Your quick guide on talent and labor compliance norms in Taiwan
Capital
Taipei
Currency
New Taiwan dollar (NTD)
Languages
Mandarin Chinese (Official), Taiwanese Hokkien
Payroll Frequency
Once every 15th day of the month
GDP per Capita
$36,157.18
Employer Tax
17.452%
Talent Overview
Taiwan has a score of 80.1 in economic freedom and is the 6th economic free country. The country has been in continuous economic growth for the past years. The service sector and industrialization are the major contributors to the economic development in Taiwan.
Major economic hubs:
Taipei, Kaohsiung, Taichung
Skills in demand:
Teaching and Academic Jobs, IT jobs, Finance and Banking Jobs, Sales Jobs
Local Universities
The top local universities in Taiwan are as follows:
Local: 1
World : 219
Local: 2
World : 714
Local: 3
World : 732
Local: 4
World : 744
Local: 5
World : 845
Salary Data
The table below mentions the average monthly salary in Taiwan
Job Title | Average Monthly Salary (NTD) | Average Monthly Salary (USD) |
Database Administrator | 122,000 NTD | 3,924 USD |
Project Manager | 144,000 NTD | 4,632 USD |
Human Resource Manager | 192,000 NTD | 6,176 USD |
Information Technology Manager | 230,000 NTD | 7,398 USD |
Executive and Management | 175,000 NTD | 5,629 USD |
Programmer / Developer | 136,000 NTD | 4,375 USD |
Network Engineer | 114,000 NTD | 3,667 USD |
Talent Sourcing Tips
104.com.tw, 1111.com.tw, 518.com.tw
3,129,000
While onboarding an individual from Taiwan, the first step that employers must look into the labor market is to be acquainted with the country’s employment laws and regulations. Some of the policies that Taiwan observes for the local employees are below.
The Employee contract may be in Mandarin, Hokkien, English, or in any language that all parties understand. In such cases that contracts are in question with the authorities, they must be translated into Chinese before submitting to court as evidence.
Employees in Taiwan are expected to have a probation period of up to 3 months.
Date | Name | Type |
1 Jan | Republic Day/New Year’s Day | National holiday |
8 Feb | Lunar New Year Holiday | National holiday |
9 Feb | Lunar New Year’s Eve | National holiday |
10 Feb | Lunar New Year’s Day | National holiday |
11 Feb | Lunar New Year Holiday | National holiday |
12 Feb | Lunar New Year Holiday | National holiday |
13 Feb | Lunar New Year Holiday | National holiday |
14 Feb | Lunar New Year Holiday | National holiday |
28 Feb | Peace Memorial Day | National holiday |
4 Apr | Tomb Sweeping Day | National holiday |
5 Apr | Children’s Day | National holiday |
1 May | Labor Day | Private Sector |
10 Jun | Dragon Boat Festival | National holiday |
17 Sep | Mid-Autumn Festival | National holiday |
10 Oct | National Day | National holiday |
Type of Leave | Time Period | Mandatory |
Annual/Earned Leave | 7 days | Yes |
Sick Leave | 30 days | Yes |
Maternity Leave | 8 weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle in Taiwan is generally monthly, and payments are usually paid on the 15th of each month.
Minimum Wage
Taiwan has a minimum wage of 26,400 TWD per month.
Bonus
The 13th-month salary in Taiwan is not mandatory. However, it has been customary for businesses to give their employees a bonus during the Lunar New Year.
Taxes
Category | Contribution |
Labor Insurance | 7.35% |
Employment Insurance | 1% |
Pension Fund | 6% |
Health Insurance | 3.102% |
Category | Contribution |
Labor Insurance | 2.1% |
Health Insurance | 1.551% |
Employment Insurance | 1% |
Annual Taxable Income | Tax rate |
0 to 560,000 NTD | 5% |
560,001 to 1,260,000 NTD | 12% |
1,260,001 to 2,520,000 NTD | 20% |
2,520,001 to 4,720,000 NTD | 30% |
4,720,001 and above | 40% |
The standard VAT rate in Taiwan is 5%. However, it can be reduced to 2% or zero, depending on the circumstances.
Offboarding & Termination
Dismissal of an employee is permissible for the following reasons:
Taiwanese employees under their probationary period will have up to 10 days of notice period. After probation, they are entitled to up to 30 days of notice period.
If the employment began before 2005 under the Labor Standards Act, severance pay is equivalent to 1 month of average wages for each year of employment. Employees who have worked for less than 1 year receive prorated severance pay.
If the employment began after 2005 under the Labor Pension Act, severance pay is calculated based on one month’s average wages for each year of employment. However, the amount paid for each year is equal to 50% of the employee’s average monthly salary.
Visa and Immigration
Foreign employees planning to work in Taiwan must acquire the following documents to legally stay in the country:
The overtime pay in Taiwan
Period | Hourly Salary (%) |
On Weekdays | |
1 – 3 hours | 134% |
3 – 5 hours | 167% |
On Flex-day | |
1 – 2 hours | 134% |
2 – 8 hours | 167% |
8 – 12 hours | 267% |