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.
Hire Employees in Taiwan
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Taiwan
Compliance & Payroll
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
Compliance & Payroll
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
Taxes & Payroll in Taiwan
Employee Income Taxes:
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.
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
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
Employers must pay contributions based on the salary of their employees:
6.35% – Labor Insurance Scheme
5% – National Health Insurance Scheme
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|
Benefits & Insurance in Taiwan
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 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.
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:
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
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.
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.
Types of Leaves in Taiwan
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:
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.
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.
New fathers are entitled to 5 days paid paternity leave after birth.
Public Holidays in Taiwan
There are 8 extended public holidays in Taiwan.