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Asia

Taiwan

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Employer of Record (EOR) in Taiwan

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Taiwan Introduction

Taiwan is a country in east Asia located in the northwestern Pacific Ocean, consisting of 168 islands. The main island is Taiwan has mountain ranges dominating the eastern 2/3 of the island, and the western 1/3 has plains where its urbanized population is concentrated. Taiwan is claimed by the People’s Republic of China, which refuses diplomatic relations with countries that recognize Taiwan, but the country maintains official diplomatic relations with 13 out of 193 UN member states.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 8 weeks of maternity leave, which is normally taken as 4 weeks before the due date and 4 weeks after the birth. Fathers are entitled to 7 days of paid paternity leave.

Sick Leave

Employees in Taiwan are entitled to 2 types of sick leave. Regular sick leave can be taken for up to 30 days, and is paid at 50% of the regular salary. For serious health issues requiring hospitalization, employees can take up to 1 year of unpaid leave.

Paid Leave

Taiwan has 15 public holidays, and employees are entitled to paid time off each year, the length of which depends on how long they have worked at their company.

  • 6 months-1 year = 3 days of paid time off
  • 1-2 years = 7 days of paid time off
  • 2-3 years = 10 days of paid time off
  • 3-5 years = 14 days of paid time off
  • 5-10 years = 15 days of paid time off
  • 10+ years = 15 days + 1 day per year of service (30 maximum)

Employees can also take leave for marriage, civic duty, bereavement, and others.

Wage Requirements and Working Hours

The minimum wage is TWD 25,250 per month, and a standard workweek is 40 hours at 8 hours per day. Overtime work is usually paid between 134%-267% of the regular salary.

Termination Process

Process

Employment contracts can be terminated with just cause, as long as a notice is provided before the termination comes into effect.

Notice Period

Notice periods for terminations depend on how long an employee has worked at their company:

  • 3-12 months = 10 days of notice
  • 1-3 years = 20 days of notice
  • 3+ years = 30 days of notice

Severance Pay

Employees in Taiwan are usually entitled to 0.5 months of wages for every year of continuous employment at their company.

Additional Information

It is customary to pay a 13th-month salary bonus in Taiwan, generally during the Lunar New Year.

OVERVIEW
Language(s):
Mandarin Chinese
Currency:
New Taiwan Dollar (TWD)
Capital City:
Taipei
Population:
23.9 Million
Cost of Living Rank:
37th
VAT (Valued Added Tax):
5%
Employer TaxES
17.65%
(estimated)

★  7.35% - Labor Insurance

★  6% - Pension Fund

★  1% - Employment Insurance

★  3.1% - Health Insurance

★  0.2% - Accidental Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Taiwan

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Taiwan get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Taiwan are paid on time in New Taiwan Dollar (TWD). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Taiwan, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.