Payroll and Benefits Guide - Taiwan

Taiwan
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Currency

New Taiwan Dollar (TWD)
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Capital

Taipei
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Employer Taxes

18.202%
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Date Format

yyy/mm/dd
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Taiwan is an island located in East Asia, surrounded by the East China Sea, Philippine Sea, and the Taiwan Strait.

The official name of Taiwan is the Republic of China (ROC), and its capital city is Taipei.

Taiwan is known for its delicious street food. Some popular dishes include beef noodle soup, bubble tea, stinky tofu, and pineapple cakes.

Taipei 101, located in Taipei, was the world’s tallest building from 2004 to 2010. It is an iconic landmark and offers stunning views of the city.

The Alishan Mountain Range is a popular tourist destination in Taiwan. It is known for its breathtaking sunrise views and picturesque tea plantations.

Taiwan is home to Yushan, the highest peak in Northeast Asia. .

Taiwan

Contributions

Employee Payroll Tax

Contribution TypeRate
Labor Insurance2.40%
Employment Insurance0.20%
Health Insurance1.551%

Employer Payroll Tax

Contribution TypeRate
Labor Insurance8.40%
Employment Insurance0.7%
Pension Fund6.00%
Health Insurance3.102%
National Health Insurance-Supplementary Premium2.11%

Payroll

Payroll Cycle

The payroll cycle in Taiwan is generally monthly and payments are usually paid on the 15th of each month.

13th Salary

Although it is not mandatory, often 13th and 14th-month salaries are provided and paid before the Chinese new year. Festival bonus is also common before the Dragon Boat Festival and Mid-Autumn Festival.

Work Hours and Week

The maximum number of working hours are eight hours per day and 40 hours per week, up to a maximum of 12 hours per day, inclusive of overtime.

Overtime

Work in excess of the standard weekly working hours is considered overtime and is regulated by the employment contract or collective agreements.
Taiwan

Leave

Paid Time Off

The employment contract determines paid leave in Taiwan as dependent on the completed years of service.

Sick Days

There are two types of sick leave in Taiwan. For employees who are sick but do not require hospitalization, sick leave entitlement is 30 days per year paid at 50.00% of the regular salary rate.

Maternity Leave

Employees are entitled to eight weeks of paid maternity leave at 100.00% of the regular salary rate of pay for employees with a minimum of six months of employment.

Paternity Leave

Employees are entitled to seven days of paid paternity leave at the rate of 100% of the regular pay.

Termination

Termination Process

It is common to use a mutual term agreement to end the employment relationship. The terms of this agreement vary case by case.

Notice Period

Notice periods within Taiwan are as follows:

  • 3 months to 1 year of employment: 10 days’ notice
  • 1-3 years of employment: 20 days’ notice
  • Over 3 years of employment: 30 days’ notice

Severance Pay

Generally, severance is 50% of the average monthly pay per year of service, up to a maximum of six months’ pay.

Probation Period

Probation Period

The probation period in Taiwan for permanent definite employment is generally three months.

VISA

VISA

Work permits are issued by the Council of Labor Affairs (CLA) upon request from a Taiwanese employer.

Work permits are valid for up to three years, although an employer can apply for an extension on behalf of an employee, which the employer should submit within four months of the expiration date.

VAT

5% standard rate.