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Public Holidays Calendar

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Taiwan 2022
Day Date Holiday Notes
Saturday Jan-1 Republic Day
Monday Jan-31 Chinese New Year's Eve
Tuesday Feb-1 Chinese New Year's Day
Wednesday Feb-2 Second Day of the Chinese New Year
Thursday Feb-3 Third Day of the Chinese New Year
Friday Feb-4 Fourth Day of the Chinese New Year
Saturday Feb-5 Fifth Day of the Chinese New Year
Monday Feb-28 Peace Memorial Day
Monday Apr-4 Children's Day
Monday Apr-4 Ching Ming Festival
Sunday May-1 Labour Day
Friday Jun-3 Dragon Boat Festival
Saturday Sep-10 Mid-Autumn Festival Holiday
Saturday Sep-10 Mid-Autumn Festival
Monday Oct-10 National Day
Countrypedia

Taiwan
Payroll and Benefits Guide

Last updated: May 03, 2022
Currency
New Taiwan Dollar (TWD)
Payroll Frequency
Monthly
Employer Taxes
17.152%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Taiwan

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Overview

Capital
Taipei
Currency
New Taiwan Dollar (TWD)
Date Format
yyyy/mm/dd
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

7.35%

Labor Insurance (* From 2022, the labour insurance premium rate will be raised to 10.5% plus 1% for employment insurance – an amount equivalent to 11.5% of salaries. Of this 11.5%, 70% is covered by the employer, 20% is from the employee’s salary, and the final 10% is covered by the government.)

1.00%

Employment Insurance – Unemployment benefits are financed by the employment insurance premium rate of 1% which is divided into the employer’s contribution of 0.7%, the employee’s contribution of 0.2%, and the government’s 0.1%.

6.00%

Pension Fund

3.102%

Health Insurance (National health insurance contribution is 5.17% of gross salary where employers are liable for 60% of the premium (0.3102%), and 1.58% of the national average number of dependent, employees are liable for 30% of the premium (0.155%), and the government is liable for the remaining 10% (0.052%).)

17.152% Total Employment Cost

Employee

Employee Payroll Contributions

2.10%

Labor Insurance * From 2022, the labour insurance premium rate will be raised to 10.5% plus 1% for employment insurance – an amount equivalent to 11.5% of salaries. Of this 11.5%, 70% is covered by the employer, 20% is from the employee’s salary, and the final 10% is covered by the government.

1.00%

Employment Insurance – Unemployment benefits are financed by the employment insurance premium rate of 1% which is divided into the employer’s contribution of 0.7%, the employee’s contribution of 0.2%, and the government’s 0.1%.

1.551%

Health Insurance (National health insurance contribution is 5.17% of gross salary where employers are liable for 60% of the premium (0.3102%), and 1.58% of the national average number of dependent, employees are liable for 30% of the premium (0.155%), and the government is liable for the remaining 10% (0.052%).)

4.651% Total Employee Cost

Employee

Employee Income Tax

5.00%

Up to 560,000 TWD

12.00%

560,001 TWD – 1,260,000 TWD

20.00%

1,260,001 TWD – 2,520,000 TWD

30.00%

2,520,001 TWD – 4,720,000 TWD

40.00%

4,720,001 TWD and above

Minimum Wage

General

Taiwan’s comprehensive labor rights protection system is primarily based on the Labour Standards Act, which stipulates the basic wage, working hours, weekends and holidays, and other primary working conditions. For persons paid by the month, the minimum monthly wage required by law is 25,250 TWD, and the minimum hourly wage is 168 TWD. 

Payroll

Payroll Cycle

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

13th Salary

Paying a 13th-month salary is customary in Taiwan and is generally paid during the Lunar New Year.

Working Hours

General

The maximum number of working hours are 8 hours per day and 40 hours per week, up to a maximum of 12 hours per day, inclusive of overtime.  In Taiwan, it is mandatory to have two days off every seven days. One of these days off is compulsory and the other day is flexible and can be worked and paid as overtime. 

Overtime

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

The employer must pay overtime as follows: 

  • First 2 hours of overtime: 134% of the regular salary rate
  • Following 2 hours of overtime: 167% of the regular salary rate

The first two hours of overtime worked on a flexible day pay rate must be paid at 134% of the regular salary rate; for the next six hours, the employer must pay the rate of pay at 167% of the regular salary rate. Should additional hours be required, the employer must pay the remaining four hours at 267% of the regular salary rate. 

Working Week

Monday-Friday

Leave

Paid Time Off

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

Annual leave is accrued as follows: 

  • 6 months to less than 1 year of employment: 3 days’ paid leave
  •  1 year of employment: 7 days’ paid leave 
  • 2 years of employment: 10 days’ paid leave
  • 3 years of employment: 14 days’ paid leave
  • 5 years of employment: 15 days’ paid leave
  • One additional day is provided for each year of service following the completion of 10 years (to a maximum of 30 days)

Public Holidays

There are 15 public holidays.

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.  When an employee’s sickness is covered by labor insurance, and there be a difference in the amount due and the regular salary rate of pay, the employer must pay the difference. 

Sick leave entitlement increases to twelve months when the employee is hospitalized. 

