Taiwan

taiwan

AYP Group allows you to provide localised benefits for employees in Taiwan within minutes. All on one manageable online dashboard.

  • Health Insurance
  • Worker Compensation Insurance
  • Pension
Currency
TWD
Payroll Frequency
Monthly
Employer Taxes
Approximately, 16.57% - 19.48%

Overview

Capital
Taipei
Currency
New Taiwan Dollar (TWD)
Date format
yyyy/mm/dd

Contributions

Employer

Employer Payroll Contributions

8.05% Labor Insurance – Capped at 45,800 TWD per month
0.13% – 0.25% Labour Injuries insurance – Capped at 45,800 TWD per month
1.00% – 2.00% Employment Insurance
6.00% Pension Fund – Capped at 150,000 TWD per month
3.102% Health Insurance – Capped at 180,000 TWD per month
18.452% Total Employment Cost (Needs to be re-calculated)
Employee

Employee Payroll Contributions

2.3% Labor Insurance
1.55% Health Insurance
2.651% Employee
Income tax withholding 5%+, only for those whoes monthly gross salary exceed TWD 84,500. (can be higher if s/he is eligible for the certain tax deduction benefits)

Employee Income Tax

5.00% Up to 540,000 TWD
12.00% 540,000 TWD – 1,210,000 TWD
20.00% 1,210,000 TWD – 2,420,000 TWD
30.00% 2,420,000 TWD – 4,530,000 TWD
40.00% 4,530,000 TWD – 10,310,000 TWD
45.00% 10,310,000 TWD and over

Minimum Wage

General

The Minimum Wage is TWD 160 per hour, TWD 24,000 per month.
1/1/2022 onwards: 25,250 per month and 168 per hour.

Payroll

Payroll Cycle

The payroll cycle in Taiwan is generally monthly, and payments are usually paid on the 5th of each month.

13th Salary

Paying a 13th-month salary is customary in Taiwan and is generally paid before the Lunar New Year.

Taiwanese companies generally pay additioanl bonus to employees on these traditional holidays: Lunar new year, Dragon boat festival and Mid-Autumn Festival. It’s not compalsury nor standard amount for these bonus.

Working Hours

General

The maximum number of working hours are 8 hours per day and 40 hours per week, up to a maximum of 12 hours per day, inclusive of overtime. In Taiwan, it is mandatory to have two days off every seven days. One of these days off is compulsory and the other day is flexible and can be worked and paid as overtime.

Overtime

Work in excess of the standard weekly working hours is considered overtime and is regulated by the employment contract or collective agreements.

The employer must pay overtime as follows:

First 2 hours of overtime: 134% of the regular salary rate
Following 2 hours of overtime: 167% of the regular salary rate
The first two hours of overtime worked on a flexible day pay rate must be paid at 134% of the regular salary rate; for the next six hours, the employer must pay the rate of pay at 167% of the regular salary rate. Should additional hours be required, the employer must pay the remaining four hours at 267% of the regular salary rate.

Leave & Public Holidays

Paid Time Off

In Taiwan, employees are entitled to paid holidays based on the length of the labor relationship:

6 months of employment – 3 days’ paid leave
1 year of employment – 7 days’ paid leave
2 years of employment – 10 days’ paid leave
3 years of employment – 14 days’ paid leave

Public Holidays

There are 13 public holidays.

Sick Days

There are two types of sick leave in Taiwan. For employees who are sick but do not require hospitalization, sick leave entitlement is 30 days per year paid at 50.00% of the regular salary rate. When an employee’s sickness is covered by labor insurance, and there be a difference in the amount due and the regular salary rate of pay, the employer must pay the difference.

Sick leave entitlement increases to twelve months when the employee is hospitalized.
5 years of employment – 15 days’ paid leave
10+ years of employment – 1 additional day is given every year, the maximum annual leave is 30 days.
Non taken holidays can be carried over to the following year. If those holidays aren’t used within 2 years or if the employee’s contract is terminated they will have to be compensated.

Maternity / Paternity Leave

Maternity Leave

Employees are entitled to 8 weeks paid maternity leave at 100.00% of the regular salary rate of pay for employees with a minimum of six months of employment. If the employee has not been employed for the minimum period, maternity pay reduces to 50.00%.

In addition, pregnant employees are entitled to 5 days leave prior to birth for medical check-ups.

Paternity Leave

Employees are entitled to 5 days of paid paternity leave at the rate of 100% of the regular pay.

Parental Leave

There is no statutory Parental leave in Taiwan.

Other Leave

In the event of the death of an immediate family member, an employee is entitled to up to eight days’ leave.

National Service is a paid official leave granted to an employee who is required for education or duty of National Service.

Termination

Termination Process

The termination process is standard in Taiwan based on the Labour Law requirements, unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)

Notice of termination must be in writing and sent to the relevant governmental authorities.

Notice Period

Notice periods within Taiwan are as follows:

3 months to 1 year of employment: 10 days’ notice
1-3 years of employment: 20 days’ notice
Over 3 years of employment: 30 days’ notice

Severance Pay

In Taiwan, severance pay is mandatory when applicable and is determined by the employee’s length of service and the start date of the employment contract.

If the employee’s contract start date is before 2005, the Labour Standards Act requires the calculation of the severance pay to be one months’ salary for each year of employment.

If the employee’s contract start date is after 2005, the Labour Standards Act requires severance pay to be half a month’s salary for each year of employment.

Probation Period

The probation period in Taiwan for permanent definite employment is generally three months. “

VISA

General

Work permits are issued by the Council of Labour Affairs (CLA) upon request from a Taiwanese employer.

Work permits are valid for up to three years, although an employer can apply for an extension on behalf of an employee, which the employer should submit within four months of the expiration date. When an employee changes employers after arriving in Taiwan, the new employer must apply for a new work permit. In addition, the previous employer must apply to have the original work permit canceled with the Council of Labour Affairs.

When the permit is issued in a foreign country, it must be verified by a representative from a local Taipei Economic and Cultural Office or Taiwan representative office in the country which issued it.

There is an approved list of employment for foreign nationals in Taiwan, including school or foreign-language teachers, specialized or technical experts, a director, executive, or manager of a business set up by or invested in by a foreigner.

VAT

General

5% standard rate.

Date of Updates

Why AYP

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