30 days for more than three years.
- Pay in lieu of notice is permitted when the employer does not provide the full notice period.
- For employees under the current pension system, severance equals half a month of average wages for each full year of service, capped at six months of wages; employees who began before July 2005 may instead receive one month per year under the older formula.
- Employees on maternity leave or recovering from a work injury enjoy heightened protection from dismissal, so terminations in these situations carry extra legal risk.
Useful Resources
- National Health Insurance Administration
- Ministry of Finance eTax Portal
- Laws & Regulations Database of the Republic of China
Disclaimer: This article is provided for informational purposes only and should not be relied on as legal advice or used as a substitute for advice from qualified legal counsel.
