Employer of Record Taiwan: Hire Compliantly Without an Entity in 2026
An Employer of Record Taiwan is a locally registered company that legally employs your staff so you can hire in Taiwan without setting up a subsidiary. The EOR runs payroll, handles Labor Insurance, the 6 percent Labor Pension, National Health Insurance and Employment Insurance, withholds monthly income tax, sponsors Work Permits and the Alien Resident Certificate, and ensures Labor Standards Act compliance.
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Introduction
Employer of Record Taiwan helps businesses expand into Taiwan without the complexity of setting up a legal entity. AYP provides trusted Employer of Record Taiwan solutions that empower your business to hire and manage employees in Taiwan while remaining fully compliant with local employment laws. Our EOR Taiwan service takes care of employment contracts, payroll, benefits, tax compliance, and statutory filings—so An Employer of Record in Taiwan is a locally registered company that legally employs your workers on your behalf. You direct the work, set the salary, and manage the team day-to-day. The EOR handles the Taiwan employment contract, monthly payroll, Labor Insurance contributions, Labor Pension contributions, National Health Insurance (NHI) contributions, Employment Insurance contributions, monthly tax withholding through the Ministry of Finance, Alien Resident Certificate (ARC) and Work Permit sponsorship through the Workforce Development Agency and National Immigration Agency, and full compliance with the Labor Standards Act and Labor Pension Act. You hire in Taiwan in days, not the months it takes to register your own branch or subsidiary.you can focus on scaling your business with confidence.
What's New in 2026
The monthly minimum wage rose to NT$29,500 from 1 January 2026, up from NT$28,590. The hourly minimum wage rose to NT$196 from NT$190. Labor Insurance, Labor Pension (6% employer mandatory), National Health Insurance and Employment Insurance contribution bases adjust correspondingly. The Labor Pension new system continues to anchor portable retirement savings for all Taiwan nationals.
Hire in Taiwan in 60 Seconds
Quick Facts: Hiring in Taiwan (2026)
If you want to hire in Taiwan, you have two real options: engage an Employer of Record Taiwan partner, or register your own Taiwan branch or subsidiary (limited company / 有限公司). The right choice depends on how many people you plan to hire, how fast you need them onboarded, and how much regulatory burden you are willing to carry directly. The rest of this guide compares both routes, walks through every statutory obligation that applies in 2026 — including the NT$29,500 monthly minimum wage from 1 January 2026 — and shows you exactly what an EOR partner takes off your plate.
Who Uses an EOR in Taiwan?
Companies using an Employer of Record in Taiwan typically fall into three groups. The first is regional teams headquartered in Singapore who need a Taiwan payroll for one to ten staff without registering a separate entity. The second is US, European, and Japanese semiconductor and technology firms hiring engineers, sales leads or country managers in Taipei, Hsinchu or Taichung. The third is global SaaS and gaming companies expanding into the Taiwan market without committing to a full subsidiary.
EOR Taiwan vs. Setting Up a Local Entity
Key Industries Hiring Through EOR Taiwan in 2026
Semiconductors and electronics — TSMC's global supply chain, foreign fabless and IP firms hiring engineers and supplier-relationship managers in Hsinchu Science Park. Taiwan is the world's most important semiconductor manufacturing hub.
Technology and SaaS — Foreign tech firms hiring engineers, product, customer success and country managers in Taipei.
Gaming and entertainment — Global gaming studios hiring developers, designers, community and esports leads.
Biotech and medical devices — Pharma and medtech firms hiring clinical, regulatory and commercial staff in Taipei and Tainan.
Renewable energy — Offshore wind and solar developers hiring project managers, engineers and stakeholder leads.
Employment Landscape
Market Overview (2026 Projections)
Taiwan is the centre of the global semiconductor industry and a high-value technology economy. The 2026 theme is supply-chain resilience and AI hardware demand, anchored by TSMC, foundries and the broader fabless ecosystem. GDP is projected at USD 820 billion in 2026, growing 2.5–3.2%. The TWD trades at NT$31–33 per USD. Tech and engineering wages sit at NT$60,000–NT$180,000 per month, with senior IC design and R&D roles significantly higher.
Where You'll Be Hiring
Taipei and New Taipei — The largest talent pool. Strong in finance, professional services, technology HQ, regional offices and consumer brands.
Hsinchu Science Park — The world capital of advanced semiconductor manufacturing. TSMC, MediaTek, UMC, ASE and a deep supplier base. The dense pool of IC design, process and packaging talent here is unmatched globally.
