What does a $60,000 hire cost in Taiwan?
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Full cost breakdown
Statutory contributions and typical benefits for an employee in Taiwan at $60,000 base salary.
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Key Takeaways for Hiring in Taiwan
- Probation periods are not separately regulated under Taiwanese law, and probationary employees have the same protections as permanent staff.
- Payroll runs twice per month, with strict compliance required for labor insurance, health insurance, and pension contributions.
- Employers are legally required to provide year-end bonuses from net profits under the Labor Standards Act.
- Taiwan offers extensive statutory leave entitlements, including annual leave, maternity, paternity, sick leave, and unique protections such as menstruation leave.
Continent
Asia
Capital
Taipei City
Currency
New Taiwan Dollar (TWD)
Language
Mandarin Chinese
Payroll Cycle
Twice per month
Pay Date
Last working day of the month
Taiwan Employment Contract Overview
Below is the core structure we use when preparing compliant employment contracts for hires in Taiwan, aligned with local labour law requirements and standard market practice.
The probation period may be freely determined by both parties, but the terms must be mutually agreed upon in writing typically within the employment contract.
Although there is no statutory maximum, probation periods in Taiwan commonly last up to 3 months. Longer durations are unusual and may be considered unreasonable unless supported by clear justification.
Labor laws do not differentiate between probationary and permanent employees regarding termination. Employers must still provide legitimate grounds for termination, comply with statutory notice periods, and pay severance where required.
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6 months to less than 1 year: 3 days
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Over 12 months: 7 days
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Over 2 years: 10 days
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Over 3 years: 14 days
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Over 5 years: 15 days
For each year of service beyond 10 years, one additional day is added, up to a maximum of 30 days.
- 3 months to 1 year of service: 10 days’ notice
- More than 1 year but less than 3 years of service: 20 days’ notice
- More than 3 years of service: 30 days’ notice
What Do You Need To Include In Taiwan Employment Contract?
An employment contract must clearly state:
Employee Information
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Job responsibilities
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Working hours
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Rest breaks
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Holidays
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Leave entitlements
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How wages are calculated and paid
How Does Payroll Work in Taiwan?
Average employer cost
22.5%
Payroll in Taiwan involves calculating gross salary, deducting employee taxes and social security contributions, and remitting employer-side contributions to the relevant government authorities.
Salary Structure
Salaries in Taiwan are typically paid monthly. Employers are responsible for withholding income tax and employee social contributions at source.
Employer Taxes & Contributions
Employers in Taiwan must contribute to social security and other statutory funds on top of the employee’s gross salary. Specific rates are set by the relevant government authority.
Employee Deductions
Employee-side deductions include income tax and employee social security contributions. The exact rates depend on the employee’s salary level and applicable tax brackets.
Mandatory Employee Benefits in Taiwan
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government | Payroll Contributions | Provides universal healthcare coverage for employees; covers medical treatment, hospitalization, prescription drugs, and preventive care. |
| Pension/Social Security | Government | Payroll Contributions | Provides retirement benefits through individual accounts; accumulates contributions and investment returns for post-retirement payouts. |
| Other Statutory Benefits | Government | Employer | Labor Insurance: Covers disability, injury, maternity, death, and unemployment benefits; provides financial protection for workplace risks and family support. Employer Insurance: Provides unemployment benefits, job training, and career transition support. Year-End Bonus: Pursuant to Article 29 of the Labor Standards Act, employers must distribute year-end bonuses from remaining net profits after completing year-end closing procedures and covering taxes, losses, and required reserves. Eligible employees include those who: worked for the entire preceding year; andH have not engaged in any fault or misconduct. Common practice is granting eligible employees a year-end bonus equivalent to at least 1 month’s salary. Additionally, while not legally mandated, employers commonly provide bonuses for festivals such as Lunar New Year, Dragon Boat, and Moon Festival. |
Leave And Holiday Entitlement In Taiwan
Annual Leave
Employees with at least one year of service with the same employer are entitled to paid annual leave according to their length of service:
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6 months to less than 1 year: 3 days
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Over 12 months: 7 days
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Over 2 years: 10 days
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Over 3 years: 14 days
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Over 5 years: 15 days
For each year of service beyond 10 years, one additional day is added, up to a maximum of 30 days.
