Taiwan is Asia’s premier semiconductor and advanced manufacturing hub, with world-leading positions in chip design and fabrication underpinning an export-driven economy. GDP growth is forecast at 2.0% for 2026, following an estimated 4.45% in 2025, with AI-related global demand remaining the primary driver.

The Labour Standards Act provides employees with strong statutory protections across working hours, leave, and termination. Taiwan’s social insurance system spans five distinct programmes, with total employer costs typically ranging 20–25% above gross salary. The Employment Gold Card offers a streamlined, sponsor-free pathway for high-skilled foreign professionals. An Employer of Record provides the local entity presence and compliance infrastructure to hire, pay, and manage talent in Taiwan from day one.

Minimum Wage (Effective January 1, 2026)

Taiwan adjusts its minimum wage annually. The 2026 increase marks the 10th consecutive annual rise, set by the Basic Wage Review Committee based on economic conditions, cost of living, and labour market factors. A single national rate applies with no regional variation.

Social Insurance: Five Programmes

Taiwan’s social insurance system covers Labour Insurance, National Health Insurance, Labour Occupational Accident Insurance, Employment Insurance, and the Labour Pension system. Total employer cost typically ranges 20–25% above gross salary.

_{Key details: Labour Insurance capped at NT$45,800 monthly insured salary. NHI applies a 1.56 average dependents multiplier for premium calculation; capped at NT$313,000/month. Supplementary NHI premium of 2.11% applies to bonuses exceeding 4× monthly insured salary. Employers must contribute a minimum 6% to individual Labour Pension accounts; employees may voluntarily contribute up to 6% (tax-deductible).}

Working Hours Regulations

Annual Paid Leave

Leave entitlement begins after 6 months of continuous employment and increases with service length, up to a maximum of 30 days after 10+ years.

Other Leave Types

National Holidays (12 days)

Founding Day (January 1), Peace Memorial Day (February 28), Tomb Sweeping Day (April), Dragon Boat Festival, Mid-Autumn Festival, National Day (October 10), plus 6 days for Lunar New Year/Spring Festival. Dates for lunar-based holidays vary annually.

Taiwan’s work permit system includes the Employment Gold Card for high-skilled talent and traditional employer-sponsored work permits, with 2026 Talent Act amendments expanding benefits for foreign professionals.

Employment Gold Card

A unique 4-in-1 document combining work permit, residence visa, Alien Resident Certificate (ARC), and re-entry permit. Available to qualified professionals without employer sponsorship.

_{2026 Talent Act Amendments: Spouses of special professionals may apply for individual work permits without employer sponsorship. Graduates from top 1,500 global universities are exempt from work experience requirements. Foreign students with Taiwan degrees are eligible for a 1–3 year reduction in the permanent residency requirement.}

General Work Permit

Employer-sponsored and specific to one position. Requires a bachelor’s degree or relevant professional experience. Processing typically takes 2–4 weeks. Must be renewed annually and is tied to the sponsoring employer.

Taiwan’s Labour Standards Act requires valid statutory grounds for termination. Employees enjoy significant protections and employers must follow prescribed procedures.

Termination With Notice (Article 11)

Valid grounds: business suspension or transfer, operating losses or contraction, force majeure exceeding one month, business nature change requiring workforce reduction, or employee proven incompetent for the position.

_{Additional benefit: Employees receive 2 days per week of paid job-search leave during the notice period.}

Termination Without Notice (Article 12)

Permitted for: misrepresentation in employment contract, serious policy violations, intentional damage to company property or disclosure of confidential information, three consecutive days or six days per month absence without justification, or criminal conviction affecting employment.

Severance Pay

Taiwan operates two parallel severance systems based on when employment commenced.

_{Average wage is calculated as last 6 months’ total wages ÷ total days. Penalty for non-payment: NT$300,000–1,500,000 fine. Protected employees (pregnancy, maternity leave, work-related injury or illness) cannot be terminated. Mass redundancy requires advance notice to authorities, public announcement, and negotiation with affected employees.}

AYP Group holds a direct licensed entity in Taiwan — your employees are hired and managed by us, not routed through an aggregator network. We manage all five social insurance programmes accurately, administer Labour Pension contributions to individual employee accounts, and ensure payroll reflects the 2026 minimum wage, overtime rates, and leave reforms.

We support the full work permit process — including Employment Gold Card applications and employer-sponsored general work permits — and manage termination procedures in accordance with the Labour Standards Act, including severance calculations under both the old and new systems. Across every engagement: clear costs, no hidden fees, and compliance you can rely on.

Speak to Our Taiwan Team

Ready to hire in Taiwan? Contact AYP Group and one of our specialists will be in touch.

_{Legal Disclaimer: This guide provides general information about Taiwan employment regulations and EOR services. Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change. © 2026 AYP Group. All rights reserved.}