Taiwan Compensation & Benefits
You have many factors to consider when you expand to Taiwan. You’ll need to hire an entire team and set up a locally compliant payroll solution — all while learning all of Taiwan’s compensation laws and deciding on the best benefits for your employees. Globalization Partners can help with our Taiwan benefit management strategy. We will ensure your employees receive guaranteed and additional benefits, and we can add them to our payroll to ensure your complete compliance.
Taiwan Compensation Laws
Taiwan increased its minimum wage from 22,000 NTD per month to 23,100 NTD per month starting on January 1, 2019. This act also increased the hourly minimum wage from 140 NTD to 150 NTD.
Taiwan has strict overtime compensation laws. Employees who are eligible for overtime should receive 133% of their regular pay rate for the first two hours of overtime they work on a workday. The second two hours are paid at a rate of 166%. The laws also stipulate additional regulations if an employee works overtime on a rest day or national holiday. Employers typically require employees to request prior approval from management before working overtime since unpaid overtime wages can make a difference in an employee’s termination.
As you outline a Taiwan benefit management plan, you must include the statutory minimums concerning time off, maternity and paternity leave, health insurance, and similar facets. Taiwan has nine public holidays during which employees receive the day off. All employees also receive paid annual leave based on their number of years of service with the company. For example, employment for more than half a year but less than one year equals three days off, while 10 or more years of employment mandates 15 days plus one additional day for every year of service.
Female employees are entitled to maternity leave before and after childbirth for a total of eight weeks. Women who have worked more than six months for a company receive full pay during maternity leave, while employers who have worked less than half a year are entitled to half pay. Male employees get five days of paid paternity leave.
Taiwan Benefit Management
Another significant aspect of a Taiwan benefit management plan is additional benefits that employees expect but are not mandatory. In Taiwan this can include:
- Leaving service benefits (LSB)
- Life, accident, and business travel insurance
- Housing allowances
- Festival bonuses
- Meal allowances
- Extended medical benefits to the employees’ spouses and dependent children
Restrictions for Benefits and Compensation
Most restrictions for benefits and compensation come from trade unions or collective bargaining agreements (CBAs). Trade unions aren’t common in Taiwan, but you should double check to determine whether your industry or employees are covered by one.
Choose Globalization Partners
When you are ready to expand, you need Taiwan compensation and benefit outsourcing services that will help you succeed. Globalization Partners is here to help you source the right benefits for your company and add your employees to our compliant payroll. Contact us today to learn more.