| Key Takeaways |
|---|
| 1. Minimum wage is TWD 28,590/month with monthly or bi-weekly payroll cycles, requiring payment at least twice monthly unless otherwise contracted. |
| 2. Progressive income tax ranges from 5% to 40% for residents, while non-residents pay a flat 18% rate on employment income. |
| 3. Employers contribute 6% to labor pension plans plus additional percentages for labor insurance (8.05%), NHI, and other mandatory social programs. |
| 4. No at-will termination exists – employers can only dismiss employees for serious misconduct or specific circumstances outlined in labor law. |
| 5. Standard work week is 40 hours maximum with overtime limited to 46 hours monthly and paid at 134–167% of regular rates. |
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Personal Income Tax
Non-residents are taxed at a flat rate of 18% on their gross employment income, whereas tax residents are subject to the following progressive tax rates:
| Taxable Income (TWD) | Progressive Tax Rate (%) |
|---|---|
| Up to 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 |
Local Taxes
Statutory Contributions
The following statutory contributions shall be calculated based on the insured salary derived from the respective employee's monthly salary as per the contribution tables published by the Bureau of Labor Insurance:
Moreover, contributions for National Health Insurance (NHI) shall be in accordance with the regulations surrounding NHI Contribution Premiums and Brackets, and include the mandatory Supplementary NHI where applicable.
Employer Contributions
| Contribution Rate | Contribution Base | |
|---|---|---|
| Labor Insurance | 8.05% | Up to TWD 45,800 |
| Unemployment Insurance | 0.7% | Up to TWD 45,800 |
| Occupational Accident Insurance | 0.12% | Up to TWD 72,800 |
| Labor Pension | 6%, unless exempted | Up to TWD 150,000 |
| NHI | 3.102% * 1.56 | Up to TWD 313,000 |
An additional Mandatory Supplementary NHI Premium is applied to employees whose salaries exceed the NHI contribution base (over TWD 313,000). This is levied at 2.11% of the employee's monthly salary in excess of the NHI contribution base.
Employee Contributions
| Contribution Rate | Contribution Base | |
|---|---|---|
| Labor Insurance | 2.3% | Up to TWD 45,800 |
| Unemployment Insurance | 0.2% | Up to TWD 45,800 |
| NHI** | 1.551% * (1 + n) | Up to TWD 313,000 |
**For the calculation of NHI contribution, the variable n refers to the number of dependents an employee has, subject to a maximum of 3 even if they actually have more dependents.
Furthermore, an additional Mandatory Supplementary NHI Premium may be levied for employees whose annual bonus exceeds 4 times their monthly salary basis for NHI. This is calculated at 2.11% of their monthly bonus or the difference between their annual bonus and 4 times their monthly salary basis for NHI, whichever is less.
Payment of Wages
Unless the employee is being paid monthly or where a different payroll cycle is agreed upon in the employment contract, wages shall be paid on a regular basis at least twice a month.
Minimum Wage
Statutory Bonus
Termination
There is no at-will termination in Taiwan. In order for the termination to be considered just, employers can only dismiss their employees in cases of serious misconduct or under other circumstances stipulated in the Labor Standards Act. These include the following:
| Serious Misconduct | Other Reasons |
|---|---|
| Misrepresenting facts during hiring that caused the employer to sustain damage | Employer's business being suspended or has been transferred |
| Committing acts of violence against or insulting the employer, colleagues or their families | Employer's business suffering operating losses or when there are business contractions |
| Being sentenced to temporary imprisonment in a final and conclusive judgment, provided that they are not granted a suspended sentence or permitted to commute the sentence to payment of a fine | Employee being made redundant due to a change in the nature of the business, provided that they cannot be re-assigned to other suitable positions |
| Breaching the labor contract or seriously violating established work rules | Business suspended for more than a month due to force majeure |
| Being absent from work, without any valid reason, for 3 consecutive days or for a total of 6 days in a month | Employee is clearly unable to perform their duties satisfactorily |
Notice Period
Employers can dismiss employees without advance notice if their employees are dismissed on the grounds of serious misconduct. Otherwise, the following notice period or payment in lieu shall be observed:
| Length of Service | Minimum Notice Period |
|---|---|
| More than 3 months, but less than 1 year | 10 days |
| More than 1 year, but less than 3 years | 20 days |
| More than 3 years | 30 days |
Employees must be granted 2 days of paid leave per week during the notice period to look for a new job.
Severance Pay
Employees who began their employment before July 1, 2005 can choose between the severance system under the Labor Standards Act or the Labor Pension Act, while those who began their employment after July 1, 2005 can only use the system under the latter Act.
| Severance under the Labor Standards Act | Severance under the Labor Pension Act |
|---|---|
| A month's average wage for each year of service | A half month's average wage for each year of service, up to a maximum of 6 months' pay |
Employees who have not completed a full year of service shall have their severance prorated according to the number of months worked, where any period of employment that is less than a month is counted as a month worked.
The only case where employees are not entitled to receive any severance upon termination is when they are rightfully dismissed without notice, i.e. when they are dismissed due to serious misconduct.
Probationary Period
There is no statutory probationary period in Taiwan.
Work Time Rules
Standard Working Hours
The regular working hours in Taiwan are subject to a maximum of 8 hours per day and 40 hours per week.
Break Period
Employees are entitled to a 30-minute break period after 4 consecutive hours of work. Moreover, female employees who are required to breastfeed their children of less than 12 months old are entitled to two additional 30-minute breastfeeding sessions per day. The time taken for breastfeeding shall be deemed as working time.
Overtime
Overtime can be conducted with the approval of a labor union or, if there is no union, the approval of a labor-management conference. Employers must adhere to their reporting obligations when requiring their employees to perform overtime work.
