Leave Policy in Taiwan

Key Takeaways Summary

Essential Taiwan Leave Policy Requirements:

• Annual Leave: 3-30 days based on tenure, with sophisticated accrual calculations and mandatory payout provisions
• Maternity Leave: 8 weeks paid leave with enhanced protections and pregnancy accommodation requirements
• Public Holidays: Expanded to 19 holidays in 2025 following major legislative reform in May 2025
• Minimum Wage: Increased to NT$28,590 monthly (US$870) and NT$190 hourly effective January 2025
• Legislative Evolution: Historic 2025 amendments fundamentally reshape holiday entitlements and work-family balance provisions

Introduction

Taiwan stands at the forefront of Asia's technological revolution, hosting global leaders like Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, and numerous innovative startups that drive the world's supply chains. As Asia's 7th largest economy with a highly skilled, English-speaking workforce and strategic location bridging East and West, Taiwan offers exceptional opportunities for international expansion. The island's commitment to democratic values, strong intellectual property protections, and business-friendly policies make it an increasingly attractive destination for global companies seeking to establish Asian operations.

Taiwan's sophisticated employment framework reflects its advanced economic status and commitment to worker welfare. The Labor Standards Act, comprehensively updated in 2025, establishes one of Asia's most progressive leave policy systems, balancing employee protection with business flexibility. Recent legislative changes, including the groundbreaking addition of four new national holidays in May 2025 and enhanced work-family balance provisions, demonstrate Taiwan's continued evolution as a modern employment destination.

Understanding Taiwan's intricate leave requirements extends beyond compliance---it's essential for attracting Taiwan's competitive talent pool, maintaining strong employee relations, and positioning your business for long-term success in this dynamic market. This comprehensive guide provides authoritative analysis of all mandatory leave types, recent regulatory developments, and strategic implementation guidance to ensure seamless operations within Taiwan's evolving legal landscape.

Legal Framework Overview

Taiwan's employment relationship framework operates under a comprehensive system anchored by the Labor Standards Act (LSA), which governs fundamental working conditions, wages, working hours, and leave entitlements. The Act of Gender Equality in Employment provides additional protections for family-related leave and workplace equality, while the newly implemented Minimum Wage Act (effective January 2024) establishes systematic wage review processes.

The Ministry of Labor maintains primary oversight of employment practices, with enhanced enforcement capabilities and regular updates reflecting Taiwan's commitment to modern labor standards. Recent regulatory achievements include the historic passage of the Memorial Days and Holidays Implementation Act in May 2025, which elevated administrative holiday regulations to full legal status while adding four new national holidays.

Enforcement mechanisms have strengthened significantly, with penalties for minimum wage violations ranging from NT$20,000 to NT$1,500,000, and innovative "name and shame" provisions requiring public disclosure of violating employers. The systematic approach to wage adjustments through the new Minimum Wage Commission ensures predictable annual reviews based on economic indicators and stakeholder input.

Critical Government Resources:

• Ministry of Labor Official Portal
• Labor Standards Compliance Guidelines
• Gender Equality Employment Regulations

Mandatory Leave Types

Annual Leave Entitlements

Taiwan's annual leave system employs a sophisticated tenure-based calculation that rewards long-term employment while ensuring immediate access to paid time off. The progressive structure encourages employee retention while providing flexibility for both employers and workers.

The system requires employers to notify employees within 30 days of qualification about annual leave rights and scheduling procedures. Unused leave must be compensated as regular wages upon termination, with calculations based on the employee's average monthly salary in their final month of employment.

Parental and Family Care Leave

Taiwan's family support framework has undergone substantial enhancement through recent amendments to the Gender Equality in Employment Act, reflecting growing recognition of work-life balance needs and demographic challenges.

The 2022 amendments introduced simultaneous unpaid parental leave applications for dual-income families, enhanced flexibility with minimum 30-day periods (instead of 6 months), and government subsidies for additional pregnancy-related leave days.

Sick Leave and Medical Provisions

Taiwan's medical leave framework provides comprehensive coverage for both routine health needs and extended medical treatment, with sophisticated payment structures balancing employee protection and employer sustainability.

The Labor Insurance system provides additional medical benefits that may supplement employer payments, with employers required to top up payments when insurance benefits fall below 50% of regular salary during ordinary sick leave.

Additional Leave Categories

Beyond core annual and family leave, Taiwan's comprehensive framework addresses diverse life circumstances and professional development needs through specialized leave provisions.

