In 2020, sustainable energy was the best performer in Taiwan’s economy and the largest emerging sector according to a Michael Page Taiwan report. The growth in the sector translates to a large number of employment opportunities, with numerous companies willing to offer an increment of 18% to new hirings in 2021. With increased economic activity in the country, companies will look to stay ahead of the curve and hire skilled and experienced workers.
Taiwan is primed to become a technological hub, as organisations enhance their focus on innovation, product development and more efficient supply chain management.Furthermore, in lieu of keeping up with new business operation procedures post-COVID, companies are increasing their investment on technology by 68%. To bridge the current skill gap with the adoption of new digital technologies, 20% of companies are now opting for short-term contracts as a part of their hiring tactics.
Taiwan has a minimum wage of 24,000 TWD per month or 160 TWD per hour.
The payroll cycle in Taiwan is generally monthly, and payments are usually paid on the 15th of each month.
13th month salary
Paying a 13th-month salary is customary in Taiwan and is generally paid during the Lunar New Year.
Standard working hours are 8 hours per day and 40 hours per week. It is mandatory in Taiwan to have two days leave every week, of which one is fixed and the other is flexible, which can be negotiated for overtime. The maximum overtime hours is 46 hours per month.
16 public holidays can be found here.
Unused vacation days are carried over to the following year, and if they are not used within 2 years, they will be converted into salary (based on 1st-year wage). Unused vacation days will be paid upon termination of employment contract.
Employees are entitled to sick leave of 30 days per year, at half-pay. In addition, if an employee is hospitalized, they are entitled to unpaid sick leave of up to 1 year. However, the total sick leave cannot exceed 1 year in 2 consecutive years.
When employee’s sickness is covered by the labor insurance, but is less than half-pay, the employer pays the difference (to make up half-pay). If the employee is injured or disabled due to an accident at work, the employer pays them full salary; and if after 2 years, the employee does not recover from the occupational injury or disability, the employer must pay them a lump sum of 40 months’ average wage.
New fathers are entitled to 5 days of fully paid paternity leave.
Employees can take unpaid parental leave if:
Dismissal of an employee is permissible for the following reasons:
An employee is entitled to paid leave of up to two working days per week during the notice period for the purpose of finding a new job. The employer may elect to make payment in lieu of the notice period.
If the employment began before 2005 under the Labour Standards Act, severance pay is equivalent to 1 month of average wages for each year of employment. Employees who have worked for <1 year receive a pro-rated severance pay.
If the employment began after 2005 under the Labour 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.
Not mandatory, but if an employee is terminated during the probation period, they will have to be provided with advance notice and severance pay.
The standard VAT rate in Taiwan is 5%. However, it can be reduced to 2% or zero, depending on the circumstances.