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How to hire and pay employees in Taiwan
Slasify
Jun 19, 2025
| Key Takeaways |
|---|
| 1 The minimum wage is TWD 29,500 a month, or TWD 196 an hour, effective January 1, 2026. |
| 2 Employer contributions add 19.7% on top of salary at the minimum wage and 17.8% at TWD 60,000 a month, falling as pay rises because each scheme stops at its own ceiling. Since January 1, 2026, the 6% labor pension also covers foreign professionals in professional work, but not migrant workers in blue-collar roles. |
| 3 There is no at-will termination in Taiwan. Dismissal requires statutory grounds under the Labor Standards Act and, except for misconduct, 10 to 30 days' notice depending on length of service. |
| 4 Taiwanese severance is half a month's average wage for each year of service under the current pension system, capped at six months' pay. It is due within 30 days of termination and is not owed on a dismissal for misconduct. |
| 5 Taiwan has 16 paid public holidays in 2026. |
Discover the global hiring and employment landscape in Taiwan. It offers an exceptional talent pool and strong access to the Asia-Pacific (APAC) market. With robust economic stability and a thriving meetings, incentives, conferences, and exhibitions (MICE) industry, Taiwan is worth a look for your business expansion.
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 610,000 | 5 |
| 610,001–1,380,000 | 12 |
| 1,380,001–2,770,000 | 20 |
| 2,770,001–5,190,000 | 30 |
| Over 5,190,000 | 40 |
Local Taxes
There are no local taxes on employment income in Taiwan.
Employer Costs
An employer in Taiwan pays six statutory charges on top of salary. Five are social insurance and pension contributions; the sixth is a small levy that arrives on the same bill and is easy to miss. Together they add 19.7% at the minimum wage and 17.8% at TWD 60,000 a month, and the share falls as pay rises because every scheme stops at its own ceiling.
One rule governs all of it. Contributions are not charged on the salary you pay. They are charged on an insured amount, which is the salary rounded up into a bracket on a government grading table, and each scheme uses a different table with a different ceiling. Getting the bracket right is most of getting the cost right.
The tables are reissued every January. All four grading tables and the health insurance contribution table were reissued with effect from January 1, 2026. The graded rows of the labor insurance, occupational accident, and health insurance tables start at the minimum wage, so all three move whenever it does. The pension table is the exception: its rows start at TWD 1,500. Labor insurance also carries lower amounts in the notes to its own table, for part-time workers, trainees, and sheltered employment, and a worker paid below the minimum wage is declared on those rather than on the first grade. Budget on the basis that these figures change on January 1 each year. The occupational accident rate table is the exception: it is revised every three years, and the one in force was issued on November 7, 2024.
What the employer pays
Every rate below was read on the issuing agency's own page on September 23, 2026.
| Cost | Rate | Base, cap or bracket | In force from | Official source |
|---|---|---|---|---|
| Labor insurance (ordinary accident) | 8.05% of the insured salary | Insured salary runs from TWD 29,500 to a ceiling of TWD 45,800, in 11 grades. The rate is 70% of the 11.5% ordinary-accident rate; the employee pays 20% and the government 10%. | January 1, 2026 | Bureau of Labor Insurance, Labor Insurance Insured Salary Grading Table, Premium Contribution Amount Table and Labor Insurance Act, Articles 13 and 15 |
| Employment insurance | 0.70% of the insured salary | Same TWD 45,800 ceiling. The rate is 70% of the 1% employment insurance rate. Not charged for a migrant worker, for an employee aged 65 or over, or for an employee under 15, which are three of the exclusions the Bureau of Labor Insurance lists on its own contribution page. A foreign, mainland Chinese, Hong Kong, or Macau national married to a Taiwanese national with household registration, and lawfully resident and working, is covered. | January 1, 2026 | Bureau of Labor Insurance, Premium Contribution Amount Table |
| Occupational accident insurance | 0.12% to 0.96% of the insured salary, by industry | A separate insured salary table running from TWD 29,500 to a ceiling of TWD 72,800, in 21 grades. The rate is an industry accident rate of 0.05% to 0.89% plus a flat 0.07% for commuting accidents. The employer pays all of it. | Table January 1, 2026; rates January 1, 2025 | Bureau of Labor Insurance, Occupational Accident Insurance Insured Salary Grading Table, Industry Rate Table and Labor Occupational Accident Insurance and Protection Act, Articles 16 and 19 |
| Labor pension | 6% of the monthly contribution wage | A third table, running from TWD 1,500 to a ceiling of TWD 150,000, in 62 grades. Six percent is the statutory minimum, not a default the employer can lower. | January 1, 2026 | Bureau of Labor Insurance, Monthly Contribution Wage Grading Table and Labor Pension Act, Article 14 |
| National health insurance | 4.839% of the insured amount (5.17% × 60% × 1.56) | A fourth table, running from TWD 29,500 to a ceiling of TWD 313,000, in 58 grades. The employer pays 60% of the 5.17% premium for the employee plus an average dependant count of 0.56, so 1.56 people in total. That multiplier is fixed: the employer pays the same whether the employee has no dependants or four. | January 1, 2026 | National Health Insurance Administration, employer contribution table and bracket table; rate and multiplier on the Chinese edition of the contribution table |
| Wage arrears payment fund | 0.025% of the insured salary | Charged on the labor insurance insured salary, so the same TWD 45,800 ceiling. Employer pays all of it. Billed together with the labor insurance premium, which is why it is easy to miss. | In force | Bureau of Labor Insurance, how to contribute to the fund |
Three notes on the table above.
