Taiwan has a workforce of 12M people. Most professionals are employed in services. Workers are known for high loyalty, leading to long tenures. Unemployment rates are low, at about 3.35%. Around 38.9% of people aged between 25–64 have a bachelor's degree or higher. Over a quarter of these degrees are in engineering, supporting Taiwan's leadership in semiconductors and high-tech manufacturing.
Before expanding into Taiwan, you’ll need to understand contracts, taxes, wages, benefits, and other employment laws. Our guide will tell you everything you need to know about hiring in Taiwan.
What to know before hiring in Taiwan
If you’re expanding your business into Taiwan for the first time, there are important legal requirements to be aware of. These norms and laws influence hiring practices in Taiwan and many aspects of the employer-employee relationship, including compensation and benefits.
G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Taiwan — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.
Here are six things to know about hiring in Taiwan.
1. Languages in Taiwan
Taiwanese Mandarin is the main language used in government, business, and education. Mandarin, Taiwanese Hokkien, Hakka, and the indigenous languages are all considered national languages under the Development of National Languages Act.
Taiwan’s bilingual 2030 policy wants to increase the talent pool’s global competitiveness by improving English proficiency. Taiwanese Hokkien is the most widely spoken language after Mandarin and is often used in daily life. Hakka is spoken by the Hakka ethnic group.
3. Working hours and time off in Taiwan
Standard working hours are 40 hours per week, with a maximum of eight hours per day. Employees get two rest days per week: one mandatory regular day off and one flexible rest day. The flexible rest day can be worked with employee consent and overtime pay. Employees can’t work more than six days without a rest day. Total working hours, including overtime, can’t exceed 12 hours in a single day. Overtime is capped at 46 hours per month. A labor-management agreement can increase overtime to 54 hours per month.
Employees get a 30-minute break after every four hours of work. For shift workers, there has to be at least 11 hours of rest between shifts. This can be reduced to eight hours with union or labor-management approval.
Paid annual leave is based on tenure:
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Six months to one year: three days
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One to two years: seven days
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Two to three years: 10 days
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Three to five years: 14 days
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Five to 10 years: 15 days
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More than 10 years: one extra day per year, capped at 30 days after 25 years of service
Mothers get eight weeks (56 days) of paid maternity leave. If employed for more than six months, they get full pay; if less, they get half pay. Fathers get seven days of paid paternity leave. Employers can apply for a government subsidy for the sixth and seventh days.
Sick leave (non-hospitalized) is up to 30 days per year. This is paid at 50% of the wage. Hospitalized sick leave can be up to one year within a two-year period. The first 30 days are paid at 50%. The remainder is unpaid unless covered by labor insurance. The combined total of ordinary and hospitalized sick leave can’t exceed one year in any two-year period.
Taiwan has 12 national holidays. If a national holiday falls on a rest day, a substitute day off or compensation has to be provided.
Employers have to keep detailed attendance records (including arrival and departure times to the minute) for at least five years.
4. Employment contracts in Taiwan
The Labor Standards Act (LSA) regulates employment relationships in Taiwan. If a Taiwan employee is assigned abroad but the employment relationship is maintained with a Taiwan-based employer, the LSA can still apply.
There are two main types of employment contracts:
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Indefinite-term: This is the default and required for any continuous work, including all part-time and full-time permanent roles.
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Fixed-term: This is only for noncontinuous work, such as temporary, short-term, seasonal, or project work. Using fixed-term contracts for ongoing roles isn’t allowed.
The LSA doesn’t need all employment contracts to be in writing but it's strongly recommended and is best practice. For global employees, written contracts are mandatory. All contracts have to comply with the minimum standards of the LSA. A comprehensive written contract includes:
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Employee’s role and job description
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Expected duties
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Pay expectations and calculation method
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Start date (and end date for fixed-term contracts)
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Vacation and leave entitlements
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Rules of conduct and disciplinary measures
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Termination conditions and severance
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Any other critical information relevant to the employment relationship
5. Compensation and benefits in Taiwan
Under the Labor Standards Act, wages have to be paid at least twice per month unless both parties agree in writing to a monthly or other schedule. As of 2025, the minimum wage in Taiwan is NTD 28,590 per month and NTD 190 per hour.
