Hiring Guide
Taiwan
Capital: Taipei
Currency: New Taiwan Dollar (TWD)
GDP growth rate: 2.6% annual change (2021)
Fiscal year: January 1 to December 31
Languages: Mandarin, English
Though Taiwanese labor laws are somewhat flexible, contract terms must be compatible with the relevant laws. Taiwanese employers that have more than 30 employees in Taiwan are required to register their work rules with local authorities and ensure compliance.
The following information is based on Civil Code and Labor Standards Act issued by the Laws & Regulations Database of the Republic of China (Taiwan).
Work Contract
Though Taiwanese labor laws are somewhat flexible, contract terms must be compatible with the relevant laws. Taiwanese employers that have more than 30 employees in Taiwan are required to register their work rules with local authorities and ensure compliance.
The following information is based on conditions issued by the Laws & Regulations Database of the Republic of China (Taiwan).
Mandatory contract terms
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Code of conduct
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Work location, hours & duties
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Remuneration - Salary, benefits & payment terms
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Leave & Vacation
Payroll
Wage guideline as of January 2023
Minimum wage
Monthly wage
NT$26,400 (≈ US$855)
Hourly wage
NT$176 (≈ US$5.7)
Overtime rate
First 2 hours
134% of regular rate
>2 hours
167% of regular rate
4+ additional hours
267% of regular rate
Employers must pay overtime according to this schedule.
13-months bonus
While a 13th-month bonus is not legally required, it has become customary for employers to offer them. Employers may also provide bonuses based on earnings or performance—or both.
Paid time off
In Taiwan, paid leave is determined by the years of service completed. Annual leave is accrued as follows:
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6 months to less than 1 year of employment: 3 days’ paid leave
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1 year of employment: 7 days’ paid leave
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2 years of employment: 10 days’ paid leave
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3 years of employment: 14 days’ paid leave
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5 years of employment: 15 days’ paid leave
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One additional day is provided for each year of service following the completion of 10 years (to a maximum of 30 days)
Tax
Employer Payroll Contributions
7.35%
Labour Insurance
1.00%
Employment Insurance
6.00%
Pension Fund
3.102%
Health Insurance
17.152%
Total Employment Cost
Employee Payroll Contributions
2.10%
Labour Insurance
1.00%
Employment Insurance
1.551%
Health Insurance
10.50%
Total Employee Cost
Working hours
Taiwan working week is typically from monday-friday.
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30-minute rest break every four hours - Can be rescheduled or rotated
Holidays and Breaks
Annual Holiday
In Taiwan, paid leave is determined by the years of service completed.
Annual leave is accrued as follows: ​
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6 months to less than 1 year of employment: 3 days’ paid leave
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1 year of employment: 7 days’ paid leave
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2 years of employment: 10 days’ paid leave
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3 years of employment: 14 days’ paid leave
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5 years of employment: 15 days’ paid leave
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One additional day is provided for each year of service following the completion of 10 years (to a maximum of 30 days)
Sick Leave
There are two types of sick leave in Taiwan:
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For employees who are sick but do not require hospitalization, sick leave entitlement is 30 days per year paid at 50.00% of the regular salary rate. Employer's responsibility is subjected to insurance coverage.
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Sick leave entitlement increases to twelve months when the employee is hospitalized.
Termination
Process
In Taiwan, unless you can prove the employee's misconduct justifies immediate dismissal without notice (such as misconduct), a standard procedure must be followed.
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A termination notice should be in writing and sent to the appropriate government parties.
Notice period
The following is a list of notice periods in Taiwan:
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3 months to 1 year of employment: 10 days’ notice
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1-3 years of employment: 20 days’ notice
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3 years of employment: 30 days’ notice
Severance pay
In Taiwan, severance pay is mandatory and varies according to the length of time the employment.
If the employee's contract start date is before 2005, under the Labour Standards Act he or she is entitled to one month’s salary for every year worked.
If the employee's contract start date is after 2005, he or she is entitled to severance pay of half a month’s salary for each year worked.
Probation period
The probation period is typically three months for most permanent/ definite employment.
