With its strong tech sector and highly educated workforce, Taiwan is an attractive hiring destination for global employers. Success depends on understanding the local regulatory framework and operating confidently across language differences. 

That’s where a Taiwan employer of record (EOR) can help. Use an EOR, like G-P, to hire top talent in 180+ countries, including Taiwan, without setting up a legal entity. We handle everything, including payroll and benefits, so you can grow your business instead of worrying about compliance.

Simplify hiring in Taiwan with an employer of record

The Labor Standards Act (LSA) sets many employment regulations in Taiwan. The Civil Code covers anything that isn’t covered by the LSA. 

Partnering with a Taiwan EOR is the fastest way to build a team while staying compliant. We manage local employment requirements and risks, so your business follows the LSA and Civil Code. 

The EOR hiring process in Taiwan

  1. Partner with a global employment expert. Choose an EOR Taiwan with deep, in-country expertise as they’ll guide you through the local legal landscape.

  2. Source your ideal candidate. You find the best talent for your needs, and the EOR handles the rest of the employment process.

  3. Generate a compliant employment contract. Your EOR drafts a locally compliant contract that reflects all mandatory terms under the LSA and Civil Code, including salary, working hours, and notice periods.

  4. Onboard and manage your team. The EOR manages all aspects of the employment lifecycle. This includes registering the employee with Taiwan’s tax authorities, processing payroll, and administering benefits.

Employment contracts in Taiwan

We recommend using written employment contracts, even though it’s not required by law in all cases. An offer letter and employment contract must state the salary and any compensation in Taiwan dollars (TWD).

There are two contract types in Taiwan:

  1. Indefinite-term: This is an agreement without an end date. It’s the standard for ongoing employment.

  2. Fixed-term: This covers temporary work up to six months, seasonal work up to nine months, or projects with a set length. Fixed-term contracts longer than one year must be reported to the local labor authority. This improves oversight and prevents misuse of fixed-term arrangements for roles that should be indefinite-term under the LSA.

Employers with 30 or more employees must write work rules and submit them to the local labor authority for registration.

An EOR Taiwan, like G-P, acts as the legal employer for your global team members. We draft compliant contracts that meet Taiwan’s legal standards, employment terms and conditions, and best practices. 

Leave entitlements in Taiwan

Working hours in Taiwan

The standard workweek is 40 hours over five days, with an eight-hour workday. Anything over this is overtime. Employees can’t work more than 12 hours in a single day or 48 hours in a single week. They can’t work more than 46 hours of overtime per month.

Overtime is paid at the following rates:

  • For the first two hours of overtime on a standard workday, the rate is 1.34 times normal hourly pay. 

  • For the next two hours, the rate is 1.64 times normal hourly pay. 

  • Work on a rest day is more complex and employees get higher pay for each hour worked. Employers can also give extra leave instead of overtime pay.

Overtime rules don’t apply to some roles, and different criteria may apply in specific industries. 

Public holidays in Taiwan

Taiwan-based employees usually get 12 public holidays, but this can vary. Main holidays include:

  • ROC Founding Day

  • Lunar New Year (typically 3-4 days)

  • 228 Peace Memorial Day

  • Children’s Day and Tomb-sweeping Day

  • Labor Day

  • Tuen Ng (Dragon Boat) Festival

  • Mid-Autumn Festival

  • National Day

The government’s annual calendar sets substitute rest days when holidays fall on a weekend.

Vacation days in Taiwan

Employees get paid annual leave based on years of service:

  • Six months to one year of service: Three days

  • One to two years of service: Seven days

  • Two to three years of service: 10 days

  • Three to five years of service: 14 days

  • Five to 10 years of service: 15 days

  • 10+ years of service: An extra day per year of service, up to a maximum of 30 days

Sick leave in Taiwan

Employees can take up to 30 days of ordinary (non-hospitalized) sick leave per year, paid at 50% of their regular salary. 

They can take up to one year of hospitalized sick leave every two years. This leave is generally unpaid unless the employee has labor insurance sickness benefits. If the labor insurance benefit is less than 50% of the employee’s salary, the employer must make up the difference so that the employee gets at least 50% of their salary while in hospital.

Employees can’t take more than one year of ordinary and hospitalized sick leave within a two-year period.

Maternity and paternity leave in Taiwan

A pregnant employee gets eight weeks of paid maternity leave. Employees with more than six months of service get full pay, while those with less than six months get 50% of their salary. A pregnant employee also gets seven days of prenatal check-up leave. 

Under the Act of Gender Equality in Employment, employees get five days of paid paternity leave to be taken within 15 days of the child’s birth. Fathers get full pay during this time. 

