Payroll Cycle
Minumum Wage
Overtime Pay
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%
Visa Immigration

Talent Wiki - Taiwan

Your quick guide on talent and labor compliance norms in Taiwan
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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
$36,227
Employer Tax
17.45%-18.45%

Supplementary Guide for Employment and Expansion in Taiwan

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 with world rank in Taiwan are

National Taiwan University

RANKING

Taiwan : 1

World : 177

National Chiao Tung University

RANKING

Taiwan : 2

World : 550

National Taiwan Normal University

RANKING

Taiwan : 3

World : 582

National Tsing Hua University

RANKING

Taiwan : 4

World : 723

National Cheng Kung University

RANKING

Taiwan : 5

World : 830

Salary Data

The table below mentions the average salary in Taiwan

Job Title Salary Range (NTD) Salary Range (USD)
Data Scientist 100,000 - 327,000 3595.38 - 11756.88
Product Manager 92,500 - 302,000 3325.72 - 10858.04
Algorithm Engineer 92,000 - 257,000 3307.75 - 9240.12
Machine Learning Engineer 79,100 - 245,000 2843.94 - 8808.67
Project Manager 77,900 - 218,000 2800.80 - 7837.92
Software Analyst 64,300 - 194,000 2311.83 - 6975.03
Front-end Developer 60,000 - 172,000 2157.23 - 6184.05

Talent Sourcing Tips

Top Local Job Boards

104.com.tw, 1111.com.tw, 518.com.tw

Number of LinkedIn Users

2,768,000

Top Recruitment Agencies

TalentPlus Consultants, Spring Professional, PeopleSearch

Employing in Taiwan

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. 

Employee Contract

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. 

Probation Period

Employees in Taiwan are expected to have a probation period of up to 3 months.

Public and Provincial Holidays

Date Name Type
1 Jan Republic Day/New Year's Day National holiday
31 Jan Lunar New Year's Eve National holiday
1 Feb Lunar New Year's Day National holiday
2 Feb Lunar New Year Holiday National holiday
3 Feb Lunar New Year Holiday National holiday
4 Feb Lunar New Year Holiday National holiday
5 Feb Lunar New Year Holiday National holiday
28 Feb Peace Memorial Day National holiday
4 Apr Children's Day National holiday
5 Apr Tomb Sweeping Day National holiday
3 Jun Dragon Boat Festival National holiday
9 Sep Mid-Autumn Festival Holiday National holiday
10 Sep Mid-Autumn Festival National holiday
10 Oct National Day National holiday

Employee Leaves

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.

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Minimum Wage

Taiwan has a minimum wage of 25,250 TWD per month or 168 TWD per hour.

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Overtime pay

To get more details about the overtime pay in Taiwan, click on the link below.

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Health Examination Clause

Bonus

13th month salary

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.

Employee Benefits

  • ~Life and accident insurance
  • ~Medical Insurance
  • ~Pension
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Taxes

Employer Payroll Tax

Category Contribution
Labor Insurance 7.35%
Employment Insurance 1% - 2%
Pension Fund 6%
Health Insurance 3.102%

Employee Payroll Tax

Category Contribution
Labor Insurance 2.1%
Health Insurance 1.551%
Employment Insurance 1%

Employee Income Tax

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%

VAT

The standard VAT rate in Taiwan is 5%. However, it can be reduced to 2% or zero, depending on the circumstances.

Offboarding & Termination

Termination Process

Dismissal of an employee is permissible for the following reasons:

  • ~Closure of business or transfer of ownership.
  • ~Company operations are suspended for more than one month by force.
  • ~Change of company business nature, requiring a reduction in the number of employees, and there are no suitable job openings for redundant employees.
  • ~The employee is confirmed to be incompetent to carry out the work assigned to him or her.
  • ~A notice and pay severance to the employee is needed; unless an employee misrepresents facts at the time of signing the employment contract, violence against the employer, the employer’s family, or fellow employees, the employee is absent from work for three consecutive days or for six days in a month without justifiable reason, or the employee causes damage purposefully.

Notice Period

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.

Severance Pay

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:

  • ~Taiwan work permit
  • ~Alien Residence Certificate
  • ~Taiwan work visa
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