Employer of Record in Taiwan: Hire, Manage, and Pay Talent Seamlessly

Agreements in Taiwan

• Indefinite or open-ended contract - A contract without any fixed expiry period is called an indefinite contract. It is usually for continuous work. This type of contract is widely used for hiring full-time employees. The indefinite contract can be terminated by mutual agreement.
• Definite or fixed-term contract - A contract with a fixed end date is said to be a definite or fixed contract. If an employee keeps working even after the term ends, the contract will be treated as an indefinite contract. A definite contract in Taiwan should not exceed 90 days. If the contract term exceeds 90 days it is considered an indefinite contract.

Visa in Taiwan

• Short-term Visa- It is also called Taiwan Visitor Visa. It is granted for shorter stays of up to 90 days. It is mainly given for tourism, medical care, business invites, and other purposes.
• Long-term Visa- It is known as Taiwan Residence Visa. It is issued for longer stays that are more than 90 days. This type of visa is issued to students, workers, and others who intend to stay longer. The Taiwan Residence Visa is issued to those who want to stay in the country.

Minimum Wage in Taiwan

Annual Bonus in Taiwan

Health Benefits in Taiwan

• The employee's health and safety are the employer's responsibility. Employers have to maintain healthy working conditions.
• An employee is obliged to declare health conditions.

Working Hours and Overtime in Taiwan

• Work hours: The working hours in Taiwan are restricted to 8 hours per day. An employee has to work over 40 hours a week. The regular working week is of 5 days from Monday to Friday.
• Break: Every employee is entitled to take an unpaid break of 30 minutes. This break is taken after 4 hours of continuous work. The break can be rescheduled according to the nature of the work.
• Overtime: The overtime hours in Taiwan must not exceed 4 hours per day. The employer has to pay 134% of the regular hourly rate for the first 2 hours of work. After 2 hours the employer has to pay 167% of the regular salary. For those who work on rest days are paid 234% for the first 2 hours of their hourly rate and 267% for the next 10 hours of employees' hourly wage. The employer has to pay 200% of the regular salary for overtime on public holidays or regular or annual leave.

Leaves in Taiwan

Social Security in Taiwan

Taxes for Employers in Taiwan

• Labor Insurance - 10.5%
• Employment Insurance - 1%
• Pension Fund - 6%
• Health Insurance - 5.17%
• Accidental Insurance - 0.20%
• Overdue Wages - 0.025%
• A corporate tax of 20% is levied on companies with annual income over 120,000 TWD.

Probation in Taiwan

Termination in Taiwan

• An employer must provide a written notice stating the reason for termination.
• The notice period depends on the tenure of work of the employee.

Severance Pay in Taiwan

• An employee who joined before 2005 is entitled to 1 month's salary as severance pay.
• An employee who joined after 2005 will get half a month's salary for every year of employment.

Employees or Contractors in Taiwan

• A person who works for a company and gets paid is an employee.
• An organization that hires workers or employees is a contractor or employer.
• A penalty is imposed on an employer found guilty of misclassification of an employee as a contractor.
• A civil lawsuit can be filed against an employer if found guilty of the misclassification of an employee.