Understanding Employment Norms in Taiwan: A Comprehensive Guide
Tarmack LogoRequest a demo
HP Top Banner

Hiring Talent And Managing Payroll In Taiwan

Get Started

Hiring in Taiwan? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Taiwan.

Employment Norms in Taiwan

Taiwan is an island country in Eastern Asia. The Labor Standard Acts oversee the rules and regulations of employment in Taiwan. Businesses need to have a local presence for hiring employees. However, companies can hire employees without opening a local entity. The labor laws here are flexible for hiring purposes. Taiwan is one of the best choices for business expansions in the Asia Pacific region.

General Information:

  • Taiwan's currency is New Taiwan Dollar (TWD).
  • Taipei is the capital of Taiwan.
  • Mandarin Chinese is the official language, and other languages are Taiwanese, and Hakka. Documentation can be in Mandarin Chinese. The translation of documents into other languages and vice-versa is also available.
  • As of 2022, the GDP of Taiwan was reported to be 1564.23 billion USD.
The Labor Standard Act provides employees with health and social benefits. It regulates wages, work hours, leaves, and other employment entities.
Taiwan map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working Hours and Overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


The Labor Standard Laws govern the employment agreements in Taiwan. The employment agreements can be in oral or written format. The written agreement must be in the official Taiwanese language i.e. Mandarin Chinese or Taiwanese Hakka. If the employee asks for a translation it may be provided. There are mainly two types of employment contracts 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.
Onboarding Process

Onboarding Process

The onboarding process in Taiwan is just like any other country. The hiring process may take a few days. It has the following steps:
  • A job description is prepared by the HR team if there is a vacancy in the company.
  • The description is uploaded on the official site of the company. It is uploaded on other platforms like LinkedIn.
  • The employer may choose to publish the job description in local newspapers and magazines.
  • Candidates apply for the job by proving their eligibility. They are further shortlisted based on rounds of screenings and interviews.
  • Final shortlisted candidates then negotiate their terms and conditions with the employer. The candidate is hired as an employee after a mutual agreement between the employer and the candidate.


Taiwan has mainly two types of visas:
  • 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.

Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services

Learn More
Minimum Wage

Minimum Wage

The minimum wage is governed by Labor Standard Laws. The minimum wage in Taiwan is legally fixed at around TWD 26400 per month.
Payroll Cycle

Payroll Cycle

The payroll cycle in Taiwan is on monthly basis. There are no legal provisions for getting weekly or bi-weekly pay, although it depends on the employer.
Annual Bonus

Annual Bonus

There is no legal provision for an annual bonus in Taiwan. However, the annual bonus is a common practice in Taiwan. The 13th salary is usually paid during the lunar new year in Taiwan.
Health Benefits

Health Benefits

  • 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

Working Hours and Overtime

  • 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.


Sick Leave

There are two types of sick leaves in Taiwan according to the Labor Laws. These are:
  • Regular sick leave - An employee is entitled to 30 days of paid leave. The employer has to pay 50% of the salary during the regular sick leave.
  • Serious sick leave - This leave is given in case an employee is hospitalized for a serious health condition. An employee can take 1 year of leave every 2 years. It is an unpaid leave

Maternity leaves

  • A pregnant female employee is entitled to 8 weeks of paid maternity leave in Taiwan, paid by the employer.
  • The employer must pay 100% of the salary if the female employee has worked more than 6 months. In case of work duration below 6 months, 50% salary is paid.
  • Additional 5-7 days of leave is given for prenatal check-ups.

Paternity Leave

  • A male employee is entitled to 7 days of parental leave in Taiwan. The employer has to pay 100% of the salary.

Annual leaves

An employee is entitled to paid annual leave in Taiwan. The annual leave depends on the tenure of work of the employee
  • 6 months of employment - paid leave of 3 days
  • 1 year of employment - paid leave of 7 days
  • 2 years of employment - paid leave of 10 days
  • 3 years of employment - paid leave of 14 days
  • 5 years of employment - paid leave of15 days
  • 10+ years of employment - 1 additional day is given every year, the maximum annual leave is 30 days.

