Leave Policy in Taiwan

Types of Leave

Taiwan’s Labor Standards Act and Gender Equality Act govern employee leave entitlements. Here's a comprehensive breakdown:

• Annual Leave: Employees are entitled to paid annual leave based on years of service: 3 days (0.5–1 year), 7 days (1–2 years), 10 days (2–3 years), 14 days (3–5 years), 15 days (5–10 years), and 1 extra day per year beyond 10 years up to 30 days total.
• Sick Leave: Employees receive up to 30 days of paid sick leave per year at 50% of their regular wages. Hospitalization extends paid sick leave up to 1 year, though pay may be limited depending on the labor insurance policy.
• Maternity Leave: Female employees receive 8 weeks of maternity leave. If they have worked for more than 6 months, they receive full pay; otherwise, they receive half pay. Maternity benefits are partially covered by Labor Insurance.
• Paternity Leave: Fathers are entitled to 5 days of paid paternity leave, fully covered by Labor Insurance. Leave must be taken within 30 days after childbirth.
• Menstrual Leave: Female employees may take 1 day per month of menstrual leave, counted within 3 days of sick leave at half pay.

Unused Leave

Unused annual leave can be carried forward for up to 1 year. If not taken after this period, it must be compensated in cash. Sick, maternity, and paternity leave cannot be carried over or encashed. Employers must maintain accurate records to avoid disputes.

Consequences of Mismanagement

Violating Taiwan’s labor laws may result in fines ranging from TWD 20,000 to TWD 1 million. Labor inspectors may conduct audits and issue penalties for failure to provide mandatory leave or inaccurate wage calculations. Employee grievances may be escalated to the Ministry of Labor or the courts.

Public Holidays

Taiwan celebrates 12 national public holidays, including Lunar New Year, 228 Peace Memorial Day, and National Day. If employees work during a public holiday, they must be compensated with a day off or paid double.

How AYP Manages Leave Compliance

AYP tracks all types of leave according to Taiwan’s labor laws and ensures proper alignment with Labor Insurance claims. Our system helps employers prevent unused leave risks and automates calculations for annual leave, sick leave, and gender-based entitlements.

Contact Us

Need help managing a compliant workforce in Taiwan? Contact AYP today for full-service EOR solutions tailored to your local HR needs.