Employer of Record (EOR) Taiwan

Taiwan EOR | Seamless Expansion

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 you can focus on scaling your business with confidence.

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EOR in Taiwan from $298
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Key Takeaways

Quick Reference for EOR Taiwan Services:

  • Setup Time: 1-3 days vs 4-12 weeks for local entity setup
  • Minimum Investment: No capital requirements vs NT$500,000+ (approx. USD 16,000) for limited company
  • Compliance: 100% Taiwan Labor Standards Act compliance with expert local support
  • Cost: Starting from $298/month per employee (all-inclusive)
  • Coverage: Complete HR, payroll, labor insurance, health insurance, and tax management
  • Best For: Companies hiring 1-100 employees, market testing, or rapid tech expansion

Why Choose EOR Taiwan in 2026:

Taiwan's robust economy, driven by a projected 7.3% GDP growth in 2025 and continued AI-sector dominance, makes it a critical hub for technology and manufacturing. An Employer of Record Taiwan eliminates the bureaucratic hurdles of company registration and tax compliance, allowing you to deploy talent immediately in this high-growth market.

What is an Employer of Record Taiwan?

An Employer of Record (EOR) Taiwan is a third-party service that legally employs your workers in Taiwan on your behalf. While you maintain day-to-day operational control, the EOR handles all legal employment responsibilities, including payroll, statutory insurance (NHI/LI), tax withholding, and compliance with the Taiwan Labor Standards Act (LSA).

The EOR model is essential in Taiwan, where labor laws are strictly enforced and bureaucratic procedures for foreign entities can be complex. With the minimum wage rising to NT$29,500 in 2026 and new "Flexible Parental Leave" policies taking effect, EORs provide the necessary infrastructure to navigate these changes effortlessly.

How EOR Taiwan Works

Your ResponsibilitiesEOR Responsibilities
Day-to-day employee managementLegal employment contracts (Bilingual)
Performance oversightMonthly payroll & tax withholding
Strategic directionLabor & Health Insurance registration
Project assignmentsPension (6%) contributions
Company cultureExpense reimbursement management
Goal settingWork permit & ARC assistance

The relationship creates a seamless experience where you retain operational control while transferring legal liabilities to local experts who understand Taiwan's unique "guanxi" (relationship) culture and strict labor regulations.

Taiwan Employment Landscape 2026

Taiwan remains the global anchor for semiconductor manufacturing and AI hardware, offering a highly educated workforce and advanced infrastructure. The "AI Boom" has driven 2025 growth to a 15-year high, positioning 2026 as a year of stabilized, high-value expansion.

Market Overview

Economic Indicator2026 Data
GDP Growth~3.5-3.7% (Stabilizing after 7.3% in 2025)
Population~23.4 million
Labor Force~11.6 million active workers
GDP per Capita~USD 38,000 - 40,000
CurrencyNew Taiwan Dollar (TWD/NT$), ~32.5 per USD
Business LanguageMandarin Chinese (English widely used in tech/business)

Key Business Advantages

AdvantageDetails
Tech LeadershipWorld's #1 semiconductor foundry capacity (TSMC ecosystem)
Talent QualityHigh density of STEM graduates and engineering talent
Strategic LocationCentral hub connecting Northeast and Southeast Asia
IP ProtectionRobust intellectual property laws and legal framework
IncentivesGovernment subsidies for R&D and foreign investment

Taiwan Employment Laws & Compliance Requirements

Navigating Taiwan's employment landscape requires strict adherence to the Labor Standards Act (LSA). Taiwan laws heavily favor employee protection, mandating specific contract terms, overtime calculations, and severance formulas.

2026 Minimum Wage Structure

Effective January 1, 2026, Taiwan has raised its minimum wage for the 10th consecutive year.

CategoryRate (NT$)Monthly EquivalentUSD Equivalent
Monthly Minimum WageNT$29,500NT$29,500~$910
Hourly Minimum WageNT$196N/A~$6.00

Note: This 3.2% increase from 2025 reflects inflation adjustments and economic growth sharing.

Working Hours & Overtime Regulations

RegulationRequirement
Standard Hours8 hours/day, 40 hours/week
Rest Days"One Fixed Rest Day" and "One Flexible Rest Day" per week
Overtime (Workday)First 2 hours: 1.34x rate
Next 2 hours: 1.67x rate
Overtime (Rest Day)First 2 hours: 1.34x
Next 6 hours: 1.67x
>8 hours: 2.67x
Max Monthly OTCapped at 46 hours (can be increased to 54 with union agreement)

Leave Entitlements and Benefits

Taiwan's leave policies have been significantly updated for 2026 to encourage work-life balance.

