* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

New Taiwan Dollar (NT$)


CST (GMT +8)

Employment Cost


Annual Leave

3 days

In-demand Specialties*
Education, It, Finance & Banking

The Ultimate Guide to Hiring Employees in Taiwan

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Taiwan

Employing in Taiwan requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Taiwan with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Taiwan quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Taiwan boasts the 11th most economically free environment worldwide, as per the 2020 Index of Economic Freedom because of its streamlined foreign investment process. Additionally, the World Bank ranks Taiwan 15th globally for ease of doing business, facilitating the smooth establishment of international companies in the country.

Over the past five years, Taiwan has experienced consistent GDP growth and earned commendable scores for macroeconomic stability in the recent Global Competitiveness Report by the World Economic Forum (WEF). The WEF ranks Taiwan as the 12th most competitive economy on a global scale.

Renowned for its innovation, Taiwan showcases an impressive tech-savvy workforce. The country secures the 3rd position in patent applications and the 5th spot in global rankings for research and development.

Taiwan incorporates its culture into employment practices. Employers commonly reward their employees with cash bonuses ranging from 800 TWD to 2,000 TWD during three major holiday festivals: the Mid-Autumn Festival, the Dragon Boat Festival, and the Lunar New Year.


Fundamental Aspects of Employment in Taiwan

In Taiwan, two contract types are utilised: fixed term for temporary or short-term positions, and indefinite term for both part-time and full-time roles. These employment contracts do not need to be in formal writing for legal validity, but it is recommended to indicate the following basic employment terms:

  • Designated workplace and working hours
  • Starting and conclusion date
  • Job title and responsibilities
  • Vacations and leave entitlements
  • Wages
  • Rules of conduct
  • Work discipline

Probationary Period in Taiwan

While probationary periods are a common practice in Taiwan, they are not explicitly mentioned in the country's Labour Standards Act (LSA). Employers are obligated to adhere to the general LSA standards concerning termination and severance during probationary periods. Typically, for permanent definite employment, the probationary period lasts for about three months.

Working hours in Taiwan

In Taiwan, standard working hours amount to 8 hours per day or 40 hours per week, with a maximum of 12 hours per day, including overtime. Every seven working days necessitate two days off, with one being obligatory and the other offering flexibility for work, compensated as overtime if utilised. The total weekly working hours must not surpass 48 hours.

Overtime in Taiwan

Overtime work, as outlined in employment contracts or collective agreements, is compensated according to specified rates. Employees can work up to 12 hours daily, including overtime, with a monthly limit of 46 overtime hours. The initial 2 hours of overtime receive a rate of 134% of the regular salary, while the subsequent 2 hours are compensated at a rate of 167%.

Navigating Key Aspects of Payroll in Taiwan

Taiwan has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Taiwan

1 January - 31 December is the 12-month accounting period that businesses in Taiwan use for financial and tax reporting purposes.

Payroll Cycle in Taiwan

The payroll cycle in Taiwan is usually monthly, with employees being paid by the 15th of each month.
168 TWD p/h

Minimum Wage in Taiwan

The minimum wage for employees in Taiwan is typically 168 TWD per hour, amounting to ~25,250 TWD per month for a typical 40 hour work week.

Minimum wages and salaries in Taiwan

The Labour Standards Act mainly governs the labour rights in Taiwan, which sets the rules for basic wage, working hours, weekends, holidays, and other key employment conditions in the country.

Bonus Payments in Taiwan

Though not obligatory, employees in Taiwan often receive a 13-month and 14th month salary, which is typically paid before Chinese New Year. Additionally, festival bonuses are often given before the Dragon Boat Festival and Mid-Autumn Festival.

Comprehensive Overview of Employment Taxes in Taiwan

Understanding the tax obligations for both employers and employees is crucial when operating in Taiwan's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Taiwan.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 21.60% on top of the employee salary in Taiwan.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Taiwan, the typical estimation for employee payroll contributions cost is around 5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Taiwan, individual tax rates are progressive, and tax residents are also subject to a flat-rate Income Basic Tax (IBT) of 20%, applicable to both locals and expats staying in Taiwan for 183 days or more in the tax year.

Tax Rate Income Bracket

Pension in Taiwan

A Taiwanese company contributes 6% of Taiwanese employees' earnings and 2-15% for non-Taiwanese employees to pension funds. Employees can voluntarily contribute 5.1% to National Pension Programs. Labour insurance premiums at 10.5% cover disability, old-age, and survivor annuities, with employees contributing 6% of monthly earnings to a mandatory individual account.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Taiwan tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Taiwan

When it comes to terminating employment in Taiwan, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Terminating employment should comply with the Labour Standards Act. Mutual termination agreements, subject to case-specific terms, may also be utilised. Both parties must give prior notice, provide payments in lieu, and settle any remaining holidays, payments, or benefits upon termination.

Notice Period

The notice periods in Taiwan extend based on the following length of employment:

  • Less than 3 months of service: no notice required
  • 3 months to 1 year of service: 10 days’ notice
  • 1-3 years of service: 20 days’ notice
  • More than 3 years of service: 30 days’ notice

Severance Pay

Severance pay in Taiwan - required for redundancy or poor performance termination - is typically 50% of the average monthly pay per year, up to a maximum of 6 months' pay. For those under the LSA pension system, including foreigners and local employees, it amounts to one month's average pay per year of employment.

Annual Leave Entitlements and Company Policies in Taiwan

The annual leave entitlement in Taiwan is 3 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Taiwan

Full-time employees in Taiwan are paid for public holidays, which can be either fixed or based on the lunar calendar. Employers and employees can negotiate adjustments, and Taiwan observes various national and public sector holidays, including:

Holiday Date

Paid Time Off in Taiwan

Maternity Leave in Taiwan

Paternity Leave in Taiwan

Sick Leave in Taiwan

Bereavement Leave

National Service

Parental Leave In Taiwan

Taiwan's Benefits Built Into Playroll

Competitive benefits package in Taiwan

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Taiwan's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Taiwan

Make your benefits package in Taiwan a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Taiwan

Playroll allows you to provide localized benefits for employees in Taiwan within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Taiwan create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Taiwan

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Taiwan.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!