Unused annual leave can be carried over to the next year, and if not taken by the end of that year, the employer must compensate the employee for it.
In emergencies, an employer may postpone a worker’s scheduled leave but must pay double the regular wage for work during that period and allow the leave to be taken once the emergency ends.
While employees generally choose when to take their annual leave, employers may negotiate timing if urgent operational needs arise.
Public Holidays
Employees in Taiwan are entitled to the following 12 public holidays:
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January 1: Founding Day of the Republic of China
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February 28: Peace Memorial Day
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May 1: Labor Day
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Spring Festival (three days)
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Children’s Day
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Dragon Boat Festival
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Mid-Autumn Festival
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Lunar New Year’s Eve
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Tomb Sweeping Day (Qingming Festival, lunar calendar)
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National Day
Sick Leave
Regular sick leave is limited to 30 days per year. If hospitalization is required, an employee may take up to one year of unpaid sick leave within a two-year period.
During the 30 days of sick leave, the employee receives half of their regular salary, either fully from the government’s labor insurance fund or partly from the fund and partly from the employer.
If the employer does not cover sick leave, the government fund provides payment starting on the fourth day of illness.
Maternity Leave
Full- and part-time employees are entitled to a mandatory 8-week maternity leave.
In cases of miscarriage, leave is granted as follows: 4 weeks if the miscarriage occurs after 3 months of pregnancy, 1 week if between 2 and 3 months, and 5 days if before 2 months.
Women employed for over 6 months receive their full wages during maternity leave, while those employed less than 6 months receive half pay.
Additionally, a maternity grant equal to 1 month’s earnings is provided after childbirth.
Pregnant employees are entitled to 5 days of leave for medical check-ups with full pay. Employees with a child under 1 year old may take two 30-minute paid breaks for breastfeeding.
Paternity Leave
An employee is entitled to 5 days of paternity leave when their spouse goes into labor.
Other Types of Leave
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Parental Leave:
Employees with children under 3 years old and more than one year of service may take unpaid parental leave for up to two years.
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Employees who have contributed to labor insurance for at least one year may receive 60% of their regular wages for up to 6 months per child.
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If multiple children need care, the allowance is paid for only one child. When both parents take parental leave, the allowance can only be claimed for one child, with separate applications required.
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Upon returning from leave, employers must reinstate employees unless the business is closed, suspended, financially struggling, or has reduced its workforce; in such cases, 30 days’ notice and appropriate severance or retirement pay must be provided.
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Family Leave:
Employers with 6 or more employees must provide paid leave for attending to important family matters, such as caring for a seriously ill relative.
This leave cannot exceed 7 days per year and counts toward regular leave.
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Funeral Leave:
Paid funeral leave is granted as follows:
This leave cannot exceed 7 days per year and counts toward regular leave.
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8 days for the death of a parent, foster parent, stepparent, or spouse
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6 days for the death of a grandparent, child, spouse’s parent, foster parent, or stepparent
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3 days for the death of a sibling, great-grandparent, or spouse’s grandparent.
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Menstruation Leave:
Female employees who have difficulty working during menstruation may take 1 day of leave per month. Up to 3 cumulative days per year are not counted as sick leave; additional days are counted as sick leave. During menstruation leave, employees receive half their regular wage.
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Personal Leave:
Employees may take up to 14 days of unpaid personal leave per year.
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Public Leave:
Employees are entitled to paid leave to fulfill legal obligations.
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Wedding Leave:
Workers receive 8 days of paid leave for their wedding.
Termination and Offboarding in Taiwan
Termination and offboarding in Taiwan are tightly regulated, with strict notice, severance, final pay, and reporting requirements to ensure employee protections are upheld.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Taiwan Employee Resignation
In Taiwan, employees may resign voluntarily, but statutory notice rules and settlement obligations must be followed to ensure a compliant exit.
