Hire employees and contractors in Taiwan

Remote’s guide to employing in Taiwan.

  • Capital city

    Taipei

  • Currency

    New Taiwan dollar
    (NT$, TWD)

  • Population size

    23,568,378
    (2020)

  • Languages spoken

    Mandarin Chinese

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

  • Capital city

    Taipei

  • Currency

    New Taiwan dollar
    (NT$, TWD)

  • Languages spoken

    Mandarin Chinese

  • Population size

    23,568,378 (2020)

  • Ease of doing business

    Very easy

  • Cost of living index

    65.35 (2022)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    5%

  • GDP - real growth rate

    3.11%

Grow your team in Taiwan with Remote

To employ in Taiwan, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Taiwan can get complicated, especially without established local relationships.

Remote’s global employment solution makes it easy for your company to employ workers in Taiwan quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Taiwan, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Taiwan

The Taiwanese Labor Standards Act is the principal regulation that spells out provisions for employment relationships and workers’ rights which are applicable to Taiwan’s workforce of 11.5 million.

Employees in Taiwan enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Taiwan.

Public holidays

Date
Holiday Name
Saturday, January 1, 20221st day of year
Monday, January 31, 2022Lunar New Year Vacations
Tuesday, February 1, 2022Lunar New Year Vacations
Wednesday, February 2, 2022Lunar New Year Vacations
Thursday, February 3, 2022Lunar New Year Vacations
Friday, February 4, 2022Lunar New Year Vacations
Monday, February 28, 2022228 Memorial Day
Monday, April 4, 2022Children’s Day
Tuesday, April 5, 2022Tomb Sweeping Day
Sunday, May 1, 2022Laborer Day(workers only)
Monday, May 2, 2022Laborer Day(workers only)
Friday, June 3, 2022Dragon Boat Day
Friday, September 9, 2022Moon Festival
Saturday, September 10, 2022Moon Festival
Monday, October 10, 2022Double Ten Day

Competitive benefits package in Taiwan

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Taiwan are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Taxes in Taiwan

Learn how employment taxes affect your payroll and your employees’ paychecks in Taiwan.

  • Employer

    • 10.5%: Labor Insurance

    • 1%: Employment Insurance

    • 6%: Pension Fund

    • 5.17%: Health Insurance

    • 0.20%: Accidental Insurance

    • 0.025%: Overdue Wages

  • Employee

    • 10.5%: Labor Insurance contribution

    • 5.17%: Health Insurance

    • 1%: Employment Insurance

  • Personal Income Tax Rates (in NT$)

    • 5%: Up to 560,000 ($19278.11)

    • 12%: 560,001 – 1,260,000 ($19278.11 - $43559.98)

    • 20%: 1,260,001 - 2,520,000 ($43375.74 - $86751.48)

    • 30%: 2,520,001 - 4,720,000 ($86751.51 - $162486.90)

    • 40%: 4,720,001 and above ($162486.93)

Types of leave

Paid time off

In Taiwan, employees are entitled to annual paid vacation, depending on their tenure with an employer.

  • More than 6 six months but less than one year - 3 days
  • 1 year but less than 2 years - 7 days
  • 2 years but less than 3 years - 10 days
  • 3 years but less than 5 years - 14 days
  • 5 years but less than 10 years - 15 days
  • Over ten years - 1 additional day for each year of service up to a maximum of 30 days

Unused vacation days can be rolled over for two years, after which they’re monetized and paid to the employee.

Public holidays

There are 15 paid public holidays and employees must be paid double their normal wages if expected to work on a public holiday.

Sick leave

Employees are entitled to two distinct types of sick leave, defined by the Taiwanese Labor Standards Act.

Regular sick leave can last for up to 30 days, during which an employee is entitled to 50% of their normal salary. For serious health challenges requiring hospitalization, employees can take one year of unpaid leave off, every two years.

Maternity leave

A female worker shall be granted maternity leave before and after childbirth for a combined period of eight weeks. The female worker can also start the maternity leave four weeks prior to childbirth.

Paternity/parental leave

Fathers are entitled to seven days of paid paternity leave.

Parents with children aged below three can take up to two years of unpaid parental leave, with labor insurance benefits (equivalent to 60% of the employee’s standard wages paid per child) paid, if the employee has been contributing to the Labor Insurance fund.

Other leave

  • Bereavement leave
    Employees are entitled to:
    - eight days of paid leave for the death of parent or spouse,
    - six days off for the death of a child, grandparent, or parent-in-law, and,
    - three days off for the death of a sibling, or grandparent-in-law.
  • Civil duty leave: Employees are entitled to paid time off to fulfill civil obligations like military service, jury duty, etc.
  • Personal leave: Employees can take up to 14 days of unpaid time off to attend to personal affairs.
  • Marriage: Employees can take up to eight days of paid wedding leave off work.

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, with a notice period provided before the termination comes into effect.

Notice period

The Taiwanese Labor Standards Act defines mandatory notice periods employers must provide, depending on how long an employee has worked.

  • From three months to less than a year: 10 days’ notice
  • From one year to less than three years: 20 days’ notice
  • Three or more years of employment: 30 days’ notice

Severance pay

Employees who commenced working before the 2005 Labor Standards Act was enacted, are entitled to a severance package equivalent to a month’s pay for every of continuous service.

Employees who begun working after the enactment of the 2005 Labor Standards Act are entitled to half month’s wages for every year of continuous employment.

Probation periods

The length of the probation period can be agreed upon by the employer and the individual employee. It is widely practiced that a 3-6 months trial period is used.

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