The cost of NHI is split between the employer (60%), the employee (30%), and the government (10%). The premium rate is 5.17%. Employers have to enroll employees in the NHI on their first day of work.
Labor insurance is mandatory for all employees. Employers pay 70% of the premium, the employee 20%, and the government 10%. Labor insurance covers occupational accidents, disability, death, and maternity benefits.
Employment insurance is mandatory for most employees aged 15–65, with some exceptions. The premium is 1% and split as follows: employer 70%, employee 20%, and government 10%. It provides unemployment, parental leave, and job training benefits.
Employers have to contribute at least 6% of each employee’s monthly wage into an individual pension account under the Labor Pension Act. Employees can make voluntary contributions of up to 6% of their wage.
6. Taxes in Taiwan
Anyone who stays in Taiwan for 183+ days in a calendar year is considered a tax resident. Residents are taxed on their worldwide income. Nonresidents are taxed only on Taiwan-sourced income.
Taiwan uses a progressive income tax system, with rates from 5–40%. For 2025, the brackets are:
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5%: up to NTD 590,000
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12%: NTD 590,001–1,330,000
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20%: NTD 1,330,001–2,660,000
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30%: NTD 2,660,001–4,980,000
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40%: over NTD 4,980,000
The income basic tax (IBT) is an alternative minimum tax and applies only if certain thresholds are met (for example, if a taxpayer has large income from sources such as stock gains, insurance payouts, or international income that is otherwise tax-exempt or taxed at a lower rate). Most ordinary salary earners don’t pay IBT. If the IBT calculation exceeds the regular income tax, the taxpayer pays the higher amount. The IBT rate is 20%.
Employers withhold income tax from employee salaries and remit it to the tax authorities monthly. They have to provide annual withholding statements to both employees and the tax office.
Top hiring hubs in Taiwan
Some cities in Taiwan are known for particular industries. Knowing what each city has to offer allows you to focus your hiring efforts in the right place and fill roles faster.
The top talent hubs in Taiwan are:
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Taipei City is the capital and largest city. Taipei is the main business, finance, and technology center. It hosts the headquarters of multinational corporations, tech companies, and financial institutions.
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New Taipei City surrounds Taipei. New Taipei City is a big industrial and residential area with a large number of manufacturing, logistics, and service sector employers.
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Taoyuan is known for its large industrial parks. Taoyuan is a hub for manufacturing, logistics, and high-tech industries.
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Hsinchu is often called the Silicon Valley of Taiwan. Hsinchu is home to the Hsinchu Science Park. This houses many of the world’s leading semiconductor, electronics, and IT companies.
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Taichung is a major city in central Taiwan. Taichung is a strong manufacturing base known for precision machinery. It's growing in the tech and service sectors.
Key industries in Taiwan
Understanding Taiwan’s main industries allows you to benchmark salaries and benefits. You can use this insight to make smart choices about where to invest and grow your workforce.
The main industries in Taiwan include:
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Semiconductor manufacturing: Taiwan is the world leader in chip manufacturing. Companies like Taiwan Semiconductor Manufacturing Company (TSMC) are important for everything from smartphones to AI data centers.
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Information and communication technology (ICT): This includes the production and export of computers, laptops (Acer, Asus, MSI), components, motherboards, servers, and electronic parts.
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Electronic components: This industry includes the manufacturing of parts like integrated circuits, passive components, and flat-panel displays.
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Machine tools and CNC machinery: Taiwan is a global exporter of high-precision machine tools, which are important for automotive, aerospace, and general manufacturing industries worldwide.
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Automation equipment: This includes the manufacturing of smart machinery and robotics, which is a key focus of government policy to upgrade its industrial base.
Cost of hiring an employee in Taiwan
Whether you’re hiring one employee or an entire team in Taiwan, expenses are inevitable. Budget for the following:
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Entity setup (unless you partner with an employer of record)
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Job advertisements
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Labor costs for applicant review
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Payroll
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Taxes
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Salaries
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Benefits
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Bonuses
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Allowances
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Insurance
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Travel
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Translator (if applicable)
According to G-P Verified Sources from Gia, the employer burden rate in Taiwan, which includes costs triggered on top of salaries, is approximately 18–19%.
What does a company need to hire employees in Taiwan?
Make sure you cover these essentials before expanding your team in Taiwan:
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Choose and register your official company name with the Department of Commerce and Ministry of Economic Affairs (MOEA).
