Hire in Taiwan

Taiwan PEO &

Employer of Record

Hire & manage teams remotely in Taiwan without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Chinese, English

Salary Currency

New Taiwan Dollar (TWD)

Payroll tax

17.152%

Payroll Cycle

Monthly

Time zone

UTC +8

Capital city

Taipei

Hire Employees in Taiwan

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Taiwan complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Taiwan

Employer of Record (EOR) services are for companies who do not have a legal entity in Taiwan, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Taiwan.

02.

Employee Onboarding

We sign a local labor contract with your employees based in Taiwan.

03.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Taiwan.

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Taiwan.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Taiwan

Professional Employment Organization (PEO) services are for companies who have a legal entity in Taiwan, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Taiwan.

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Taiwan.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

Taiwan individual income tax guide

Taxes & Payroll in Taiwan

Employee Income Taxes:

Individual income tax rates in Taiwan are based on progressive tax brackets.

A worker who works in Taiwan is taxed on salaries, bonus, commissions, regardless of where the payment is made. The tax varies depending deductions based on family conditions which includes dependent of parent and child, single or married, tuition, investment savings, long-term care, and etc.

Tax Brackets

5%: 0 – 540,000 TWD
12%: 540,001 – 1,210,000 TWD
20%: 1,210,001 – 2,420,000 TWD
30%: 2,420,001 – 4,530,000 TWD
40%: >4,530,000 TWD

Sample Calculation

Yearly income = 2,000,000 TWD
20% * 790,000 = 158,000
12% * 680,000 = 81,600
5% * 540,000 = 27,000
158,000+81,600+27,000 = 266,600

Yearly income tax = 266,600 TWD

Employer Costs in Taiwan

Employer Contribution

Employers must pay contributions based on the salary of their employees:

6.35% – Labor Insurance Scheme
5% – National Health Insurance Scheme

Social Security

The mandatory statutory insurance includes National Health Insurance, Labor Insurance and Pension.

2nd Generation Health Insurance-employer contribution (2G HI ER) is charged when gross salary exceeds the insurance grading. If 2G HI ER ≦0 is consider as $0. The 2G HI ER happens only when there are bonus, overtime or other items that increase the gross salary.

Social contribution table for 2021 showing contribution for Employer and Employee:

   Health Insurance  Labour Insurance  Pension
   Salary Level  Employee  Employer  Employee  Employer  Employer
1            11,100                –               –             255            905            666
2            12,540                –               –             288         1,023            752
3            13,500                –               –             311         1,101            810
4            15,840                –               –             365         1,291            950
5            16,500                –               –             380         1,346            990
6            17,280                –               –             398         1,408         1,037
7            17,880                –               –             411         1,457         1,073
8            19,047                –               –             438         1,552         1,143
9            20,008                –               –             460         1,631         1,200
10            21,009                –               –             483         1,712         1,261
11            22,000                –               –             506         1,793         1,320
12            23,100                –               –             531         1,883         1,386
13 24,000             372         1,176             552         1,956         1,440
14            25,200             391         1,235             579         2,053         1,512
15            26,400             409         1,294             607         2,151         1,584
16            27,600             428         1,353             635         2,250         1,656
17            28,800             447         1,412             663         2,348         1,728
18            30,300             470         1,485             697         2,469         1,818
19            31,800             493         1,559             732         2,592         1,908
20            33,300             516         1,632             766         2,714         1,998
21            34,800             540         1,706             801         2,837         2,088
22            36,300             563         1,779             835         2,958         2,178
23            38,200             592         1,872             878         3,113         2,292
24            40,100             622         1,965             922         3,268         2,406
25            42,000             651         2,058             966         3,423         2,520
26            43,900             681         2,152          1,010         3,578         2,634
27 45,800             710         2,245          1,054         3,733         2,748
28            48,200             748         2,362          1,054         3,733         2,892
29            50,600             785         2,480          1,054         3,733         3,036
30            53,000             822         2,598          1,054         3,733         3,180
31            55,400             859         2,715          1,054         3,733         3,324
32            57,800             896         2,833          1,054         3,733         3,468
33            60,800             943         2,980          1,054         3,733         3,648
34            63,800             990         3,127          1,054         3,733         3,828
35            66,800          1,036         3,274          1,054         3,733         4,008
36            69,800          1,083         3,421          1,054         3,733         4,188
37            72,800          1,129         3,568          1,054         3,733         4,368
38            76,500          1,187         3,749          1,054         3,733         4,590
39            80,200          1,244         3,931          1,054         3,733         4,812
40            83,900          1,301         4,112          1,054         3,733         5,034
41            87,600          1,359         4,293          1,054         3,733         5,256
42            92,100          1,428         4,514          1,054         3,733         5,526
43            96,600          1,498         4,735          1,054         3,733         5,796
44          101,100          1,568         4,955          1,054         3,733         6,066
45          105,600          1,638         5,176          1,054         3,733         6,336
46          110,100          1,708         5,396          1,054         3,733         6,606
47          115,500          1,791         5,661          1,054         3,733         6,930
48          120,900          1,875         5,926          1,054         3,733         7,254
49          126,300          1,959         6,190          1,054         3,733         7,578
50          131,700          2,043         6,455          1,054         3,733         7,902
51          137,100          2,126         6,719          1,054         3,733         8,226
52          142,500          2,210         6,984          1,054         3,733         8,550
53          147,900          2,294         7,249          1,054         3,733         8,874
54 150,000          2,327         7,352          1,054         3,733         9,000
55          156,400          2,426         7,665          1,054         3,733         9,000
56          162,800          2,525         7,979          1,054         3,733         9,000
57          169,200          2,624         8,293          1,054         3,733         9,000
58          175,600          2,724         8,606          1,054         3,733         9,000
59          182,000          2,823         8,920          1,054         3,733         9,000