- The occupational accident rate depends on what the business does. Computer programming, information services, finance, education, and healthcare sit at the 0.12% floor. Professional and technical services pay 0.15%, wholesale 0.19%, building construction 0.57%, and mining 0.96%. An employer with 50 or more insured staff also gets the industry part of that rate re-rated each year against its own three-year claims record.
- There is a second health insurance charge on the employer. Each month the employer owes 2.11% of the difference between the total salary it paid and the total of its employees' insured amounts. In an ordinary month that difference is usually nil, because insured amounts round up. It bites when a bonus is paid, and on any pay above the TWD 313,000 ceiling. See the supplementary premium formula.
- Foreign professionals are in the 6% pension from January 1, 2026. Article 24 of the Act for the Recruitment and Employment of Foreign Professionals puts foreign professionals and foreign specialist professionals doing professional work into the Labor Pension Act system, and the employer must register them. Only someone already employed at the same company before that date could opt out, in writing, and that window closed on June 30, 2026. Migrant workers in blue-collar roles remain outside the scheme. Employment insurance is different again: it reaches a foreign professional only once permanent residence is approved.
What the employee pays
These come out of the employee's pay, so they are not an employer cost. They are here because payroll has to withhold them.
| Contribution rate | Contribution base | |
|---|---|---|
| Labor insurance (ordinary accident) | 2.3% | Up to TWD 45,800 |
| Employment insurance | 0.2% | Up to TWD 45,800 |
| National health insurance | 1.551% × (1 + n) | Up to TWD 313,000 |
For national health insurance, n is the number of dependants the employee registers, capped at 3. An employee also pays 2.11% on the part of a year's bonuses that exceeds four times the current month's insured amount, withheld at source.
What one hire costs: a worked example
A Taiwanese national on TWD 60,000 a month, hired by a software company, which sits at the 0.12% occupational accident rate. Each scheme puts that salary in a different bracket: labor and employment insurance are capped at TWD 45,800, while occupational accident insurance, the pension, and health insurance all use the TWD 60,800 grade that covers TWD 57,801 to TWD 60,800.
| Cost | Base used | Rate | A month |
|---|---|---|---|
| Labor insurance (ordinary accident) | TWD 45,800 (capped) | 8.05% | TWD 3,687 |
| Employment insurance | TWD 45,800 (capped) | 0.70% | TWD 321 |
| Occupational accident insurance | TWD 60,800 | 0.12% | TWD 73 |
| Labor pension | TWD 60,800 | 6% | TWD 3,648 |
| National health insurance | TWD 60,800 | 4.839% | TWD 2,942 |
| Wage arrears payment fund | TWD 45,800 (capped) | 0.025% | TWD 11 |
| Total employer contributions | 17.8% of salary | TWD 10,682 | |
| Total monthly cost of the hire | TWD 70,682 |
Twelve of those months come to TWD 848,184 in salary and contributions together. Taiwan has no statutory 13th month, but paying one at Lunar New Year is normal practice, and it is worth costing because it is not free of contributions. A TWD 60,000 bonus does not change the insured amounts, since a year-end bonus is a non-recurring payment and stays out of them, but it does trigger the employer's supplementary health insurance premium: 2.11% of TWD 59,200, or TWD 1,249. Salary, contributions, and a 13th month together come to TWD 909,433 a year, which is 26.3% on top of the TWD 720,000 of base salary.