Notice
Form
Written.
Notice period
Employees are generally required to give the same length of advance notice that the employer would be required to give them, based on length of service.
An employee may resign immediately without notice if any of the following apply:
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The employer provided false or misleading information at the time of contract signing that could harm the employee
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The employer, a family member, or an agent commits a violent act or severely insults the employee (unless the agent has already been dismissed)
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The work poses a serious health risk and the employee has unsuccessfully requested improvements to working conditions
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The employer, an agent, or a coworker has a harmful contagious disease (unless they have already been hospitalized or dismissed)
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The employer fails to pay wages as agreed or does not provide sufficient work for a piece-rate employee
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The employer violates the employment contract or labor law in a way that is likely to negatively affect the employee’s rights
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Payment in lieu of notice or notice waiver: Alternatively, the employee may compensate the employer by paying wages equivalent to the applicable notice period
Payment in lieu of notice or notice waiver
Employees may request to waive the notice period, or employers may offer payment in lieu of notice, calculated based on the employee’s gross salary corresponding to the required notice duration.
End-of-Service Benefits
Severance/Gratuity
Employees covered by the Labor Pension Act are entitled to employer pension contributions accumulated in their personal pension account. These funds may be withdrawn upon retirement, job change, or reaching eligibility age.
Other Benefits
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Unused annual leave must be compensated in cash if not taken before resignation
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All earned wages, overtime, and bonuses must be paid in full on the final day of employment or within the legally specified timeframe
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Employees enrolled in Labor Insurance or Employment Insurance may qualify for unemployment benefits, subject to eligibility requirements
Termination Documentation
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The employer must issue a certificate of employment termination upon the employee’s request
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The employer must report the termination to the local labor office and relevant insurance agencies (Labor Insurance, National Health Insurance, Labor Pension)
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The employee may request a statement of service and proof of insured records for benefit claims or reemployment purposes
Employer Termination With Cause in Taiwan
Acceptable grounds
An employer may dismiss an employee for just cause if the employee:
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Provided false or misleading information when signing the employment contract that could harm the employer
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Committed a violent act or seriously insulted the employer, the employer’s family, an agent, or a coworker
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Was imprisoned following a final court judgment
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Seriously violated the employment contract or workplace rules
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Intentionally damaged or misused the employer’s machinery or property
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Willfully disclosed technical or confidential information, causing harm to the employer
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Was absent from work for three consecutive days or six days within a month without valid justification
Notice
Form
Written notice stating the reason and effective date.
Notice period
Immediate dismissal without notice is permitted for just cause.
Payment in lieu of notice or notice waiver
Not applicable.
End-of-Service Benefits
Severance
No severance is required for termination with just cause.
Other Benefits
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All wages and payments for work performed up to the termination date must be settled in full
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Any unused and accrued annual leave must be compensated unless forfeited under applicable law and company policy
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Labor Insurance and National Health Insurance coverage must be reported for cancellation on the termination date
Termination Documentation
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Written termination notice specifying the reason and date of dismissal
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Notification to the local labor authority within the legally required period
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Certificate of employment termination and proof of insurance participation provided upon request
Employer Termination Without Cause in Taiwan
Acceptable Grounds
Except in cases of just cause, an employer may terminate an employment contract only if the employee is unable to adequately perform their job duties.
Notice
Form
Written notice stating the reason, effective date, and applicable notice period.
Notice period
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3 months to 1 year of service: 10 days
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More than 1 year but less than 3 years: 20 days
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More than 3 years: 30 days
Payment in lieu of notice or notice waiver
The employer may terminate immediately by paying wages equivalent to the notice period. The employee may also agree in writing to waive all or part of the notice.
