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Taiwan Employment Guide

Your quick guide on talent and labor compliance norms in Taiwan




New Taiwan dollar (NTD)


Mandarin Chinese (Official), Taiwanese Hokkien

Payroll Frequency

Once every 15th day of the month

GDP per Capita


Employer Tax


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

Map 3

Local Universities

The top local universities in Taiwan are as follows:

Uni1 4

National Taiwan University


Local: 1

World : 219

Uni2 3

National Taiwan Normal University


Local: 2

World : 714

Uni3 4

National Cheng Kung University


Local: 3

World : 732

Uni4 3

National Tsing Hua University


Local: 4

World : 744

Uni5 4

National Chiao Tung University


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

Top Local Job Boards:,,

Number of LinkedIn users:


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
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

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 1

Payroll Cycle

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

Payroll 2

Minimum Wage

Taiwan has a minimum wage of 26,400 TWD per month.

Payroll 3

Overtime Pay

The overtime pay in Taiwan


13th Month Pay

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


Employer Payroll Tax:

Category Contribution
Labor Insurance 7.35%
Employment Insurance 1%
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%


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:

  • 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.

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:

  • Taiwan work permit
  • Alien Residence Certificate
  • Taiwan work visa
Visa 19
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Minimum Wage

Overtime Pay

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%

Visa & Immigration