These are per-employee figures worked from the official rates and tables. The Bureau of Labor Insurance bills an employer on its whole payroll at once, so a real invoice can differ by a few TWD in rounding.
Running six contributions across four grading tables, without a local entity, is what our Employer of Record service covers. Global Payroll does the same where you already have an entity.
How the total moves with salary
The same six costs at three salaries, on the same assumptions.
| Cost | TWD 29,500 a month | TWD 60,000 a month | TWD 150,000 a month |
|---|---|---|---|
| Labor insurance (ordinary accident) | TWD 2,375 | TWD 3,687 | TWD 3,687 |
| Employment insurance | TWD 207 | TWD 321 | TWD 321 |
| Occupational accident insurance | TWD 35 | TWD 73 | TWD 87 |
| Labor pension | TWD 1,770 | TWD 3,648 | TWD 9,000 |
| National health insurance | TWD 1,428 | TWD 2,942 | TWD 7,259 |
| Wage arrears payment fund | TWD 7 | TWD 11 | TWD 11 |
| Total a month | TWD 5,822 | TWD 10,682 | TWD 20,365 |
| As a share of salary | 19.7% | 17.8% | 13.6% |
The pension, health insurance, and occupational accident insurance all rise across the three columns. Labor insurance, employment insurance, and the wage arrears fund stop at TWD 45,800, so they are the same in the last two columns, and occupational accident insurance stops at TWD 72,800, which is why the percentage falls as pay rises. Above TWD 150,000 the pension stops too, and health insurance is the only line still moving, up to its own ceiling of TWD 313,000. On a senior salary the pension and health insurance are most of the bill.
Costs that are not monthly
- Severance. Half a month's average wage for each year of service, prorated for part years and capped at six months' pay, due within 30 days of termination. It is owed on a no-fault dismissal and not on a dismissal for misconduct (Labor Pension Act, Article 12).
- Paid leave. The 16 public holidays and the annual leave set out below are paid time, so they sit inside a monthly salary rather than on top of it. Unused annual leave has to be paid out at the end of the year unless the employee agrees to carry it over.
- Overtime. Paid at 134% of the hourly rate for the first two hours and 167% after that, as set out under Work Time Rules below.
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
Effective January 1, 2026, the minimum wage in Taiwan is set at TWD 29,500 per month.
Statutory Bonus
There is no statutory bonus in Taiwan, though it is customary to give employees their 13th month's pay during the Lunar New Year.
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 on public holidays. Taiwan has 16 paid public holidays in 2026. The list is set by the Act on Memorial Days and Holidays, which was promulgated on May 28, 2025 and restored Confucius's Birthday, Retrocession Day, and Constitution Day as days off, and added the day before Lunar New Year's Eve. Dates and the make-up days are from the Executive Yuan's 2026 government calendar.
| Holiday | Date | Observed on |
|---|---|---|
| Founding Day of the Republic of China (New Year's Day) | Thursday, January 1 | Same day |
| Day before Lunar New Year's Eve | Sunday, February 15 | Friday, February 20 |
| Lunar New Year's Eve | Monday, February 16 | Same day |
| Spring Festival, first day | Tuesday, February 17 | Same day |
| Spring Festival, second day | Wednesday, February 18 | Same day |
| Spring Festival, third day | Thursday, February 19 | Same day |
| Peace Memorial Day | Saturday, February 28 | Friday, February 27 |
| Children's Day | Saturday, April 4 | Friday, April 3 |
| Qingming Festival | Sunday, April 5 | Monday, April 6 |
| Labor Day | Friday, May 1 | Same day |
| Dragon Boat Festival | Friday, June 19 | Same day |
| Mid-Autumn Festival | Friday, September 25 | Same day |
| Confucius's Birthday and Teachers' Day | Monday, September 28 | Same day |
| National Day | Saturday, October 10 | Friday, October 9 |
| Taiwan Retrocession and Guningtou Victory Memorial Day | Sunday, October 25 | Monday, October 26 |
| Constitution Day | Friday, December 25 | Same day |
A public holiday that falls on a rest day or on the weekly regular day off must be made up. Article 23-1 of the Enforcement Rules of the Labor Standards Act requires it, and the same article puts the make-up date in the hands of the employer and the employee together, by agreement. The "Observed on" column above is the Executive Yuan calendar, which binds government agencies; most private employers follow it, but it is the agreement rather than the calendar that fixes the date. An employee required to work on a public holiday is paid double the regular rate for that day's work.
Indigenous employees are entitled to three further days off for their own community's annual ceremonies, on top of the sixteen.
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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