Taichung and Central Taiwan Science Park — Precision machinery, electronics, biotech and emerging Aero-Mech.
Tainan and Southern Taiwan Science Park — TSMC fab cluster expansion, optoelectronics and biotech.
Why Singapore-Headquartered Companies Hire Here
Many Singapore-headquartered companies use an Employer of Record in Taiwan to hire IC designers, hardware engineers, country managers and supply-chain leads near Hsinchu, Taichung or Tainan. The EOR sponsors the Work Permit and Alien Resident Certificate, manages Labor Insurance, Labor Pension, NHI and Employment Insurance enrolment, and applies the correct minimum wage and overtime rules — none of which the Singapore parent entity can do directly. This keeps the Singapore entity clean while you build a Taiwan team.
Laws & Compliance
Taiwanese employment is governed primarily by the Labor Standards Act (LSA) and the Labor Pension Act. Industrial disputes are resolved through the labor inspection authority of each city/county, mediation, and the Labor and Occupational Safety and Health Administration. Workplace safety obligations sit under the Occupational Safety and Health Act. Tax administration runs through the Income Tax Act, enforced by the Ministry of Finance and local tax bureaus, with overall labour policy set by the Ministry of Labor. Social insurance is administered by the Bureau of Labor Insurance and the National Health Insurance Administration.
Critical Compliance Framework (2026)
Common Mistakes Foreign Employers Make in Taiwan
What an EOR Taiwan Partner Is Legally Responsible For
When an Employer of Record is the legal employer in Taiwan, the EOR carries direct responsibility for the Mandarin-language employment contract, monthly statutory contributions to Labor Insurance, Labor Pension, NHI and Employment Insurance, monthly individual income tax withholding, Work Permit and Alien Resident Certificate sponsorship and renewal, statutory leave administration, payslip issuance under the Labor Standards Act, retention of employment records for the statutory period, response to any Labor Inspection Office or Bureau of Labor Insurance inspection, and conduct of any termination in line with the LSA. Your company directs the work and pays the EOR a fee.
Payroll & Tax
Taiwanese payroll runs through four statutory bodies. The Bureau of Labor Insurance (BLI) administers Labor Insurance (work injury, disability, death, old age) and the Labor Pension (the new portable retirement system from 2005). The National Health Insurance Administration (NHIA) administers National Health Insurance covering medical care for all residents. The Bureau of Labor Insurance also administers Employment Insurance (covering unemployment, maternity allowance and vocational training). The Ministry of Finance and local tax bureaus collect monthly individual income tax through employer withholding and annual filing. An Employer of Record registers your workforce with all of these on your behalf.
Employer Statutory Contributions (2026)
Labor Pension (New System) Explained
The Labor Pension Act introduced a portable defined-contribution pension in 2005, replacing the older Labor Standards Act retirement system. Employers contribute 6% of monthly wages to the employee's individual pension account, regardless of how often the employee changes jobs. Employees may voluntarily contribute up to an additional 6% from their own pay (with tax benefit). The pension is portable — when an employee changes employers, the new employer continues contributing to the same individual account. An Employer of Record makes the 6% contribution on schedule each month.
Minimum Wage (2026)
Taiwan's monthly minimum wage rises to NT$29,500 effective 1 January 2026 (up from NT$28,590), and the hourly minimum wage rises to NT$196 (up from NT$190). The rates are set annually by the Minimum Wage Commission and apply to all employees. An Employer of Record applies the new rate from 1 January 2026 and adjusts statutory contributions on the new salary base.
Taiwanese personal income tax is administered by the Ministry of Finance and the relevant local tax bureau under the Income Tax Act. Rates are progressive up to 40%. The first NT$540,000 of comprehensive income (combined with personal exemption and standard deduction) is effectively tax-free for residents. Tax is withheld monthly by the employer using the income tax withholding tables, with annual reconciliation via the May annual filing. Non-residents (in Taiwan fewer than 183 days in a tax year) are taxed at flat rates: 18% for monthly salary above 1.5× the minimum wage, or 6% below that threshold. An Employer of Record calculates monthly withholding, files monthly withholding reports (扣繳憑單) to the tax bureau, and issues the annual withholding statement to the employee.
2026 PIT Bands (Resident)
Bands are inflation-indexed and may be adjusted annually. The figures above reflect the 2025 brackets indexed for 2026; the EOR applies the official Ministry of Finance schedule for the year of payment.
