Taiwan
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Taiwan
Everything you need to know about payroll, benefits & hiring top talent in Taiwan
Currency
New Taiwan Dollar (TWD)
Salary payment frequency
Monthly
Capital
Taipei City
Time Zone
GMT +8:00
Official Languages
Mandarin Chinese
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- Taiwan, officially known as the Republic of China, is an island nation in the western Pacific Ocean that lies approximately 160km (100 miles) off the coast of southeastern China (People’s Republic of China)
- It spans an area of 36 197 km² (13 976 mi²) and has a population of approximately 23.57 million
- Taiwan is a developed country, with its export-centered, industrial economy ranking 21st by nominal GDP (2021) and 19th by PPP (2021)
- It ranks highly in terms of health care, education, human development, as well as political and civil freedoms
Why Employ In Taiwan?
- The main exports from Taiwan are electrical machinery, electrical equipment, computers, plastics, vehicles, iron and steel
- 11.62 % of the population is between the ages of 15 and 24 years, with 45.51% of the population being between the ages of 25 and 54. Taiwan has fairly mature population, making it a favourable country to hire more experienced employees
Overview of the Labour Law
- The Labor Standards Act is the main source of employment law in Taiwan. It regulates workers’ rights as well as the minimum terms and conditions of employment for most industries
- The Act applies to foreign nationals working in Taiwan as well as employees working for employers who are subject to Taiwanese labour laws
- Collective bargaining agreements generally take place at the company level, but it may occur at industry level
- Taiwan make provision for unions and all employees have the right to join a trade union
- Taiwanese employment laws provides protection for both the employers and employees
Fun Country Facts
- Instead of having garbage bins in the streets, garbage trucks drive around Taiwan collecting garbage. The trucks play Beethoven’s Für Elise to prompt people to bring their garbage to the truck
- The number 4 is considered unlucky and many buildings such as hospitals don’t have a 4th floor
- It takes about eight hours to drive around the entire island of Taiwan
Why Use Playroll Services For Taiwan?
- Employing in Taiwan requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Taiwan
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employment Insurance Program
Calculated on total monthly salary. Calculated on a maximum salary of TWD 45,800.00
0.70%
Labour Pension Program
Calculated on total monthly salary. Calculated on a maximum salary of TWD 150,000.00
0.60%
National Health Insurance Program (NHIP)
Supplementary Insurance Premium
Formula to calculate Supplementary Insurance Premium:
National Health Insurance premium
Formula used to calculate National Health Insurance Premium:
- Salary basis X insurance premium rate X contribution ratio X (1+number of dependents, maximum of 3)
- The insurance premium rate since 01/01/2021 is 5.17%. The employee contribution ratio is 60%.
Supplementary Insurance Premium
Formula to calculate Supplementary Insurance Premium:
- (Total salary paid monthly by employer – the total combined “salary basis” reported to the NHIA for the organization’s employees) x 2.11%
- The supplementary insurance premium rate since 01/01/2021 is 2.11%
Arrear Wage Payment Fund
Calculated on total insured wages
0.025%
Labour Insurance Program (LIP)
Ordinary Accident Cover
7.35%
Calculated on monthly salary. Calculated on a maximum salary of TWD 45,800.00
Occupational Accident Cover
Varies based on industry
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Insurance Program
Calculated on total monthly salary. Calculated on a maximum salary of TWD 45,800.00
0.20%
Labour Pension Program
Optional contribution
0.00 -6.00%
National Health Insurance Program (NHIP)
National Health Insurance premium
Formula used to calculate National Health Insurance Premium:
- Salary basis X insurance premium rate X contribution ratio X (1+number of dependents, maximum of 3)
- The insurance premium rate since 01/01/2021 is 5.17%. The employee contribution ratio is 30%.
Supplementary Insurance premium
Formula to calculate Supplementary Insurance Premium:
- When bonuses/incentives four times the insured’s monthly salary basis (refer below), the supplementary premium is calculated based on the full amount of income. If it exceeds the upper limit for income subject to the supplementary premium, then the upper limit amount is used to calculate the premium.
- The supplementary insurance premium rate since 01/01/2021 is 2.11%.
- The upper limit on which premiums are collected is TWD10 million more than four times the salary basis for that month, on an accumulated basis.
- Payable when employees receive extra income, e.g. on bonuses received during the year that exceed four times the employee’s monthly salary basis.
Labour Insurance Program (LIP)
Calculated on monthly salary. Calculated on a maximum salary of TWD 45,800.00
Ordinary Accident Cover
2.10%
Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
0.00 – 540,000.00
5.00%
540,001.00 – 1,210,000.00
12.00%
1,210,001.00 – 2,420,000.00
20.00%
2,420,001.00 – 4,530,000.00
30.00%
4,530,001.00 or more
40.00%
Employment Terms
General
Minimum Wage
- TWD 24,000 per month
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Minimum 30 minute meal interval (after having worked for 4 continuous hours)
- Typical working hours start at 08h00 and end between 17h00, Monday to Friday
Overtime
- Maximum of 4 overtime hours per day and 48 hours per month
Notice Period
- Employed between 3 months and 1 year- 10 days’ notice
- Employed between 1 and 3 years- 20 days’ notice
- Employed for 3 or more years- 30 days’ notice
Severance Pay
- 50% of the employee’s average monthly wage, up to a maximum of six month’s pay, for each year of service
- Employees who have worked for less than a year will be entitled to severance pay in proportion to their months of service, with a fraction of a month deemed equal to one month
Probation Period
- There is no statutory probation period
- Employees can expect a probation period of 1 month
Bonus
- There is no statutory bonus
- It is common provide contractual and discretionary bonuses
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 1st – Republic Day
- January 31st – February 4th – Chinese New Year
- February 28th – 228 Peace Memorial Day
- April 4th – Children’s Day Holiday
- April 5th – Children’s Day
- April 5th – Qing Ming Festival
- May 1st – Labour Day (public holiday for private sector)
- June 3rd – Dragon Boat Festival
- September 9th – Mid-Autumn Festival Holiday
- September 10th – Mid-Autumn Festival
- October 10th – ROC National Day
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Employed between 6 months and 1 year- 3 days per year
- Employed between 1 and 2 years- 7 days per year
- Employed between 2 and 3 years- 10 days per year
- Employed between 3 and 5 years- 14 days per year
- Employed between 5 and 10 years- 15 days per year
1 additional day is granted for each year of service over 10 years, up to a maximum of 30 days
Sick Leave
- Paid leave
- Paid by employer
- Hospitalised leave- minimum 30 days per year
- Non-hospitalised leave- maximum 1 year per every 2 years
Maternity Leave
- Paid leave
- Paid by employer
- Employed between 0 and 6 months- minimum 8 weeks, 50% pay
- Employed for 6 months or more- minimum 8 weeks, 100% pay
Paternity Leave
- Paid leave
- Paid by employer
- Minimum of 5 days
Parental Leave
- Unpaid leave
- Minimum of 2 years
Bereavement Leave
- Paid leave
- Paid by employer
- 8 days- death of parent, foster-parent, step-parent, spouse
- 6 days- death of grand-parent, son or daughter, parent of spouse, foster-parent or step-parent of spouse
- 3 days- death of great-grandparent, brother or sister, grand-parent of spouse
Family Care Leave
- Paid leave
- Paid by employer
- Maximum 7 days per year
Personal Emergency Leave
- Unpaid leave
- Maximum 14 days per year
Wedding Leave
- Paid leave
- Maximum 8 days
- Any days taken in excess of 8 days will be unpaid leave
Start hiring in Taiwan today!