Hire in Taiwan

EOR in Taiwan

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Taiwan, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Taiwan ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Taiwan and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Taiwan

The Labor Standards Act is the fundamental labor law in Taiwan. First enacted in 1984, the act has been gradually expanded to cover almost all employees in the private sector.

Other laws that affect employment relationships are the:

• Employment Insurance Act (unemployment benefits)
• Collective Bargaining Agreement Act
• Employment Services Act (nondiscrimination, employment promotion, foreign workers)
• Gender Equality in Employment Act
• Labor Insurance Act (maternity, occupational or nonoccupational injury and illness, medical care, permanent disability, retirement, and survivor benefits)
• Labor Pension Act
• Labor Safety and Health Act
• Labor Union Law
• Occupational Accident Labor Protection Act
• Protective Act for Mass Redundancy of Employees
• Settlement of Labor Disputes Law.

Employment contracts in Taiwan

As you look to hire employees in Taiwan, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Regular work hours may not exceed eight per day or 40 per week.

With the approval of a labor union or labor-management committee, hours may be redistributed among workdays, provided that the total regular working time does not exceed 48 hours in any one week.

A worker is entitled to at least two days off every seven days. One day is regular leave and the other is a rest day. In certain industries, employers may determine the regular day off. Employees generally must have a rest period of at least 11 hours between shifts. However, employees can be asked to work 12 days in a row and work shifts with only eight hours of rest in between. Employers must get approval from the appropriate federal agencies and their employees.

Employees are entitled to a break of at least 30 minutes after working four continuous hours. The break can be rescheduled if work cannot be interrupted.

Any unexpected event or emergency can cause an employer to suspend a worker's regular weekly day off or annual leave.

The total regular work hours plus overtime cannot exceed 12 hours per day. Overtime cannot exceed 54 hours per month and 138 hours over three months.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective 2024, Taiwan’s minimum wage is NT$183 per hour and NT$27,470 per month.
• Effective 2025, Taiwan’s monthly minimum wage will increase from NT$24,470 to NT$28,590 (US$893.83) and the hourly minimum wage will increase from NT$183 to NT$190.
• Overtime must be paid based on the actual number of hours worked. Workers must be paid 1.33 times their regular hourly wage for overtime under two hours. From the third hour of overtime onwards, workers are entitled to 1.66 times their regular hourly wage.
• The overtime rates are 2.33 and 2.66 times a worker’s normal rates if asked to work on their rest day.
• An employee must be paid twice his or her usual wage for any canceled leave and compensatory time off.
• For work on a holiday, employees must be paid twice their regular rate.

As your employer of record in Taiwan, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Under the Labor Standards Act, employees not guilty of “misconduct” are entitled to an annual bonus. The law does not specify the amount of the bonus.

Though not statutorily required, employees often receive bonuses for festivals (Lunar New Year, Dragon Boat, Moon, etc.).

Termination and severance

The length of required advance notice varies depending on the length of an employee’s continuous service with the employer:

• Three months to one year service - 10 days’ notice.
• Between one year to three years’ service - 20 days’ notice.
• More than three years of service - 30 days’ notice.

Instead of notice, the employer may pay the worker full wages for the period of notice

Generally, an employee must give an employer the same length of advance notice as the employer is required and may instead of notice, pay the employer compensation in the amount of his or her full wages for the notice period.

Employee benefits and paid leave in Taiwan

When negotiating terms of an employment contract with a candidate in Taiwan, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Eight weeks’ maternity leave is mandatory for full and part-time employees.

In the event of a miscarriage, a woman is entitled to four weeks of leave if the miscarriage occurs after three months of pregnancy, one week if it occurs two to three months into the pregnancy and five days if less than two months into the pregnancy.

A female employee employed for more than six months is paid her regular wage during maternity leave. If employed for less than six months, she is paid half her regular wage. In addition, a maternity grant equal to one month’s earnings is paid following childbirth.

Pregnant employees must be granted five days of leave for pregnancy check-ups, during which regular wages must be paid.

Vacation

Employees who have worked for the same employer for at least a year are entitled to paid annual leave based on their years of service:

• Between six months to one year of service - Three days’ leave
• Over 12 months of service - Seven days’ leave
• Over two years of service - 10 days’ leave
• Over three years of service - 14 days’ leave
• Over five years of service - 15 days’ leave
• Over 10 years of service - One additional day of leave is granted up to a maximum of 30 days.

Unused annual leave may be carried forward to the following year. The carried-forward leave must be paid to employees if it is not used by the end of that year.

In an emergency, an employer can suspend a worker’s planned leave but must pay double his or her regular wages for work during that time and grant leave after the emergency has ended.

Although employees have the right to determine when to take their annual leave, employers may negotiate the timing with employees if they have urgent operational demands.

Holidays

Employees are entitled to the following national holidays in Taiwan:

• Founding Day of the Republic of China
• Peace Memory Day
• Labor Day
• Spring Festival (three days)
• Children’s Day
• Dragon Boat Festival
• Mid-Autumn Festival
• New Year’s Eve (lunar calendar)
• Tomb Sweeping Day: Qingming Festival of the Lunar calendar
• National Day

Employers can give employees paid holidays on other non-public holidays at their discretion.

Governments grant a day in lieu if a public holiday falls on a weekend. If a holiday falls on a Saturday, the deferred day off is on the preceding workday; if a holiday falls on a Sunday, the deferred day off is on the following workday. However, Chinese New Year's Eve and Chinese New Year's Day, are always deferred until the following workdays.

Sick leave

Regular sick leave may not exceed 30 days in one year. If the employee is hospitalized, he or she is entitled to unpaid sick leave of up to one year in any two years. The employee is paid half his or her regular salary during the 30 days’ leave, either from the government’s labor insurance fund alone or in part from the fund and part by the employer. If the employer does not pay for sick leave, payment from the government’s labor insurance fund begins on the fourth day of sickness.

Health coverage

On retirement, workers may be eligible for benefits under the:

• Labor pension system
• Labor insurance system.

Labor pension system: This defined contribution program is governed by the Labor Pension Act, which requires employers to contribute an amount equal to at least 6 percent of an employee’s monthly wages to the employee’s account in the Labor Pension Fund. Employees may also make tax-deductible contributions to their accounts of up to 6 percent of their monthly wages.

All employers subject to the Labor Standards Act are subject to the LPA.

Employees who are 61 years old and have worked for at least 15 years are entitled to monthly pension payments. The qualifying age will gradually rise to 65 by 2026. Retirees with less than 15 years of contributions receive a lump sum.

Monthly benefits are based on the total contributions to the person’s account plus accrued returns, average life expectancy, and annuity life charts. Lump-sum payments are based on accumulated contributions to the person’s account plus accrued returns. If a retiree dies before receiving full retirement benefits, his or her survivors or designated beneficiaries may claim the remaining benefits in a lump sum.

Labor insurance system: An employee can claim either monthly payments or a lump-sum benefit, depending on age and years of participation in the system.

Additional benefits

In addition to healthcare benefits, employees in Taiwan are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Taiwan, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: September 26, 2024

Employee onboarding with an employer of record in Taiwan

We write and validate all local employment contracts, streamlining the onboarding process for you and your Taiwanese employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Taiwan, we will:

• Schedule a welcome call to discuss HR and employment information for Taiwan, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Taiwan employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Taiwan. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.