Country Payroll Guide Taiwan
We deliver secure, compliant, accurate and touchless global payroll for Taiwan.
Key Facts
- Capital
- Taipei
- Date format
- yyyy/mm/dd
- Currency
- New Taiwan Dollar (TWD)
- VAT
- the standard rate is 5%
Contributions
Employers
- Labour Insurance
- Labour Insurance - 7.35%
- Employment Insurance
- Employment Insurance - 1% to 2%
- Pension Fund
- Pension Fund - 6%
- Health Insurance
- Health Insurance - 3.1%
- Total Employment Cost
- Total Employment Cost - 18.45%
Employees
- Labour Insurance
- Labour Insurance - 2.1%
- Health Insurance
- Health Insurance - 1.55%
- Total Employee Cost
- Total Employee Cost - 3.65%
Minimum Wage
- Minimum Wage
- The minimum wage in Taiwan is 160 TWD per hour
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
Not required by law.
Income Tax
- Employee Income Tax (1)
- Up to 540000 TWD - 5%
- Employee Income Tax (2)
- 540000 - 1210000 TWD - 12%
- Employee Income Tax (3)
- 1210000 - 2420000 TWD - 20%
- Employee Income Tax (4)
- 2420000 - 4530000 TWD - 30%
- Employee Income Tax (5)
- 4530000 - 10310000 TWD - 40%
Working Hours
- General Working Hours
40 hours per week.
- Overtime
Maximum of 46 (overtime) hours a month.
Leave
- Paid Time Off
- 3 days after 6 months of service.
- 7 days after a completed year.
- 10 days after 2 years.
- 14 days after 3 years.
- 15 days after 5 years.
1 additional day is given every year after 10 years.
The maximum annual leave is 30 days.
- Public Holidays
12 public holidays.
- Sick Days
30 days annually.
- Maternity Leave
8 weeks (100% paid).
- Paternity Leave
5 days (100% paid)
- Parental Leave
Can be taken if the parent has worked with the company for at least 6 months. The child must be under 3 years of age.
- Other Leave
Bereavement Leave
- Spouse or parent – 8 days
- Grandparent, parent-in-law, or child – 6 days
- Sibling or grandparent-in-law – 3 day
Termination
- Termination Process
Reasonable cause must be proven.
- Notice Period
- 10 days notice for 3 months – 1 year
- 20 days notice for 1 year – 3 years.
- 30 days notice – 3 or more years of service.
- Severance Pay
Equal to one month of average wages for each year of service (individuals who began employment before 2005) and calculated based on one month’s average wages for each year of service. The amount that the company pays for each year of service is equal to 50% of the employee’s average monthly salary.
- Probation Period
No legal requirement. 3 months is common.
Visa
- Employment Visa
A work and residency visa must be obtained for individuals who are not residents of the country.
