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Basic Economic Summary


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.

Basic Information

  • Local Languages: Mandarin Chinese (Official), Taiwanese Hokkien
  • Major Economic Hubs: Taipei, Taichung, Kaoshiung
  • Capital: Taipei
  • Currency: New Taiwan dollar (NTD)
  • Population: 23.87 million (2021)
  • Date Format: yyyy/mm/dd

Useful Information

  • GDP Per Capita (in USD): 32,123 (estimated by IMF, April 2021)
  • Exchange Rate (NTD/USD): 0.036
  • PISA Ranking (2018): Overall score 8 (5th in Mathematics, 11th in Science, 17th in Reading)

Local Universities

Renowned Local Universities:

University Rankings
National Taiwan University Ranking in Taiwan: 1, World Ranking: 177
National Chiao Tung University Ranking in Taiwan: 2, World Ranking: 550
National Taiwan Normal University Ranking in Taiwan: 3, World Ranking: 582
National Tsing Hua University Ranking in Taiwan: 4, World Ranking: 723
National Cheng Kung University Ranking in Taiwan: 5, World Ranking: 830

Salary Data

Average Monthly Salary of Jobs:

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

Talent Sourcing Tips


Employer Payroll Tax

Types of Tax Contribution
Labor Insurance 7.35%
Employment Insurance 1.00% - 2.00%
Pension Fund 6.00%
Health Insurance 3.102%

Employer must withhold tax payable at time of payment. Link to Employer Payroll Tax.

Employee Payroll Tax

Type of Tax Contribution
2.10% 2.10%
Health Insurance 1.551%

Link to Employee Payroll Tax.

Employee Monthly Income Tax

Rate Annual Income Level in NTD
5.00% 0 - 540,000
12.00% 540,000 - 1,210,000
20.00% 1,210,000 - 2,420,000
30.00% 2,420,000 - 4,530,000
40.00% 4,530,000 - 10,310,000
45.00% 10,310,000 and over

Taiwan follows a progressive income tax model. Link to Employee Income Tax.

Minimum Wage & Payroll

Minimum Wage

Taiwan has a minimum wage of 24,000 TWD per month or 160 TWD per hour.

Payroll Cycle

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.

Working Hours & Statutory Leave

Working hours

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.

Overtime pay

Period Hourly Salary (%)
1 - 3 hours 134%
3 - 5 hours 167%
1 - 2 hours 134%
2 - 8 hours 167%
8 - 12 hours 267%

Public Holidays

16 public holidays can be found here.

Annual Leave

Years of Employment Number of Annual Leave
0.5 - 1 3
1 7
2 10
3 14
5 15
10 15 + one additional day for each year after completing 10 years, capped at 30

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.

Sick Leave

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.

Parental Leave

Maternity Leave
Years of employmentPaid leave
< 6months8 weeks leave paid at 50% rate
≥ 6months8 weeks leave paid at 100% rate

Paternity Leave

New fathers are entitled to 5 days of fully paid paternity leave.

Parental Leave

Employees can take unpaid parental leave if:

  • Worked for the same employer for at least 6 months
  • Employee’s child is < 3 years old.
  • Their spouse is employed

Other Leave

Bereavement Leave
RelativeNo. of Days
Spouse or Parent8
Grandparent, Parent-in-law, or Child6
Sibling or Grandparent-in-law

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 reason of 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 misrepresenting 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

Length of Service in CompanyNotice Period
3 months but < 1 year10 days
< 3 years20 days
> 3 years30 days

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.

Severance Pay

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.

Probation period

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.

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