Leave TypeEntitlementCompensation
Annual Leave3 days (after 6mo), 7 days (1yr+), 10 days (2yr+)Full salary
Maternity Leave8 weeksFull pay (if employed >6 months)
Paternity Leave7 daysFull pay
Flexible Parental LeaveNEW for 2026: Up to 30 days, taken by the day80% wage subsidy (Govt paid)
Sick Leave30 days (non-hospitalized)Half pay
Menstrual Leave1 day per monthHalf pay (counts towards sick leave)

*The new "Flexible Parental Leave Without Pay" scheme effective Jan 1, 2026, allows parents to take leave in single-day increments rather than monthly blocks, significantly increasing flexibility.*

EOR Taiwan vs Entity Setup: Strategic Decision Framework

Establishing a subsidiary in Taiwan involves the Ministry of Economic Affairs (MOEA), Investment Commission approval, and complex capitalization rules.

FactorEOR TaiwanLocal Entity Setup
Setup Time1-3 days4-12 weeks
Initial Investment$0 capitalNT$500k+ recommended
Ongoing Costs$288-700/employeeOffice, tax accountant, audit fees
Legal Compliance100% managedInternal HR/Legal liability
Hiring SpeedImmediatePost-registration & bank setup
FlexibilityHigh (Easy exit)Low (Complex liquidation)
Risk LevelLow (Transferred)High (Direct liability)
Best ForMarket entry, <100 staff, Sales/Tech teamsLarge manufacturing, Permanent HQ

Complete EOR Taiwan Process

Step 1: Partner Selection & Cultural Assessment (Week 1)

Evaluate providers based on their Labor Standards Act expertise and ability to handle bilingual contracts (English/Traditional Chinese).

  • Check: Do they have a local license? Can they handle the 2026 flexible leave updates?

Step 2: Employment Structure Design (Week 2)

  • Contracts: Must be bilingual. Key terms (salary, bonuses, location) are strictly regulated.
  • 13th Month Pay: Not statutory but customary (Guaranteed Year-End Bonus). EORs will structure this clearly.

Step 3: Onboarding & Insurance Registration (Week 3)

  • Mandatory: Registration for Labor Insurance (LI), National Health Insurance (NHI), and Labor Pension (6%) must happen on Day 1 of employment. Late registration incurs fines.

Step 4: Ongoing Management

  • Payroll: Monthly processing including tax withholding.
  • Filings: Annual tax reconciliation (Jan) and withholding statements.

Taiwan Payroll & Tax Requirements 2026

Taiwan uses a progressive tax system. For 2026, tax brackets and exemptions have been adjusted for inflation.

Personal Income Tax Structure (2026)

Net Taxable Income (NT$)Tax RateProgressive Difference (NT$)
0 - 610,0005%0
610,001 - 1,380,00012%42,700
1,380,001 - 2,770,00020%153,100
2,770,001 - 5,190,00030%430,100
5,190,001+40%949,100
  • Non-Residents (<183 days): Flat rate of 18% (if salary > monthly minimum wage x 1.5) or 6%.
  • Exemptions: Standard deduction raised to NT$136,000 for single filers in 2026.

Mandatory Social Contributions (2026)

Insurance TypeEmployee RateEmployer RateGovt Rate
Labor Insurance20%70%10%
Health Insurance (NHI)30%60%10%
Labor Pension0% (Voluntary up to 6%)6% (Mandatory)0%
Employment Insurance20%70%10%

*Note: Labor Insurance premium rate increased to 12.5% in 2025/2026.*

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Work Permits & Visas for Foreign Employees

Taiwan is actively recruiting foreign talent through the Employment Gold Card program.

Visa Categories

Visa Type Purpose Validity Requirements
General Work Permit Standard employment 1-3 years Salary > NT$47,971, degree + 2yrs exp
Employment Gold Card Top-tier talent (4-in-1 visa) 1-3 years Salary > NT$160k or specific skills
Entrepreneur Visa Startup founders 1 year Venture capital or incubator backed

Application Process

  1. Work Permit: Employer applies via Ministry of Labor (MOL) (7-10 days).
  2. Resident Visa: Employee applies at Taiwan consulate.
  3. Alien Resident Certificate (ARC): Apply within 15 days of arrival.

Termination & Employee Exit Procedures

Termination in Taiwan is strictly regulated under the LSA. "At-will" employment does not exist.

Legal Termination Framework

  • Article 11 (Economic/Layoff): Requires notice + severance.
  • Article 12 (Misconduct): No notice/severance required (must be proven).

Severance Pay (New Pension Scheme)

  • Calculation: 0.5 months' average wage per year of service.
  • Notice Period: 10 days (3mo-1yr service), 20 days (1-3yrs), 30 days (3yrs+).