End-of-Service Benefits
Severance
Employees terminated without cause are entitled to severance under one of the following systems:
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Labor Standards Act (old system): Half a month’s average wage for each year of service (pro-rated)
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Labor Pension Act (new system): Employer contributions equal to 6% of salary paid into the employee’s individual pension account
The applicable system depends on whether the employee remained under the old scheme or opted into the new pension system after July 1, 2005.
Other Benefits
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All earned wages, unused annual leave, overtime, and bonuses must be paid in full on the final working day or within the legally specified period
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Employers must report the termination to Labor Insurance, National Health Insurance, and Labor Pension authorities
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Eligible employees may claim unemployment benefits under Employment Insurance
Termination Documentation
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Written termination notice and certificate of employment termination.
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Reporting to labor authorities and insurance agencies.
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Proof of employment and contribution records provided for future employment or benefit claims.
Mutual Termination Agreements in Taiwan
A mutual termination agreement allows both employer and employee to voluntarily end the employment relationship on agreed terms. While not treated as a dismissal or resignation under the Labor Standards Act, employee statutory rights must still be respected.
Notice
Form
Written agreement signed by both parties, clearly stating the termination date and settlement terms.
Notice period
Not required unless agreed.
Waiver of notice
Allowed with written consent from both parties.
End-of-Service Benefits
Severance
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If initiated by the employer, severance generally applies under the Labor Standards Act or Labor Pension Act
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If initiated by the employee, severance is not required unless agreed in writing
Other Benefits
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All unpaid wages, unused leave, overtime, and bonuses must be settled
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Employees retain the right to withdraw accumulated pension funds if eligible
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Employers must close all social insurance accounts
Termination Documentation
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Signed mutual termination agreement retained by both parties.
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Termination certificate and reporting to labor and insurance authorities.
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Proof of employment and insurance participation provided upon request.
Offboarding Process for theEnd of Fixed-Term Contracts in Taiwan
Final Payment Timing & Immigration and Visa Compliance in Taiwan
Final Payment Deadline
Employers must pay all outstanding wages, bonuses, unused annual leave compensation, and other owed amounts on the employee’s final working day or no later than the contract termination date, as required under the Labor Standards Act.
If immediate payment is not possible, settlement must be completed within a short agreed period that does not exceed the employer’s regular pay cycle.
Penalty
Late or unpaid wages may result in fines, interest, or compensation orders issued by labor authorities.
Visa and Immigration Compliance
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Employers must notify the National Immigration Agency (NIA) and the Ministry of Labor Workforce Development Agency (WDA) within three days of employment termination
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Work permits and residence visas are tied to employment and become invalid upon termination. The employee’s Alien Resident Certificate (ARC) is canceled
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Foreign employees typically have a short grace period (commonly 14 days) to leave Taiwan or transfer to a new employer if eligible
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A new employer must secure a new work permit before employment begins
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Departing employees should settle tax obligations and obtain a tax clearance certificate from the National Taxation Bureau to avoid immigration issues
Supporting Guides
Frequently Asked Questions
What are the notice and severance rules if I need to let someone go?
Notice scales with tenure: 10 days for three months to one year of service, 20 days for one to three years, 30 days for over three years.
Severance is mandatory for terminations without cause: half a month’s average wage per year of service (old system) or 6% of salary into the employee’s pension account (new system). Termination without cause requires the employee to be unable to adequately perform their duties.
Do I need to set up a legal entity to hire in Taiwan?
Not if you use an Employer of Record like RemotePass. An EOR acts as the legal employer, handling payroll, compliance, and contracts while you manage day-to-day work.
What’s the minimum wage in Taiwan?
TWD 29,500 per month, effective January 1, 2026.
Are year-end bonuses mandatory in Taiwan?
Yes. Employers must distribute bonuses from remaining net profits after year-end closing. Standard practice is at least one month’s salary for eligible employees who worked the full preceding year without fault or misconduct.
What happens to work permits when employment ends?
Employers must notify immigration authorities within three days. Work permits and residence visas become invalid upon termination, and foreign employees typically have 14 days to leave Taiwan or transfer to a new employer.