Working Hours & Leave Entitlements
Working hours, overtime, leave entitlements and public holidays in Taiwan are set by the Labor Standards Act and supporting regulations. The Ministry of Labor publishes the annual public holiday list and enforces minimum standards.
Working Hours and Overtime (2026)
The standard work week is 40 hours, structured as 8 hours per day for 5 days, or two-week 84-hour flexibility for certain industries. Daily working time is capped at 8 hours regular plus up to 4 hours overtime, and total monthly overtime is capped at 46 hours (extendable to 54 hours with employee/union consent under specific conditions, with quarterly cap of 138 hours).
Taiwan's "one mandatory rest day + one regular day off" rule (一例一休, "one example, one rest") means each 7-day period must include one mandatory rest day (when overtime is paid at premium rates) and one regular day off (when employees can be called in at standard overtime rates with their consent). Overtime rates are 1.34× the basic hourly rate for the first 2 hours, 1.67× for hours 3–4 on a working day. On a regular day off it's 1.34× to 1.67× depending on hours. On a mandatory rest day it's 1.34× to 2.67×, and on a public holiday it doubles the daily wage.
Leave Entitlements
Public Holidays 2026
Taiwan observes 11–12 paid public holidays in 2026, including New Year's Day, Lunar New Year (4 days), Peace Memorial Day (28 February), Children's Day, Tomb-Sweeping Day, Labour Day (1 May, for workers), Dragon Boat Festival, Mid-Autumn Festival, ROC National Day (10 October), and any other days designated by the Executive Yuan. Where a holiday falls on a weekend, a substitute weekday may be granted.
Work Permits & Visas
To hire a foreign national in Taiwan, the employer obtains a Work Permit through the Workforce Development Agency (WDA), and the foreign worker then applies for an Alien Resident Certificate (ARC) through the National Immigration Agency. Senior professionals can also use the Employment Gold Card route, an integrated four-in-one document combining work permit, resident visa, ARC and re-entry permit. When you use an Employer of Record in Taiwan, the EOR is the registered sponsor — your overseas company does not apply directly.
How EOR Taiwan Handles Work Permit Sponsorship
The EOR is the registered employer with the Workforce Development Agency, prepares and submits the Work Permit application, supports the ARC application with the National Immigration Agency, enrols the foreign worker in Labor Insurance and NHI (foreign workers are entitled to NHI from day 1), and renews permits on schedule. If the employee brings dependants, the EOR coordinates dependant ARC applications.
Work Permit and Visa Categories
The Employment Gold Card is the fast-track route for senior professionals in eight target fields (technology, economics, education, culture, sports, finance, law, architecture). It does not require employer sponsorship at the application stage — the foreign professional applies independently — but an EOR can hire the holder once they arrive without re-applying for a separate Work Permit.
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Termination & Employee Exit
Termination in Taiwan requires a legitimate reason and proper procedure. Disputes go through the labour inspection authority of the relevant city/county and the Ministry of Labor mediation system, with court proceedings as the final route. Notice periods, severance pay (under both the old LSA system and the new Labor Pension Act system), and layoff procedures are set by the Labor Standards Act and Labor Pension Act. An Employer of Record absorbs this legal exposure on your behalf, manages the notice period, calculates statutory severance correctly, and documents the exit in line with the law.
Notice Period Requirements (Employer to Employee)
Either party may pay wages in lieu of notice. Employees giving notice owe the employer the same statutory minimum periods.
Severance Pay (New System under Labor Pension Act)
For employees under the new pension system (which applies to all Taiwan nationals hired after 1 July 2005), statutory severance is 0.5 month's wages per year of service, capped at 6 months total. This applies on dismissal for redundancy, business closure, or other "without-fault" termination.
Employees grandfathered into the old LSA system (hired before 1 July 2005 and never opted into the new system) accrue at a higher rate (1 month's wages per year, no cap). An Employer of Record applies the correct system based on each employee's history.
Legitimate Grounds for Termination
The Labor Standards Act allows termination for misconduct (after due process — written warnings, except for grave misconduct under Article 12), poor performance (with documented coaching and prior warnings), redundancy or business closure (with severance pay, prior notice and report to the labour authority for mass layoffs), and frustration of contract. Termination during pregnancy or work-injury recovery is generally prohibited. An Employer of Record manages the documentation, the warning process, and the severance calculation end to end.
Why AYP
AYP Group is the Employer of Record partner of choice for companies hiring across Asia-Pacific. Our Taiwan advantage rests on three things our clients tell us they don't get elsewhere.