Top EOR Providers in Taiwan: 2026 Analysis

Leading EOR Taiwan Providers

  • AYP Group: Premier choice for Taiwan expansion. AYP offers deep expertise in the Labor Standards Act and zero-penalty compliance. Their local team manages the complex bilingual contract requirements and 2026 leave policy updates seamlessly.
  • Remote: Offers a strong platform for tech-focused companies, automating IP transfer and payroll for distributed teams in Taiwan.
  • Deel: Known for speed and contractor management, suitable for startups needing quick access to Taiwan's freelancer market.
  • Globalization Partners: Enterprise-focused provider ideal for large-scale, complex expansions requiring heavy legal infrastructure.

Why Choose AYP Group for EOR Taiwan?

AYP Group combines regional strength with local precision.

Capability AYP Group Advantage
Local Expertise Deep knowledge of Taiwan's Labor Standards Act & 2026 reforms
Compliance Record 100% compliance with Tax & Labor Insurance bureaus
Speed Onboard employees in 1-3 days with bilingual contracts
Support Dedicated account manager with English/Mandarin fluency
Transparency Clear pricing starting at USD 288/month

Get Started with EOR Taiwan Today

Taiwan represents one of the world's most critical and technologically advanced markets, offering exceptional opportunities for companies that understand its pivotal role in the global supply chain. Success requires combining strict regulatory compliance with deep cultural intelligence---exactly what professional EOR services provide.

Ready to Enter Taiwan?

The opportunity in Taiwan is clear: A global semiconductor powerhouse and one of Asia's most robust economies offers highly skilled talent, world-class infrastructure, and a strategic gateway to the Greater China and APAC markets. However, success requires navigating intricate labor standards alongside deep-rooted cultural expectations.

Take the next step in your Taiwan expansion with confidence:

  • Cultural Consultation: Discuss your hiring needs with Taiwan experts who understand both Guanxi (relationship) dynamics and Labor Standards Act requirements.
  • Comprehensive Analysis: Receive transparent pricing and guidance on Taiwan's unique "13th Month Pay" and bonus structures.
  • Compliance Review: Understand Taiwanese employment obligations, including National Health Insurance (NHI) and Labor Pension statutes.
  • Relationship Strategy: Develop a culturally sensitive implementation plan focused on long-term trust and "face" (Mianzi).

Our Taiwan team combines deep cultural understanding with regulatory expertise, ensuring your expansion succeeds through authentic relationship-building and compliant operations.

Start Your Taiwan Journey Today

Don't let regulatory complexity delay your Taiwan market entry. AYP Group's proven EOR platform enables you to hire exceptional Taiwanese talent while building the authentic relationships that drive long-term success.

Our commitment to cultural sensitivity, regulatory excellence, and harmonious business relationships makes us the preferred EOR provider for companies serious about success in the "Silicon Island."

Ready to unlock Taiwan's potential? Contact AYP Group today and discover how cultural understanding combined with regulatory expertise can accelerate your business success in the Heart of Asia.

About AYP Group

AYP Group has been simplifying global employment across Asia for over a decade. Our Taiwan EOR services eliminate cultural and regulatory complexity while building authentic relationships essential for local business success. Trust the experts who understand that in Taiwan, business is built on trust, Renqing (human sentiment), and mutual respect.

Legal Disclaimer: This guide provides general information about Taiwan employment regulations and EOR services based on official sources including the Ministry of Labor (MOL), National Health Insurance Administration (NHIA), and National Immigration Agency (NIA). Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change, and this information should not be considered as legal counsel. AYP Group maintains current regulatory knowledge and provides updates to clients as part of comprehensive EOR services.

Frequently Asked Questions (FAQs)

What is Employer of Record Taiwan?

An Employer of Record (EOR) in Taiwan legally employs your staff on your behalf, taking care of HR, compliance, tax, and payroll—allowing you to operate without a local entity.

Why choose Employer of Record Taiwan over direct hiring?

EOR Taiwan helps companies avoid the complexities of labor insurance, NHI registration, and tax compliance, enabling you to focus on operations.

Who provides Employer of Record Taiwan services?

AYP provides EOR Taiwan solutions through its local office, ensuring compliance with the Labour Standards Act and Tax Code.

Can AYP sponsor work permits and visas in Taiwan?

Yes. AYP manages Work Permit and ARC (Alien Resident Certificate) applications for foreign employees.

How does AYP onboard Taiwan employees?

  • Local contract issuance
  • Labor insurance and NHI enrollment
  • Orientation and system onboarding

Can I transfer an employee from other countries to Taiwan using EOR?

Yes. AYP handles all processes including visa applications and payroll localization.

How is payroll and tax managed under EOR Taiwan?

We handle monthly salary processing, labor fund contributions, and tax filings.

What are the income tax obligations for EOR employees in Taiwan?

Employees pay progressive income tax. AYP deducts and reports taxes per Taiwan’s tax regulations.

Still have more questions? Contact us today

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