Parental leaves

  • Parental leaves are unpaid in Taiwan. Either of the parent is allowed to take parental leave and decide how to divide the time. Parental leaves are for 2 years.

Other leaves

  • Bereavement leave: Employees can take 8 days of paid leave in case of the death of their spouse or parent. Off of 6 days is granted in case of death of a parent-in-law, grandparent, or child. In case the grandparent-in-law or sibling of the employee dies, they can avail 3 days off.
  • Personal leave: 14 days of unpaid leave is granted to the employees for their work.
  • Marriage: 8 days of paid leave is given to the employees for their wedding.
  • Leave for civic duty: To fulfill their civil obligations, employees can take the paid time. Leaves taken for jury duty or military service are termed civic duty leaves.

Public Holidays (for the Calendar year 2023)

  • Republic day (1st January)
  • Republic day (2nd January)
  • Chinese New year's eve (20th January)
  • Chinese New year's eve (21st January)
  • Chinese New year (22nd January)
  • Spring Festival holiday (23rd January)
  • Spring Festival holiday (24th January)
  • Spring Festival holiday (25th January)
  • Spring Festival holiday (26th January)
  • Spring Festival holiday (27th January)
  • Peace Memorial Day (28th February)
  • Children's day (4th April)
  • Tomb-sweeping day (5th April)
  • Labor Day (1st May)
  • Dragon Boat Festival (22nd June)
  • Mid-Autumn Festival (29th September)
  • National Day/Double Tenth Day (10th October)

If you structure your global talent acquisition strategy well, you will definitely enhance your talent quality and availability through a distributed workforce. Tarmack offers end to end recruiting services to help you achieve this.

Schedule Consultation
Social Security

Social Security

Every employee is entitled to social security in Taiwan. The employer and employees contribute to the social security fund. The employer has to contribute 12.15% to the social security fund while the employee contributes 3.61%.
Taxes for Employers

Taxes for Employers

According to the Labor Standard Act taxes are levied on employers in Taiwan. These taxes include:
  • 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.

Did you know that as a part of the Employer of Record service, Tarmack offers global payroll across 100+ countries? Not just that, we even offer this global payroll service on a standalone basis. So if you're looking for a payroll provider for one or more countries, you're at the right place.

Learn More
Taxes for Employees

Taxes for Employees

The Labour Standard Laws impose taxes on employees in Taiwan. Every employee has to pay taxes that include:
  • Labor Insurance contribution - 10.5%
  • Health Insurance - 5.17%
  • Employment Insurance - 1%
  • An income tax is also levied on every employee ranging from 5% to 40%. A higher income tax rate is imposed on a higher salary.
    • NTD 560,000: 5%
    • NTD 560,001 - NTD 1,260,000: 12%
    • NTD 1,260,001 - NTD 2,520,000: 20%
    • NTD 2,520,001 - NTD 4,720,000: 30%
    • Above NTD 4,720,001: 40%


The probationary period in Taiwan is usually 3 to 6 months. The duration of the probation can be decided between the employer and the employee.

Ready to convert your contractor to a full time employee?

Every now and then, that contractor you hired does such a good job that you want to hire them as a full time employee. Convert such contractors into your full time employees by using Tarmack's Employer of Record service. Doesn't matter where the contractor is. Our service covers 150+ countries around the globe!

Talk To Us


  • 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

Severance Pay

  • 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

Employees or Contractors

  • 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.
Final Words

Final Words

Taiwan is a booming economy in Eastern Asia. Its flexible labor laws make it a perfect choice for expanding business. Those who are willing to expand their business in Taiwan must know the norms followed by the country, to ensure that they have a smooth business experience.

A truly global HR platform with everything you need to build, grow & manage a global team.

  • bestTalentIdentifying & recruiting the best talent
  • payrollPayroll with full compliance across 100+ countries
  • agreementsEmployment agreements as per local laws
  • contractorContractor invoices & time management
  • onboardingSmooth remote onboarding of employees
  • immigrationImmigration & mobility services around the world
Find Out More