Transparent, predictable pricing. EOR Taiwan from $488 per employee per month, with no hidden setup fees and no surprise compliance charges. You see the full cost before you sign.
One partner, one contract, all of APAC. If you hire in Taiwan today and Singapore, Vietnam, Malaysia, the Philippines, Thailand, Indonesia or Hong Kong next quarter, it's the same contract, the same account team, and the same monthly invoice. No procurement loop for each new country.
Ready for the 2026 changes. We applied the NT$29,500 monthly minimum wage and NT$196 hourly rate from day one of January 2026, run the full Labor Insurance, Labor Pension, NHI and Employment Insurance enrolments through the Bureau of Labor Insurance and the NHIA, and are recognised by the Workforce Development Agency for Work Permit and ARC sponsorship including the Employment Gold Card route. Compliance is not a feature — it's the whole product.
Glossary of Taiwan Employment Terms
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Questions?
We're here to help
An Employer of Record in Taiwan is a locally registered company that legally employs staff on your behalf. You direct the work and manage the team day-to-day. The EOR holds the Mandarin-language employment contract, runs payroll, makes Labor Insurance, Labor Pension, National Health Insurance and Employment Insurance contributions, withholds monthly income tax, and ensures compliance with the Labor Standards Act. You hire in Taiwan without registering your own subsidiary or branch.
EOR Taiwan from AYP starts at $488 per employee per month. The fee covers the local employment contract, monthly payroll, Labor Insurance, Labor Pension, NHI and Employment Insurance contributions, monthly income tax withholding and reporting, Work Permit and Alien Resident Certificate sponsorship for foreign hires, and ongoing compliance with the Labor Standards Act. There are no separate setup fees and no per-filing surcharges.
From 1 January 2026, the monthly minimum wage rose to NT$29,500 (up from NT$28,590) and the hourly minimum wage rose to NT$196 (up from NT$190). The rates apply to all employees regardless of nationality. An Employer of Record applies the new rate from day one of January 2026 and recalculates Labor Insurance, NHI and Labor Pension contributions on the updated salary base.
Labor Insurance is the general social insurance covering work injury, disability, death and old age — funded jointly by employer (~7.7%), employee (~2.2%) and government (~10%). The Labor Pension is a separate retirement savings system introduced in 2005, with the employer contributing 6 percent of monthly wages to the employee's individual portable pension account. Labor Pension is mandatory for Taiwan nationals. Foreign workers can be enrolled at the employee's request. An Employer of Record makes both contributions on schedule.
Taiwan employees require Labor Insurance contributions (~7.7 percent employer plus ~2.2 percent employee, capped at NT$45,800 monthly insured wage), Labor Pension at 6 percent employer (employee voluntary up to 6 percent), National Health Insurance at ~3.10 percent employer plus ~1.55 percent employee (capped at NT$219,500), and Employment Insurance at ~0.7 percent employer plus ~0.2 percent employee. The total typical employer load is ~13.5 to 14.5 percent. The EOR calculates, deducts and remits each one each month.
Yes. The EOR is the registered employer with the Workforce Development Agency and submits the Work Permit application, supports the Alien Resident Certificate application with the National Immigration Agency, and enrols the foreign worker in Labor Insurance and National Health Insurance from day one. The EOR also coordinates dependant ARC applications for spouse and children. For senior professionals, the Employment Gold Card route can be used and the EOR can hire the holder once they arrive in Taiwan.
An Employer of Record manages termination in line with the Labor Standards Act, including statutory notice periods of 10, 20 or 30 days based on length of service, severance pay under the new Labor Pension Act system at 0.5 month wages per year of service capped at 6 months, and full documentation. The EOR carries the legal employer position, which means it absorbs labour inspection and mediation exposure on your behalf when terminations are handled correctly.
Singapore-headquartered regional teams use an Employer of Record in Taiwan to hire IC designers, hardware engineers, country managers and supply-chain leads near Hsinchu, Taichung or Tainan without setting up a separate Taiwan subsidiary. The EOR holds the local employment contract, sponsors Work Permits and ARC for non-Taiwan hires, applies the correct minimum wage and overtime rules, and handles Labor Insurance, Labor Pension, NHI and tax filings. Your Singapore entity stays clean while you build a Taiwan team.
More questions?
We're here to help. Whether it's pricing details, country-specific compliance, or how we compare to other EORs, let's talk.