Benefits & Insurance in Taiwan

Pension Fund

In Taiwan, the pension system consists of several different funds that provide retirement benefits to the country’s workforce. The main pension funds in Taiwan include the Labor Insurance Fund, the Public Service Pension Fund, and the Labor Pension Fund. Here’s a brief overview of each:

Labor Insurance Fund: The Labor Insurance Fund is a mandatory pension scheme for employees in Taiwan’s private sector. Both employers and employees contribute a certain percentage of the employee’s salary to the fund. The contributions are based on a progressive scale, with higher-income earners contributing a larger percentage. The fund provides retirement, disability, survivor, and medical benefits to insured individuals.

Public Service Pension Fund: The Public Service Pension Fund covers civil servants, public school teachers, and military personnel in Taiwan. It is a defined benefit plan where retirement benefits are based on the employee’s years of service and salary history. Both the employees and the government contribute to the fund. The retirement benefits are typically higher than those provided by the Labor Insurance Fund.

Labor Pension Fund: The Labor Pension Fund is a mandatory retirement savings plan introduced in 2005. Under this system, employers are required to contribute a certain percentage of the employee’s salary to the fund. Employees can also make voluntary contributions. The contributions are individually owned accounts and are invested in various financial instruments. The accumulated amount, along with the investment returns, provides retirement benefits to the employees.

These pension funds aim to provide financial security and support to retired individuals in Taiwan. The funds are managed by government agencies and are subject to regulations and oversight to ensure the sustainability and stability of the pension system.

Healthcare Insurance

Healthcare insurance in Taiwan is primarily provided through the National Health Insurance (NHI) program. Here’s a brief overview of healthcare insurance in Taiwan:

National Health Insurance (NHI): The NHI program was introduced in Taiwan in 1995 and is a mandatory healthcare insurance system. It covers the entire population, including citizens, residents, and foreigners residing in Taiwan for more than six months. The program is administered by the Bureau of National Health Insurance (BNHI).

Funding: The NHI is funded through a combination of contributions from insured individuals, employers, and the government. Insured individuals and their employers contribute a percentage of their salary to the program, while the government provides additional funding to ensure its sustainability. The contribution rates are based on income and are subject to periodic adjustment.

Coverage and Benefits: The NHI provides a comprehensive range of healthcare services, including outpatient visits, inpatient care, prescription drugs, preventive care, and emergency treatment. The coverage extends to a wide range of medical specialties and treatments, including traditional Chinese medicine. The program also includes coverage for catastrophic illnesses and conditions.

Access and Provider Network: The NHI has established an extensive network of healthcare providers, including hospitals, clinics, and pharmacies throughout Taiwan. Insured individuals can choose their healthcare providers from this network, and they have the freedom to switch providers if desired. The program ensures accessibility to healthcare services across the country, including both urban and rural areas.

Co-payments: While the NHI covers a significant portion of healthcare costs, insured individuals are required to make co-payments for certain services. Co-payment amounts vary based on the type of service and the insured individual’s income level. Low-income individuals and vulnerable populations may be eligible for reduced or waived co-payments.

Quality and Regulation: The NHI program places emphasis on quality healthcare delivery and cost control. The BNHI regulates the healthcare system, sets fee schedules, negotiates with healthcare providers, and implements measures to control healthcare costs. Quality assurance and performance evaluation programs are in place to ensure the provision of high-quality healthcare services.

Bonus And Allowances

Bonus is not mandatory benefit. You can choose to give the staff bonus or not entirely on company’s policy. Usually the amount is based on candidate’s performance. The bonus amount could be calculated by percentage according to certain incentive plan or simply calculated as extra 1 to 3-month salary in different cases.

Meal allowance: In local practice, employee will have a quota by NT 2,400/month paid as meal allowance and this will not be the taxable income. This is a benefit that employer would offer employees.

