Employer of Record (EOR) in
Taiwan
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Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
Language(s)
Currency
Capital
Taipei
Population
23.4 M
Public holidays
12 (up to 19 with festivals)
VAT
5%
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
DEFAULT
Indefinite contract
The indefinite-term (permanent) contract is the default and legally preferred form of employment in Taiwan under the Labor Standards Act. It continues until lawfully terminated by either party and gives employees full access to statutory notice, severance, and social insurance protections.
Fixed-term contracts are only lawful for temporary work (expected to finish within 6 months), short-term work, seasonal work, or specific/project-based work with a defined completion point. If such a contract is renewed, if the employee continues working more than 30 days after expiry without objection, or if consecutive fixed-term contracts are signed with only a short interval between them, the relationship is deemed converted into an indefinite-term contract by operation of law.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
The statutory normal working week is 40 hours, typically 8 hours a day over 5 days, with at least one 'rest day' and one 'regular day off' per 7-day cycle. Overtime is capped (generally up to 4 hours/day and 46 hours/month, extendable to 54 hours/month, capped at 138 hours per 3 months, with labor-management agreement) and paid at premium rates - 134% for the first 2 overtime hours on a workday and 167% beyond that, with higher rates for work on rest days.
PROBATION PERIOD
3-6 months
Taiwan's Labor Standards Act does not set a statutory minimum or maximum length for a probationary period, unlike many jurisdictions. Employers set the probation length in the employment contract, most commonly 3 months (occasionally extended to 6 months for senior roles), and courts require the length to be reasonable for the role. Employees on probation retain full statutory rights (minimum wage, leave, social insurance) - probation mainly affects how termination is assessed, not whether a lawful ground (Article 11 or 12) is still required to dismiss.
13TH / 14TH SALARY
Not Required
Taiwan's Labor Standards Act does not require a statutory 13th or 14th month salary. Article 29 only obliges companies that turn an annual profit to pay a discretionary year-end bonus/profit share to employees without misconduct, with the amount left to company policy or negotiation. In practice, the large majority of employers pay a Lunar New Year (Chinese New Year) bonus before the holiday, typically one to two months' salary, as an established labor-market norm - but because it is customary rather than statutory, it is generally not enforceable as unpaid wages unless contractually promised.
JOB TITLE REGULATIONS
Regulated
Taiwan does not impose statutory rules dictating specific job titles or classifications for employment contracts. The Labor Standards Act does require that key contract terms - including the employee's job duties/scope of work - be clearly specified in the written employment contract, and the nature of the role can affect which mandatory contract terms and protections apply.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
Combined statutory employer contribution of approximately 18.89% of monthly salary (subject to insured-salary caps): Labor Insurance ~8.05% (includes Employment Insurance), National Health Insurance ~4.84% (effective rate including the average-dependents multiplier), and Labor Pension 6% (mandatory, paid into the employee's individual pension account). Excludes the variable Occupational Accident Insurance premium (0.11%-0.93%, industry-rated) and any year-end/Chinese New Year bonus.
Employees contribute approximately 3.85% of monthly salary: Labor Insurance ~2.3% (includes Employment Insurance) and National Health Insurance ~1.55%. Labor Pension is employer-funded only; employees may voluntarily contribute up to an additional 6% of salary to their own pension account, which is optional and excluded from this statutory total.
Contribution rates, caps, and insured-salary thresholds are set and periodically revised by Taiwan's Ministry of Labor, National Health Insurance Administration, and Bureau of Labor Insurance, and are subject to change. Figures above are general guidance and do not constitute tax, legal, or accounting advice; employers should confirm current rates with local authorities or a qualified professional before running payroll.
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Calculate your EOR costsHere's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
Type
Duration
Pay During Leave
Sick leave (days 1-3)
50%
50%, up to 30-day annual cap
Unpaid beyond 30-day annual cap unless converted to other leave
8 days for the death of a parent, spouse, or child; 6 days for grandparents or parents-in-law; 3 days for siblings or great-grandparents - all fully paid
Bereavement (Funeral) Leave
Up to 7 days per year (drawn from the 14-day personal leave entitlement), unpaid
Family Care Leave
1 day per month; the first 3 days per year are counted within ordinary sick leave and paid at 50%, additional days are unpaid and excluded from the sick leave cap
Menstrual Leave
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Taiwan's statutory social insurance system has three main pillars, each with its own employer/employee/government split and insured-salary cap:
- Labor Insurance (includes Employment Insurance): total premium ~11.5% of insured salary (capped at NT$45,800/month) - employer pays 70% (~8.05%), employee pays 20% (~2.3%), government pays 10%.