Employers pay for these maternity and paternity leave benefits.

How an employer of record helps manage leave entitlements in Taiwan

There’s no need for you to manage employee working hours and leave in line with Taiwan law — a Taiwan EOR does it for you. EORs also handle maternity, paternity,and sick leave, so you stay compliant.

Health insurance in Taiwan

The National Health Insurance (NHI) provides health insurance benefits to employees and eligible dependents, including: 

  • Inpatient and outpatient care 

  • Emergency services 

  • Prescription medications 

  • Dental care 

  • Traditional Chinese medicine 

  • Preventive healthcare 

All employees must be enrolled in NHI from their first day of employment. Employers register employees and handle contributions.

Many employers offer additional private health insurance, but this is not required by law.

Supplementary benefits and bonuses in Taiwan

Many companies offer supplementary benefits to attract top talent. For example, a tax-free meal allowance of up to TWD 3,000 per month is common. 

Guaranteed bonuses, such as a 13th- or 14th-month salary, are also common and paid before the Lunar New Year. Festival bonuses for the Lunar New Year, Dragon Boat Festival, and Mid-Autumn Festival are customary. 

How an employer of record helps with benefits in Taiwan

An employer of record Taiwan manages supplementary benefits and bonuses on your behalf. They’ll ensure you offer competitive packages that comply with Taiwan labor law.  

Termination and severance in Taiwan

Employers must give a reason for dismissal. Employees don’t need a specific reason to resign as long as they give proper notice:

  • 10 days’ notice if employed for more than three months but less than one year 

  • 20 days’ notice if employed for 1–3 years

  • 30 days’ notice if employed for more than three years

Employers must give advance notice and severance pay for dismissals based on business reasons or employee performance issues. Notice periods range from 3–30 days, depending on the employee's length of service. Employees get two days of paid leave per week during the notice period to look for another job.

Dismissal without notice or severance is only allowed for serious misconduct, like a major contract violation or being absent from work for three days in a row without a valid reason. 

A Taiwan EOR supports a compliant and respectful offboarding process. EORs manage everything from notice requirements to severance, keeping the process legally sound.

Payroll and payroll taxes in Taiwan

Taiwan uses a progressive income tax system. Employers withhold income tax and social security contributions from employee salaries and remit them to the relevant authorities. 

An employee’s "insured salary" is the salary registered with government authorities. This is used to calculate social insurance contributions and isn’t always the same as an employee’s gross salary. 

It’s set based on government-issued salary grading tables. Employers must report each employee’s insured salary within these prescribed ranges. 

Taiwan's social security system includes:

  • NHI: Provides universal healthcare coverage. The premium is 5.17% of the employee’s insured salary. Employers pay 60%, employees pay 30%, and the government pays 10%. 

  • Labor insurance (LI) and employment insurance (EI): Covers various benefits, including retirement, disability, and unemployment. The combined rate is 12.5% of the employee’s insured salary. The employer pays 70% of the premium.

  • Labor pension: Employers pay at least 6% of an employee's salary into a personal pension account.

  • Labor occupational accident insurance: Funded by the employer. Rates vary by industry, but 0.2% is the average.

An EOR Taiwan handles all aspects of payroll, including these calculations and payments to ensure full compliance.

How to choose the right EOR in Taiwan

Consider these factors when selecting an EOR in Taiwan: 

  • Compliance expertise: Your EOR must have a deep understanding of Taiwanese labor laws and requirements, including the Labor Standards Act and local tax regulations. 

  • Comprehensive service offering: The right partner offers a range of global employment products and EOR solutions. Our global employment platform delivers everything you need to manage the employee lifecycle, from drafting compliant employment contracts and managing payroll to administering benefits and offboarding.

  • Technological capabilities: Confirm that the EOR integrates with your existing HCM, PEO, or payroll systems to avoid operational delays. 

  • Transparent cost structure: Look for transparent costs so you can accurately budget for your global employment goals.

  • Reputation and industry leadership: Research the EOR's market reputation. G-P is the recognized leader in global employment and is ranked #1 according to all industry analyst reports. Customer testimonials and case studies are also important when choosing an EOR.

Use G-P EOR for global hiring in Taiwan

G-P EOR is the award-winning, AI-enabled global hiring solution that empowers startups, SMBs, and enterprise businesses to build global teams with ease. G-P EOR handles everything from onboarding to paying top talent in over 180 countries. With us, you bypass the complexity of local entity setup. 

G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.

Request a proposal to start hiring in Taiwan today.