Festival allowance: This is for Chinese New Year, Dragon-boat festival and Mid-autumn festival, the amount depends on employer.

Insurance: Group insurance scheme for extra hospital and surgical insurance for example; the insurance plan can be customized as request and the premium will be charged by actual cost.

PEO in Taiwan

Working Hours in Taiwan

Working Hours Per Week

An employee can work no more than eight hours a day (not including overtime) and no more than 40 hours per week, and must have at least two rest days every seven days, with one mandatory day off and one flexible rest day. An employee cannot agree to work on the mandatory day off.

Termination Laws in Taiwan

Employers in Taiwan can only terminate a labor contract when one of the following situations arises:

  • When the employers’ businesses are suspended or have been transferred.
  • When the employers’ financials require long-term budget cuts.
  • When a force majeure event requires the suspension of business for more than one month.
  • When the change of the nature of business necessitates the reduction of workforce and the terminated employees cannot be reassigned to other suitable positions.
  • When a particular worker is clearly not able to perform satisfactorily the duties required of the position held. {for example: through the PIP process (with a written document), if the employee didn’t make any improvement or achieve the agreed target in the appointed period, the employer can lay off the unqualified employee. Compensation still needs to be provided to employees in this case.

    Severance

    The severance pay is paid based on workers’ seniority; an equivalent of half a month of the average wage for every full year of employment, and in proportion for employment less than one full year.

  • Employment Contract in Taiwan

    Employment Contract

    Labor contracts may be divided into two categories:

    fixed term contract:
    A) Temporary work shall mean work of an unexpected and non-continuous nature, and is not to exceed 6 months.
    B) Short-term work shall mean work of a non-continuous nature that is expected to be completed within a short period of time and is not to exceed 6 months.
    non-fixed term contract: a contract for continuous work
    In any one of the following situations, a fixed term contract shall be deemed as to be a non-fixed term upon the expiration of the contract:

    Where an employer raises no immediate objection when a worker continues his/her work.
    Where, despite the execution of a new contract, the prior contract and the new one together covers a period of more than 90 days and the period of time between expiration of the prior contract and execution of the new one does not exceed 30 days.
    In any of the following situations, a worker shall not claim from the employer either additional wages for the advance notice period or severance pay:

    If the employee resigns.
    If the employee leaves his/her service upon expiration of a fixed term contract. In this case, the employee must willingly choose to not renew the contract under identical terms. If the employer chooses to not renew the contract, then severance is required.
    And vice versa.

    Probation Period

    There are no regulations on probation periods in Taiwan. It depends on the agreement between employee and employer. Employees on probation share the same employment protections as regular employees and cannot be “fired at will”. There must be justifiable reason behind terminating an employee regardless of whether he/she is on probation or not.

    Taiwan PEO and employer of record

    Types of Leaves in Taiwan

    Annual Leave

    Employees in Taiwan who have worked continually for the same employer or business entity for a certain period of time shall be granted annual paid leaves on an annual basis based on the following conditions:

  • 3 days: after serving 6 months and not exceeding 1 year
  • 7 days: serving over 1 year and not exceeding 2 years
  • 10 days: serving over 2 years and not exceeding 3 years
  • 14 days every year: serving over 3 years and not exceeding 5 years
  • 15 days every year: serving over 5 years and not exceeding 10 years
  • Additional 1 day (up to 30 days in total): over 10 years

    Sick Leave

    For the non-hospitalized, workers can apply for sick leave for a total of less than 30 days in one year. No carry forward issue.

    Maternity Leave

    Employers are required to grant new mother female employees maternity leave as follows:

    Normal delivery: 8 weeks maternal leave (minimum of 4 weeks after childbirth). If the employee has worked for the company for more than 6 months then she is paid full salary. If the employee has worked for the company less than 6 months then she is paid half salary.
    Miscarriage after 3 months or longer: 4 weeks maternal leave. Full pay if the employee has been employed for longer than 6 months. Half pay if the employee has been employed less than 6 months.
    Miscarriage after 2 months: 1 week of unpaid maternal leave.
    Miscarriage after less than 2 months: 5 days of unpaid maternal leave.
    Leave for pregnancy checkups: 5 days full paid leave for each instance.

    Paternity Leave

    New fathers are entitled to 5 days paid paternity leave after birth.

  • Public Holidays in Taiwan

    Public Holidays

    There are 8 extended public holidays in Taiwan.

  • Lunar New Year holiday (Feb. 10-16)
  • 228 Peace Memorial Day (Feb. 27-March 1)
  • Children’s Day and Tomb Sweeping Festival (April 2-5)
  • Dragon Boat Festival (June 12-14)
  • Mid-Autumn Festival (Sept. 18-21)
  • National Day holiday (Oct. 9-11)
  • 2022 New Year holiday (Dec. 31-Jan. 2)
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