Maternity Leave

Employees are entitled to 8 weeks paid maternity leave at 100.00% of the regular salary rate of pay for employees with a minimum of six months of employment.  If the employee has not been employed for the minimum period, maternity pay reduces to 50.00%. 

In addition, pregnant employees are entitled to 5 days leave prior to birth for medical check-ups. 

Paternity Leave

Employees are entitled to 5 days of paid paternity leave at the rate of 100% of the regular pay.   

Parental Leave

There is no statutory Parental leave in Taiwan. 

Other Leave

In the event of the death of an immediate family member, an employee is entitled to up to eight days’ leave. 

National Service is a paid official leave granted to an employee who is required for education or duty of National Service. 

Termination

Termination Process

The termination process is standard in Taiwan based on the Labour Law requirements, unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)   

Notice of termination must be in writing and sent to the relevant governmental authorities. 

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

In Taiwan, severance pay is mandatory when applicable and is determined by the employee’s length of service and the start date of the employment contract. 

If the employee’s contract start date is before 2005, the Labour Standards Act requires the calculation of the severance pay to be one months’ salary for each year of employment.   

If the employee’s contract start date is after 2005, the Labour Standards Act requires severance pay to be half a month’s salary for each year of employment. 

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 Labour 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.  When an employee changes employers after arriving in Taiwan, the new employer must apply for a new work permit. In addition, the previous employer must apply to have the original work permit canceled with the Council of Labour Affairs. 

When the permit is issued in a foreign country, it must be verified by a representative from a local Taipei Economic and Cultural Office or Taiwan representative office in the country which issued it. 

There is an approved list of employment for foreign nationals in Taiwan, including school or foreign-language teachers, specialized or technical experts, a director, executive, or manager of a business set up by or invested in by a foreigner. 

VAT

General

5% standard rate.

Version History

May 3, 2022
Payroll contributions and personal income tax rates have been updated.
January 11, 2022
Minimum wage increased to 25,250 TWD a month and 168 TWD per hour.
Payroll contributions and personal income tax rates have been updated.
Stay up to date on payroll & employment law changes

Questions & Answers

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Russell
Russell
1 year ago

Is it legal to hire “temporary workers” for short term jobs or do contracts have to be open-ended?

Admin
1 year ago
Reply to  Russell

Yes, it is legal to hire people for fixed-term contracts for short term employment, seasonal work, or any type of short terms tasks. However, it is always a good idea to consult with an expert about local laws on employee classification to avoid misclassification error.

Jeet
Jeet
1 year ago

Hey, is it Mandatory to pay first salary to the new hire employee in same month or can we pay in following month.

Lia
Lia
1 year ago

Bonus payment to TW employees, can we pay amount with decimals? or need to round up to nearest dollar?

Admin
1 year ago
Reply to  Lia

Hi Lia, it is a common practice to give employees in Taiwan a bonus as a “13th salary” before the Lunar New Year. But it is not mandated by law unless it is part of the employee’s contract. Therefore, how you choose to award the bonus is up to you, unless specified within the contract.

Swapnil
Swapnil
1 year ago

As per my employment contract, I am eligible for 5 days leave after completion of 6 months. I have completed 6 months but my employment contract is ended and not renewed. Am I eligible for the payment for 5 days of annual leaves?

Admin
1 year ago
Reply to  Swapnil

In general, when an employee has unused leave at the time of termination, it is paid to the employee. In specific cases, the contract might stipulate the obligations of the employer.

Wesley
Wesley
11 months ago

Hello I would like to know if I worked at a company with a contract that says I work on an average of 9/9.5 hours and after 4 months and 7 days, they terminated my contract. They are only paying me 4 extra days but in accordance to the labor standards, isnt it 10 working days? They are also paying it by hours so if you don’t work, you don’t get paid. I would like to know as from the time I worked here, they have NEVER calculated the salary correctly as they first used a outsourcer from Ukraine and then used a PHP office for the payroll.

Emily Kuhnert
Admin
11 months ago
Reply to  Wesley

Hi Wesley, thank you for your question. Can you please provide more information? How many days a week do you work? The 4 extra days- can you please clarify? Is this meant to be severance or payout for notice?

Janet
Janet
7 months ago

Which holidays in Taiwan should be paid double?

jess
jess
6 months ago

for the severance pay is it on the law of taiwan that employer must pay his or her employee once finished contract?

Larry
Larry
6 months ago

Just want to ask,do i receive benefits from labor insurance?because i had accident during work.it happens on march 1 and im hospitalized for 1 week because they need operation on my wrist and elbow.now im undergoing for my scheduled checkup.

Larry
Larry
6 months ago
Reply to  Erez Greenberg

Sir,yes im covered because i am factory worker in company. Do you have idea if how much will i receive?Because now i was not able to go work for three months.as per doctor advice for my healing process.(they installed three iron plates to my broken bones)

thankyou
5 months ago

The minimum wage that is 25,250 every month with 30 days and what about the month has a 31 days?

John
4 months ago

The minimum wage 25,250NT is base in Gross monthly income or Net monthly income? What if an employee is receiving lower than minimum wage based on her Net monthly income, is this acceptable or considered illegal?

Emily Kuhnert
Admin
4 months ago
Reply to  John

Hi John, thank you for your question. The monthly minimum wage is the gross amount, so as long as what the employee is receiving is equal to or more than this amount before taxes are deducted, this is perfectly legal.

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