Country Payroll Guide Taiwan

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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.