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Notarize the articles of incorporation and, if required, a treasurer’s affidavit or other founding documents.
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Register your company’s physical address in Taiwan.
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Apply for a uniform taxpayer identification number (GUI) with the National Taxation Bureau.
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Register for VAT.
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Open a local bank account.
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Enroll your company and all employees in:
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Labor insurance (mandatory for most employees)
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National health insurance (NHI)
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Labor pension system
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Employment insurance (for eligible employees)
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Draft compliant employment contracts.
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If you have 30 or more employees, submit your company’s work rules to the local labor authority for approval.
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Register as a withholding agent with the tax office and remit withheld taxes monthly.
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Get any necessary business licenses or permits for your sector.
Setting up a Taiwan subsidiary can take weeks or months. Use G-P EOR to hire full-time employees in Taiwan without setting up your own entity. Build your team in Taiwan at a lower cost and with peace of mind that you’re doing so compliantly.
Steps to hiring in Taiwan
The hiring process in Taiwan is similar to the one you’re likely familiar with in your own country. The hiring process follows five basic steps: advertising the job, evaluating applications, interviewing candidates, sending job offers, and onboarding new employees.
1. Advertising job vacancies in Taiwan
Clearly define the role, responsibilities, qualifications, and compensation package. Make sure the job description complies with Taiwan’s anti-discrimination laws. Don’t mention gender, age, or marital status unless legally justified. You must specify the salary range for any job with a regular monthly salary below NT 40,000. Vague terms like “negotiable” are prohibited for these positions.
104 Job Bank and 1111 Job Bank are popular job sites in Taiwan. For certain positions, you’ll have to notify the local public employment service office.
2. Evaluating applications in Taiwan
Collect applications and review resumes. Screen candidates based on their qualifications, experience, and fit for the role.
3. Interviewing candidates in Taiwan
Interview candidates who made it onto your shortlist. You can do these interviews in person or virtually. Use structured, nondiscriminatory interview questions. Gia can help you create questions that follow anti-discrimination laws in Taiwan, so you can find the best fit for the role while complying with local regulations.
For some roles, background checks or reference checks can be performed with candidate consent.
4. Making job offers in Taiwan
Contact your chosen candidate to offer them a position with your company. Prepare a compliant employment contract in Mandarin (and English if needed for international hires). Both parties have to sign the contract before the employment start date.
5. Onboarding new employees in Taiwan
Now you can onboard new employees. Enroll the new employee in labor insurance, national health insurance (NHI), labor pension, and employment insurance on or before their first day of work.
Set up payroll, IT access, and any necessary equipment. Keep copies of the employment contract, personal data, and all required registration documents.
If you’re working with an EOR like G-P™, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture.
Hiring contractors in Taiwan
Working with independent contractors in Taiwan can be a cost-effective way to test the market and build a presence, without the commitment of full-time employees. Contractors based in Taiwan understand local consumer behavior, rules, and business practices. They’ll be ready to start working quickly with their own equipment and established work processes.
Hiring contractors allows you to easily adjust your workforce based on your business needs, without the complexities and costs of employment.
Before you enter an agreement with an independent contractor in Taiwan, consider the following:
1. Employees vs. independent contractors in Taiwan
It’s important to understand the difference between employees and independent contractors. In Taiwan, employers hire employees to do work and, in return, pay them a regular salary and benefits. Independent contractors provide services. Unlike employees, contractors set their schedules, use their own equipment, and work on specific projects rather than having an ongoing role.
2. Penalties for misclassification in Taiwan
Classifying someone as a contractor when they’re not can lead to severe penalties. If misclassification occurs, you’ll have to:
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Face fines ranging from NTD 20,000–1,000,000 for violations of the Labor Standards Act (LSA).
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Back pay all statutory entitlements, including unpaid wages, overtime, and holiday pay.
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Back pay social insurance contributions (labor insurance, national health insurance, labor pension) with interest and possible late fees.
3. How to pay contractors in Taiwan
G-P Contractor™ takes away the messy, time-consuming process of hiring and paying international contractors. You can create and issue contracts and pay contractors with just a few clicks, all while ensuring a compliant process.
Hire employees and contractors in Taiwan with G-P
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Make your expansion to Taiwan easier with G-P. Contact us or book a demo today.