The total number of overtime that can be worked shall not exceed 46 hours per month. Alternatively, overtime can be calculated over a 3-month period, provided that it does not exceed 54 hours per month and 138 hours every 3 months.
In any case, total working hours in a day shall not exceed 12 hours per day.
Overtime shall be paid as follows:
| Overtime compensation | |
|---|---|
| First 2 hours of overtime | 134% of the regular hourly rate |
| Subsequent hours of overtime | 167% of the regular hourly rate. |
Weekly Rest Days
Employees are entitled to 2 paid regular days off per week. While one of these days are compulsory, the other can be used in case the employee is required to work additional hours.
Employees required to work on their rest days shall be paid overtime wages on top of the amount they are already entitled for the rest day, as follows:
| Pay rate | |
|---|---|
| First 2 hours | 134% of the regular hourly rate |
| Subsequent hours of work | 167% of the regular hourly rate |
Holiday and Leave Entitlements
Public Holidays
Employees are entitled to paid time off during public holidays. There are 22 days of public holidays in Taiwan for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day/Republic Day | January 1 |
| Chinese New Year | January 25–February 2 |
| 228 Peace Memorial Day | February 28 |
| Children’s Day | April 3–4 |
| Qing Ming Festival | April 5 |
| Labor Day | May 1 |
| Dragon Boat Festival | May 30–31 |
| Confucius’ Birthday | September 28 |
| Mid-Autumn Festival | October 6 |
| ROC National Day | October 10 |
| Taiwan Retrocession Day/Commemoration of Battle of Guningtou | October 25 |
| Constitution Day | December 25 |
If a public holiday falls on the employee's rest day, a compensatory day off is usually granted. Moreover, employees required to work on a public holiday shall be paid double their regular rate for the work performed
Annual Leave
Employees are entitled to paid annual leave, the duration of which is determined by their length of service with the employer, as follows:
| Length of Service | Annual Leave |
|---|---|
| 6 months or more, but less than 1 year | 3 days |
| 1 year or more, but less than 2 years | 7 days |
| 2 years or more, but less than 3 years | 10 days |
| 3 year or more, but less than 5 years | 14 days |
| 5 year or more, but less than 10 years | 15 days |
| Over 10 years | 1 additional day for each year of service, up to a maximum of 30 days |
Employees with over 10 years of service shall be entitled to an additional day for each year of service thereafter, up to a maximum of 30 days.
Employees with unused leave days by the end of the year has the right to be paid in lieu of those days. Alternatively, the employer and employee can come to an agreement to carry over the unused leave to the following year, and if they are still unused by the end of the second year, wages shall be paid in lieu.
Sick Leave
Employees who must receive medical service or rest on account of ordinary injury, sickness or other physical reasons are entitled to take ordinary sick leave as follows:
| Duration of Sick Leave | |
|---|---|
| Non-Hospitalized | Up to 30 days per year |
| Hospitalized | Up to 12 months per 2-year period |
The first 30 days of sick leave in the year shall be paid at 50% of the employee's regular wage. Where this is not paid or only partially paid by Labor Insurance, the employer shall make up the difference. Any sick leave taken in excess of this limit shall be unpaid.
Maternity Leave
Female employees are entitled to 8 consecutive weeks of paid maternity leave. The rate of maternity leave pay is determined by the employee's length of service.
| Length of Service | Rate of Maternity Pay |
|---|---|
| More than 6 months | 100% regular wage |
| Less than 6 months | 50% regular wage |
In the event of a miscarriage, the employee shall also be granted paid maternity leave as follows:
| Duration of Maternity Leave | |
|---|---|
| Miscarriage after 3 months of pregnancy | 4 weeks |
| Miscarriage after 2 months of pregnancy, but less than 3 months | 1 week |
| Miscarriage after less than 2 months of pregnancy | 5 days |
Maternity benefits can be covered by Labor Insurance, but any amount not covered must be supplemented by the employer to satisfy the above minimum entitlements.
Paternity Leave
Employees whose spouses are pregnant are entitled to 7 days of fully paid leave, which can be used to accompany their spouses for pregnancy checkups, during labor or after delivery. The payment for this leave shall be covered by the employer for the first 5 days, and they can apply to the central competent authority for subsidies for the remaining days.
If the leave is taken for pregnancy checkup accompaniment, it shall be taken during their spouse's gestation period, and if the leave is taken as paternity leave, it shall be taken during the 15-day window before and after the day of childbirth.
Parental Leave
Employees who have been employed for at least 6 months are entitled to take unpaid parental leave to care for their children. This leave can be taken at any time until the employee's child reaches 3 years of age, provided that the total duration of leave taken does not exceed 2 years.
Effective January 1, 2026, unpaid parental leave can be applied for by the day. Within the existing 2-year parental leave period, employees can flexibly take leave for up to 30 days.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Funeral Leave | Paid | 3–8 days | Employees are entitled to either 3 days (great-grandparent, sibling, grandparent-in-law), 6 days (grandparent, child, parent-in-law) or 8 days (parent, spouse) of leave depending on which member of their family's death the leave is taken for. |
| Pregnancy Leave | Paid | 7 days | The payment for this leave shall be covered by the employer for the first 5 days, and they can apply to the central competent authority for subsidies for the remaining days. |
| Menstrual Leave | Paid | 1 day per month | For female employees during their menstrual period. This leave is paid at 50% of the regular wage. Moreover, menstrual leave taken in excess of 3 days in a year will be taken out from the employee's sick leave entitlement. |
| Personal Leave | Unpaid | 14 days per year | - |
| Public Leave | Paid | - | This leave can be taken when the employee is required to perform public duties by law, the duration of which will vary depending on what it is they are obligated to do. |
| Wedding Leave | Paid | 8 days | - |
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