PEO/Employer Of record in Taiwan

Hire staff in Taiwan while we manage all employment and HR operations. No local company is needed! 

PEO/Employer of Record in Taiwan - Hire Employees Compliantly

We are a Professional Employer Organization (PEO) that provides Employer of Record services in Taiwan, also known as “employment solutions” or “PEO solutions”.

Many companies opt to outsource their employment to minimize costs and legal risk when expanding their business operations in Taiwan.

We can help foreign companies navigate through Taiwanese employment laws and requirements, saving you time so you can focus on core business activities.

While all employment, HR, administrative and legal matters are outsourced to us, you are able to have a physical presence in Taiwan without the need to set-up a legal entity.

Entity Not Required

Foreign clients do not need to register a legal entity in Taiwan when using PEO services.

100% compliant

We strictly follow official compliance guidelines to ensure a safe legal environment for all clients.

Fast Market Entry

We will help you to hire and onboard employees within one week.

Complete PEO package for efficient and compliant employment

On-board staff in Taiwan without any risks

Employment and payroll regulations in Taiwan

Employment contracts

Labor contracts may be divided into two categories:

  1. fixed term contract:
  2. A) Temporary work shall mean work of an unexpected and non-continuous nature, and is not to exceed 6 months.
  3. 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.
  4. 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:

  1. Where an employer raises no immediate objection when a worker continues his/her work.
  2. 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:

  1. Worker resigns.
  2. The worker leaves his/her service upon expiration of a fixed term contract.

And vice versa.

Working hours

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.

Annual leave

The annual leave will be entitled up to a maximum of 30 days. You may find relevant regulations, in compliance with Taiwan labor law, as below.

A worker who has 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

The employer shall grant female employee maternity leave as follows:

Leaves

Weeks / Days

Wages

Maternity Leave

before and after childbirth

a combined period of 8 weeks

(at least 4 weeks after childbirth)

If employed more than 6 months: full paid

If employed less than 6 months: half paid

miscarriage after being pregnant for more than 3 months

4 weeks

miscarriage after being pregnant for over 2 months and less than 3 mths

1 week

Not paid. (but cannot be deemed as absent)

miscarriage after being pregnant for less than 2 months

5 days

Leave for pregnancy checkups

5 days

Full paid

Spouse paternity leave

5 days

Full paid

Public holidays

The eight extended public holidays according to the administration

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) and 

2022 New Year holiday (Dec. 31-Jan. 2).

Probation period

There is no certain regulation for probation in local practice. It depends on the agreement between employee and employer. Probation can be only a check point for performance reviewing. Thus if the employee’s performance is not as expected during probation, it is not easy to lay off the employee directly. Certain processes as PIP and compensation should be provided to employees.

Termination and severance pay

The employer could only terminate a labor contract when one of the following situations arises:

  1. When the employers’ businesses are suspended or have been transferred.
  2. When the employers’ businesses suffer an operating loss or business contractions.
  3. When force majeure necessitates the suspension of business for more than one month.
  4. When the change of the nature of business necessitates the reduction of workforce and the terminated employees cannot be reassigned to other suitable positions.
  5. 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. And yet the compensation still needs to provide to employees

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.

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

Individual income tax

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 the family conditions which includes dependent of parent and child, single or married, tuition, investment savings, long-term care, and etc.

Net income (NTD)

Tax rate

0 – 540,000

5%

540,001 – 1,210,000

12%

1,210,001 – 2,420,000

20%

2,420,001 – 4,530,000

30%

4,530,00 and above

40%

Minimum wage

Minimum wage known as basic wage is discussed in the third quarter every year by the Basic Wage Committers. The current net minimum wage in Taiwan is NT$ 24,000 per month.

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.

Taiwan

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