June 7, 2021
Taiwan
Employer of Record & PEO in Taiwan
Hire & manage teams remotely in Taiwan without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Native Language
Mandarin
Employee Protection
Medium
Payroll Frequency
Monthly
Capital city
Taipei
Termination
Hard
Internet
Fast
Currency
New Taiwan Dollar (TWD)
Immigration
Hard
English Speaking
<30%
Population
23.45 Million
Employment Cost
Low
Cost of Living
Medium
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Taiwan. Registering a legal entity in Taiwan as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Taiwan in full accordance with local labor laws in under a week.
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 in Taiwan. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Taiwan.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Taiwan in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Taiwan while NNRoad manages payroll & HR liabilities.
- Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation
- Hiring of and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire)
- On-boarding and off-boarding employees following Taiwan 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 Taiwan local laws
- Payment management (Invoicing customers/clients and vendor payments)
- Working VISA application assistance, if needed
- Local individual income tax reporting, if needed
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.
➊ You interviews & select the candidates you want to hire in Taiwan.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Taiwan while NNRoad manages payroll & HR compliance.
- 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
Advantages of NNRoad's Taiwan Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Taiwan.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Taiwan.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Taiwan
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 Contributions:
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 |
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.
Benefits & Insurance in Taiwan
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.
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.
Public Holidays in Taiwan
Public Holidays in Taiwan
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) and
- 2022 New Year holiday (Dec. 31-Jan. 2).
Paid Leave 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:
- 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
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.
Types of Leaves in Taiwan
Annual leave
Employees in Taiwan are entitled up to a maximum of 30 days of paid annual leave. The relevant regulations, in compliance with Taiwan labor law are listed bellow:
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
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.
Immigration Laws in Taiwan
Foreign national who wants to work in Taiwan must get all three of the following:
- Taiwan Work Permit, which authorizes you to work
- Taiwan Work Visa, which allows you to travel to Taiwan for the purpose of employment
- Taiwan Residence Permit (Alien Resident Certificate, aka ARC), which allows you to live in Taiwan long-term
Documents required for the a Taiwan work visa:
- Work Visa Application Form filled out, dated, printed and signed.
- Two passport-size photos size 35mm by 45mm without a border with a solid white background taken within the past six months.
- A passport valid for a minimum of 6 months and 3 free pages for visas and stamps.
- A recent (3 month) Health Certificate. To get this health certificate (also called physical examination) you must go to a local hospital appointed by the Centers for Disease Control of the Ministry of Health and Welfare or a hospital in your home country. recommended.
- The original and a copy of the Work Permit.