These additional provisions reflect Taiwan's commitment to comprehensive work-life balance, addressing cultural expectations around family obligations and personal circumstances that impact employee availability.

Industry-Specific Variations

While the Labor Standards Act provides universal minimum standards, certain industries maintain additional requirements based on operational needs, collective bargaining agreements, and regulatory oversight from specialized agencies.

Industry variations typically enhance statutory minimums, with technology sector employers commonly providing superior annual leave, flexible working arrangements, and professional development opportunities to attract top talent in Taiwan's competitive market.

Compliance Requirements

Taiwan's leave policy compliance framework requires systematic attention to documentation, procedural requirements, and timing obligations that have become increasingly sophisticated with recent regulatory enhancements.

The enhanced enforcement environment includes regular labor inspections, with particular focus on gender equality compliance and minimum wage adherence. The new "name and shame" provisions for wage violations represent a significant shift toward public accountability for employment law compliance.

Essential Compliance Resources:

• Work Rules Requirements
• Minimum Wage Implementation Guidelines

Best Practices for Employers

Successful implementation of Taiwan's leave policies requires proactive management strategies that exceed minimum compliance while supporting operational continuity and employee satisfaction in Taiwan's competitive talent market.

Key Implementation Essentials:

• Digital Leave Management Systems: Implement comprehensive platforms tracking complex annual leave calculations, family leave coordination, and holiday compensation to ensure accuracy and compliance with Taiwan's sophisticated requirements
• Multilingual Policy Documentation: Develop clear leave policies in both Traditional Chinese and English to ensure understanding across diverse workforces, particularly important for international companies
• Managerial Training Programs: Provide regular training on leave approval processes, discrimination prevention, and cultural sensitivity, especially regarding family care leave and pregnancy-related provisions
• Government Liaison Relationships: Establish connections with Ministry of Labor representatives and local labor affairs bureaus to stay informed of regulatory changes and interpretation guidance
• Integration with Social Insurance Systems: Ensure seamless coordination between company leave policies and Taiwan's Labor Insurance, Employment Insurance, and National Health Insurance systems

Most common employer mistakes include failing to provide timely annual leave notifications, inadequate documentation of pregnancy-related accommodations, and confusion regarding the complex holiday substitution rules. Essential documentation encompasses detailed leave balance tracking, medical certificate verification procedures, and comprehensive records of government-subsidized leave payments.

Recent Changes and Future Outlook

Taiwan's leave policy landscape experienced historic transformation in 2025, with the most significant legislative changes since the Labor Standards Act's original implementation fundamentally reshaping the holiday framework and employment compliance requirements.

The government's commitment to work-family balance continues expanding, with ongoing discussions about extending parental leave benefits and enhancing childcare support. Future priorities likely include digital transformation of employment services and continued minimum wage progression toward regional competitiveness.

Looking forward, employers should anticipate continued regulatory evolution supporting Taiwan's demographic transition and talent retention goals. The Ministry of Labor's modernization initiatives suggest ongoing enhancements to family support provisions and workplace flexibility while maintaining Taiwan's competitive business environment.

Quick Reference Guide

This consolidated summary provides essential leave policy information for daily HR operations and rapid compliance verification in Taiwan's complex regulatory environment.

Managing Your Taiwan Team

Our employer of record services help you access Taiwan's innovative, highly educated workforce without the complexity of local HR and compliance management. We handle the intricate details of Taiwanese labor law compliance, allowing you to focus on growing your business and managing your team's performance.

Our Taiwan services include:

• Payroll Outsourcing Management: Accurate calculation of Labor Insurance, National Health Insurance, and pension contributions with automated compliance updates
• Local Compliance Assurance: Stay current with Labor Standards Act amendments and MOL regulatory changes
• Risk Mitigation: Reduce exposure to labor law violations and associated penalties
• Talent Acquisition Support: Access to Taiwan's skilled professionals across semiconductor, technology, and manufacturing sectors
• Multi-currency Solutions: Seamless salary payments in New Taiwan Dollar or your preferred currency

We offer employer of record services across multiple countries in the APAC region, with deep expertise in Taiwan's unique regulatory environment and cultural considerations.

Let us help you build and manage your Taiwan team. If you want to access Taiwan's top talent without the complexity of local HR and payroll outsourcing management, contact us for a consultation today. Our Taiwan employment specialists can assess your specific needs and design a solution that ensures compliance while supporting your business growth objectives.