- National Health Insurance (NHI): premium rate 5.17% of insured salary (capped at NT$313,000/month) - employer pays 60% (~4.84% effective, after the average-dependents multiplier), employee pays 30% (~1.55%), government pays 10%. A separate 2.11% supplementary premium applies to bonuses and certain irregular income.
- Labor Pension: employer contributes a mandatory 6% of monthly salary (capped at NT$150,000/month) into the employee's individual pension account; employees may voluntarily add up to 6% more.
WORKPLACE INJURY PROTECTION
Workplace injury and occupational disease protection is provided through Labor Occupational Accident Insurance, which is entirely employer-funded (employees pay nothing).
- Premium rates range from approximately 0.11% to 0.93% of insured salary, set annually by industry risk classification (capped at an insured salary of NT$72,800/month).
- Covers medical expenses, wage compensation during recovery, disability benefits, and death/survivor benefits from work-related accidents or occupational diseases.
- Employers must also continue paying an injured employee's regular wages during medical treatment under the Labor Standards Act's original-wage compensation obligation, coordinated with insurance payouts.
Severance is owed when an employer terminates employment on the statutory 'without cause' grounds (Labor Standards Act Article 11) or in certain other qualifying circumstances. The formula depends on which pension system covers the employee's service:
- New system (Labor Pension Act, service from July 1, 2005 onward): 0.5 month's average wage per full year of service (pro-rated for partial years), capped at a maximum of 6 months' average wages.
- Old system (pre-July 1, 2005 service, for employees who did not transfer): 1 month's average wage per full year of service, with no statutory cap.
- Employees who worked through the 2005 transition may have severance calculated under both formulas combined for their respective periods of service.
- Severance is not owed for cause-based dismissal under Article 12 or for voluntary resignation, and is due within 30 days of the termination date.
Taiwan has no general statutory 13th or 14th month salary. Labor Standards Act Article 29 only obliges profitable companies to pay a discretionary year-end bonus/profit share, with the amount set by company policy or negotiation.
- In practice, paying a Chinese (Lunar) New Year bonus before the holiday is a near-universal employer custom, typically equal to one to two months' salary.
- The bonus amount and eligibility (e.g., pro-ration for employees who joined mid-year) are usually set by company policy or the employment contract rather than by law.
- Because it is customary rather than mandatory, the bonus is generally not enforceable as unpaid wages unless it has been contractually promised.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Taiwan to stay compliant from day one.
Unfair dismissal
Taiwan operates a closed-grounds dismissal system: an employer may only terminate an employee for a reason listed in Labor Standards Act Article 11 (business/economic reasons, with notice and severance) or Article 12 (serious employee misconduct, summary dismissal without notice or severance). A dismissal outside these grounds is void. Taiwan has no fixed statutory 'unfair dismissal' damages award; instead courts can order reinstatement with back pay, and the employee may separately be owed notice pay and severance if the dismissal is found unlawful.
Objective / fair dismissal
Article 11 sets out the objective/'fair' grounds for employer-initiated termination with notice and severance: business closure or transfer, business losses or contraction, force majeure suspending operations for over one month, a change in business nature making the employee's role redundant with no suitable alternative available, or demonstrable inability to competently perform the job. Article 12 allows immediate, cause-based dismissal without notice or severance for serious misconduct (e.g., fraud at hiring, violence, serious breach of contract, unauthorized absence for 3+ consecutive days or 6+ days in a month), but must be exercised within 30 days of the employer learning of the grounds.
During probation
No separate, lighter dismissal standard — the same statutory grounds generally apply, though courts allow more flexibility assessing 'inability to perform the job' early on. Notice is tied to length of service, not probation status: under 3 months' service, no statutory notice generally applies (though many employers provide it as a courtesy); severance may still be owed if the dismissal falls under Article 11.
After probation
Once an employee has passed 3 months of service, the full statutory termination framework applies: employer-initiated dismissal requires both a valid Article 11 ground and the applicable notice period based on tenure (10, 20, or 30 days), plus severance pay - unless the dismissal qualifies as cause-based summary dismissal under Article 12.
Notice and severance rules summarized here reflect Taiwan's Labor Standards Act as generally applied; actual obligations can be affected by individual employment contracts, applicable collective bargaining agreements, and case-specific facts. This is general information, not legal advice - employers should consult qualified local counsel before terminating an employee in Taiwan.
Content last reviewed Sep 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.
