Currency
New Taiwan Dollar (TWD)
EOR IN Taiwan
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EXPAND YOUR BUSINESS IN Asia - Pacific
A guide to employing and growing your team in Taiwan
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Taiwan is a highly developed, high-income economy with a critical role in the global technology and semiconductor supply chain. It is a leading exporter of electronics, machinery, and petrochemicals, supported by a highly educated and professional workforce with a median age of around 44 years. Taiwan operates within a strong democratic framework and maintains a robust legal system that supports business stability and innovation. The Labor Standards Act governs employment relationships, outlining clear provisions for worker rights across its workforce of approximately 11.5 million people. Employees benefit from protections against discrimination based on age, religion, sexual orientation, gender expression, and race. Companies looking to hire in Taiwan typically need to establish a local legal entity or partner with global employment platforms like Swivelt to ensure compliance with local employment regulations. The minimum wage in Taiwan is 29,500.00 TWD per month, effective January 2026.
Employer Contributions
Labor Insurance: 10.5%
Employment Insurance: 1%
Pension Fund: 6%
Health Insurance: 5.17%
Accidental Insurance: 0.20%
Overdue Wages: 0.025%
Total Employer Contribution: 22.895%
Employee Payroll Taxes
Labor Insurance: 10.5%
Health Insurance: 5.17%
Employment Insurance: 1%
Total Employee Contribution: 16.67%
Employee Income Tax Rates
Up to 560,000 ($19,278.11): 5%
560,001 – 1,260,000 ($19,278.11 – $43,559.98): 12%
1,260,001 – 2,520,000 ($43,375.74 – $86,751.48): 20%
2,520,001 – 4,720,000 ($86,751.51 – $162,486.90): 30%
Above 4,720,001 ($162,486.93+): 40%
Statutory Leave
Employees are entitled to annual paid leave based on tenure: 3 days (6 months-1 year), 7 days (1-2 years), 10 days (2-3 years), 14 days (3-5 years), 15 days (5-10 years), and an additional day per year beyond 10 years, up to a maximum of 30 days. Unused leave can be carried forward for up to two years, after which it must be compensated. In addition, employees are entitled to 15 paid public holidays annually, and work on these days must be compensated at double wages. Employees can take up to 30 days of regular sick leave per year at 50% of their normal salary. For serious illnesses requiring hospitalization, employees are eligible for up to one year of unpaid leave every two years.
Pregnancy and Maternity Leave
Female employees are entitled to a total of 8 weeks of maternity leave, which can begin up to 4 weeks before childbirth.
Paternity Leave
Fathers are entitled to 7 days of paid paternity leave.
Work-Related Injury Leave
Parental Leave
Parents with children under three years old can take up to 2 years of unpaid parental leave. During this period, eligible employees receive labor insurance benefits equivalent to approximately 60% of their standard wages per child.
Other Leave
Employees are entitled to various additional leave types, including bereavement leave (ranging from 3 to 8 days depending on the relation), paid civil duty leave for obligations such as military service or jury duty, up to 14 days of unpaid personal leave annually, and up to 8 days of paid marriage leave.
Termination Process
Employment contracts in Taiwan can be terminated when a valid or just cause is established, with employers required to provide advance notice in accordance with the law before termination takes effect. Employees who commenced employment before the 2005 amendments to the Labor Standards Act are entitled to severance pay equivalent to one month’s wages for each year of continuous service. Employees hired after the 2005 reform are entitled to half a month’s wages for each year of continuous employment.
Notice Period
The statutory notice period depends on the employee’s length of service:
10 days’ notice for employment between 3 months and less than 1 year
20 days’ notice for employment between 1 year and less than 3 years
30 days’ notice for employment of 3 years or more
Probation Period
Probation periods are not strictly regulated and are typically agreed upon between employer and employee, with common practice ranging from 3 to 6 months.