Hire in Taiwan

Taiwan is an island in the western Pacific Ocean that lies roughly 160 km off the coast of southeastern China. It is approximately 395 km long (north-south) and 145 km long across at its widest point. Mountains cover approximately two-thirds of the surface of the island. It is a top player in the world’s information and communication technology industry as well as a major supplier of goods across the industrial spectrum. The economy is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Taiwan.

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A quick overview of Taiwan

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Cost of living index

$$$$ (36 of 139 countries)

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Currency

New Taiwan Dollar (TWD, NT$)

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Payroll frequency

Monthly

Basic facts

Taiwan is an island in the western Pacific Ocean that lies roughly 160 km off the coast of southeastern China. It is approximately 395 km long (north-south) and 145 km long across at its widest point. Mountains cover approximately two-thirds of the surface of the island. It is a top player in the world’s information and communication technology industry as well as a major supplier of goods across the industrial spectrum. The economy is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Taiwan.

Capital

Taipei

Official language/s

Mandarin

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Population

23.31 million (2024 est.)

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VAT - standard rate

5%

Taiwan has 10 to 15 public holidays. Generally, full-time employees are paid for public holidays. Some of the holidays are fixed dates, and some are based on the lunar calendar. Employers and employees can mutually reach an agreement to adjust these holidays to working days.

 

The national holidays mentioned below are valid for the year 2025. 

January 1 New Year’s Day and Republic Day
January 25 - February 2Chinese New Year HolidaysMovable - The first 3 days of the lunar calendar year
February 28Peace Memorial Day
April 3Children's Day Holiday
April 4Children's Day Movable - The first day of the 5th solar term of the traditional Chinese lunisolar calendar
April 5Qing Ming Festival
May 1Labor DayOnly for private sector employees
May 30 - 31Dragon Boat FestivalMovable - The 5th day of the 5th lunar month
September 28Teacher's Day
October 6Mid-Autumn Festival HolidayMovable - The 15th day of the 8th lunar month
October 10National Day
October 25Taiwan Restoration Day
December 25Constitution Day

The approximate time for sharing the contract with an employee in Taiwan is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • The employer does not need to pay severance pay for an employee working under a fixed-term contract on its expiry.
  • There is no statutory provision for the probation period.
  • Employers should pay for and conduct pre-employment physical examinations for workers at the time of employment. 
  • It is the employer’s general duty to protect their remote employees as required under the Occupational Safety and Health Act (OSHA).

The statutory benefit contributions are as follows:

Category Employer Contribution for Taiwanese employees
Pension Fund 6%*
National Health Insurance 4.84% (5.17% x 60% x 1.56 of gross salary)
Supplementary National Health Insurance Premium 2.11%
Labor Insurance (disability, old-age, and survivor) 7.7**%
Employment Insurance 1%**
Unemployment Benefits 0.7%
Workers’ Compensation/Occupational Accident Average 2%***

*2-15% of earnings for non-Taiwanese employees.

**The labor insurance premium rate is 10.5% which along with the 1% rate for employment insurance makes the contribution to 11.5%. 70% of this rate is paid by the employer, 20% comes from the employee’s salary; 10% is covered by the government.

***The average Business Category Accident Premium rate was reduced from the existing 0.14% to 0.13%, and the On and Off Duty Accident Premium rate stays at 0.07%. The average occupational accident insurance premium rate after the adjustment is 0.20% (0.13%+0.07%).

Working Hours

The regular working hours of workers may not exceed eight hours a day or 40 hours a week. With the consent of a labor union, or if there is no labor union in a business entity, with the approval of a labor-management conference, an employer may distribute the regular working hours, of any two workdays every two weeks to other workdays, provided that no more than two hours are distributed to each of the other workdays. However, the total number of working hours should not exceed 48 hours every week.

 

Overtime

Any employer with more than 30 employees needs to have their employees that perform work besides regular working hours report to the local competent authority for record.

The distribution of regular working hours to other workdays in four weeks should not exceed two hours a day:

  • When the regular workday is 10 hours a day, the overtime work should not exceed two hours for that particular day;
  • The extension of working hours, combined with regular working hours, should not exceed:
    • 12 hours a day;
    • 46 hours a month;
    • However, the extension of working hours, with the consent of a labor union, or a labor-management conference, should not exceed 54 hours a month and 138 hours every three months.
Probation Period

There is no statutory provision for probation or trial period in the Labor Standards Act, however, a three-month probation is generally followed.

 

Termination Notice Period

The employer must serve a notice to the worker as per the following:

Job Duration Notice Period
More than 3 months but less than 1 year 10 days
1 to 3 years 20 days
More than 3 years 30 days

In the case of a specific fixed term contract for a term of more than three years, a worker may, upon completion of three years’ work, terminate the contract by giving the employer an advance notice 30 days before their severance.

Working Hours

The regular working hours of workers may not exceed eight hours a day or 40 hours a week. With the consent of a labor union, or if there is no labor union in a business entity, with the approval of a labor-management conference, an employer may distribute the regular working hours, of any two workdays every two weeks to other workdays, provided that no more than two hours are distributed to each of the other workdays. However, the total number of working hours should not exceed 48 hours every week.

 

Overtime

Any employer with more than 30 employees needs to have their employees that perform work besides regular working hours report to the local competent authority for record.

The distribution of regular working hours to other workdays in four weeks should not exceed two hours a day:

  • When the regular workday is 10 hours a day, the overtime work should not exceed two hours for that particular day;
  • The extension of working hours, combined with regular working hours, should not exceed:
    • 12 hours a day;
    • 46 hours a month;
    • However, the extension of working hours, with the consent of a labor union, or a labor-management conference, should not exceed 54 hours a month and 138 hours every three months.
Probation Period

There is no statutory provision for probation or trial period in the Labor Standards Act, however, a three-month probation is generally followed.

 

Termination Notice Period

The employer must serve a notice to the worker as per the following:

Job Duration Notice Period
More than 3 months but less than 1 year 10 days
1 to 3 years 20 days
More than 3 years 30 days

In the case of a specific fixed term contract for a term of more than three years, a worker may, upon completion of three years’ work, terminate the contract by giving the employer an advance notice 30 days before their severance.

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The statutory benefit contributions are as follows:

Category Employer Contribution for Taiwanese employees
Pension Fund 6%*
National Health Insurance 4.84% (5.17% x 60% x 1.56 of gross salary)
Supplementary National Health Insurance Premium 2.11%
Labor Insurance (disability, old-age, and survivor) 7.7**%
Employment Insurance 1%**
Unemployment Benefits 0.7%
Workers’ Compensation/Occupational Accident Average 2%***

*2-15% of earnings for non-Taiwanese employees.

**The labor insurance premium rate is 10.5% which along with the 1% rate for employment insurance makes the contribution to 11.5%. 70% of this rate is paid by the employer, 20% comes from the employee’s salary; 10% is covered by the government.

***The average Business Category Accident Premium rate was reduced from the existing 0.14% to 0.13%, and the On and Off Duty Accident Premium rate stays at 0.07%. The average occupational accident insurance premium rate after the adjustment is 0.20% (0.13%+0.07%).