Hire employees in Taiwan without opening an entity

Employer of Record (EOR) in Taiwan:
Compliant Labor Base & HR Management

Hire employees in Taiwan without first establishing your own local company or branch. Through NNRoad’s Taiwan Employer of Record service, the local team handles the agreed employment administration, payroll and statutory processes while your company directs the employee’s work, objectives and business priorities.

Hire employees in Taiwan without a local entity

A Taiwan EOR arrangement may be suitable when you need a genuine employee in Taiwan but do not have a local entity capable of employing that person.
The local team manages the agreed local employment and payroll administration. Your company continues to direct the employee’s day-to-day activities, reporting line, objectives and performance.

When Taiwan EOR may fit

EOR may be appropriate when:

you are making your first hire in Taiwan;
you need a small local or remote team;
the position is an ongoing employee role;
your company does not yet have a Taiwan employing entity;
you want to test the market before establishing an entity;
you need local payroll and statutory employment administration;
you may later transfer the employee to your own Taiwan company.

EOR is intended for an employment relationship. Where the person will operate independently, control how the work is performed and deliver a defined project or result, a contractor arrangement may be more appropriate.

What the local team handles

Depending on the agreed scope, the local team can manage:

local employment documentation and onboarding;
payroll calculations and salary administration;
payslips and payroll records;
applicable income-tax withholding;
statutory insurance and health-insurance administration;
labor-pension contributions;
leave and employee-change administration;
offboarding documents and final payroll.

The exact process and documentation depend on the employee, role and agreed service scope. The supplier reference confirms that local payroll, statutory insurance, pension and tax administration are available, but its internal timing and document practices are not presented as universal public commitments.

What your company continues to control

Your company normally controls:

the employee’s duties and responsibilities;
reporting lines and internal stakeholders;
work objectives and priorities;
daily work allocation;
performance expectations;
access to company systems;
commercial decisions affecting the position.

Material changes to compensation, duties, working arrangements or location should be communicated to the local team before they are implemented. This allows the local employment and payroll records to remain aligned with the actual working arrangement.

Is EOR the right route for your Taiwan hire?

EOR is not the only way to engage someone in Taiwan. The appropriate route depends mainly on whether your company already has a local employing entity and whether the individual should be treated as an employee or an independent service provider.

Your situation	Route to consider	Main distinction
You need an employee but do not have a Taiwan employing entity	Taiwan Employer of Record	The local employment structure supports the employee while your company manages the work.
Your Taiwan entity already employs or will employ the worker	Taiwan payroll outsourcing	Your own entity remains responsible for the employment relationship.
The individual will deliver an independent project or defined outcome	Contractor or on-demand talent support	The engagement must operate as a genuine independent relationship.
You plan a substantial permanent operation in Taiwan	Entity setup and direct employment	Your company establishes its own local employing infrastructure.

EOR versus payroll outsourcing

Payroll outsourcing supports an existing local employer. It does not create a local employing structure for a company that has no Taiwan entity.

Where your Taiwan company or branch will sign the employment agreement and remain responsible for the employment relationship, review Taiwan payroll outsourcing. NNRoad’s current Taiwan payroll page likewise distinguishes payroll support for companies with an existing local employer from EOR for companies without one.

EOR versus contractor engagement

A contractor arrangement may be suitable for independent, project-based work with defined deliverables and meaningful autonomy over how the work is performed.

An employee relationship is more likely to fit when the individual performs continuing business duties, works within the company’s reporting structure and is subject to close day-to-day direction. Review Taiwan contractor and on-demand talent support where the proposed engagement is based on outcomes rather than an employee position.

Foreign-national hires

A foreign national may potentially be hired through a Taiwan EOR arrangement. The available route depends on the candidate’s circumstances, including the role, qualifications, residence status, work location and current right to work.

NNRoad can assess work-authorization and EOR feasibility as part of the case review. Detailed immigration requirements should be handled through Taiwan foreign-employee hiring support rather than repeated on the EOR page. NNRoad’s dedicated foreign-hiring page covers work-permit, visa and Alien Resident Certificate processes in greater detail.

When to consider your own entity

EOR can support initial market entry, but establishing an entity may become more appropriate as the operation grows.

The decision may depend on local headcount, commercial contracts, regulated activities, tax position, expected operating duration and your company’s ability to manage local HR and payroll internally. A transition can be planned when your Taiwan entity is ready to employ the team directly.

Plan the full cost of employment

The employment budget includes more than the employee’s gross salary. Statutory insurance, National Health Insurance, labor pension, payroll withholding, benefits, leave and potential termination costs may all affect the total.

Taiwan uses statutory contribution and insured-salary classifications for several employment costs. The final amount therefore depends on the employee’s actual compensation and circumstances rather than one universal employer percentage. The Bureau of Labor Insurance and National Health Insurance Administration publish the applicable calculation rules and classifications.

Cost component	What it may include
Gross salary	Agreed monthly base salary
Variable compensation	Allowances, commission, incentives and contractual bonuses
Statutory insurance	Applicable labor, employment and occupational accident insurance
National Health Insurance	Employer and employee contributions under the applicable insured-salary basis
Labor pension	Employer contribution where the employee is covered
Payroll withholding	Income-tax withholding based on the employee’s circumstances
Leave and working time	Paid leave, public holidays and overtime where applicable
Additional benefits	Group insurance, allowances, health checks or other agreed benefits
Termination exposure	Notice, severance, unused leave and final payroll
EOR service charges	Agreed setup, recurring and case-specific fees

Statutory insurance and health coverage

Taiwan’s labor insurance, employment insurance, occupational accident insurance and National Health Insurance do not all use the same calculation method.

Applicable costs can depend on the employee’s insured-salary grade, status and coverage. The local team calculates the relevant contributions through payroll rather than applying one general percentage to every employee.

Labor pension

Employees covered by Taiwan’s new labor-pension system receive mandatory employer pension contributions under the Labor Pension Act.

The employee’s coverage and contribution basis should be included in the employment-cost calculation before the offer is finalized.

Bonuses and benefits

Taiwan does not impose a universal statutory requirement for every employee to receive a 13th-month salary. A year-end payment or performance bonus may nevertheless become binding if it is included in the employment agreement, company policy or another established compensation arrangement.

Optional benefits may include group insurance, allowances, health checks and other employer-sponsored benefits. These items should be included in the cost review where they form part of the proposed offer.

Payroll withholding

Income-tax withholding depends on the employee’s compensation and individual circumstances.

For an international employee, physical presence in Taiwan and remuneration paid outside Taiwan may also affect the tax analysis. These details should be disclosed before payroll is configured, particularly where the employee travels frequently or receives split compensation from different countries.

Estimate your Taiwan employment cost

Use the calculator for an initial estimate, then confirm the final budget against the employee’s compensation, statutory coverage, benefits and service scope.

Calculate Taiwan employment cost

Prepare the employee for onboarding and payroll

Onboarding begins after the role, compensation and employment route have been agreed. The employee should not start work until the required employment documentation and any applicable work authorization are ready.

Information needed for the initial review

Prepare:

candidate’s nationality and current location;
job title and responsibilities;
proposed work location;
monthly gross salary;
allowances, bonus or commission;
proposed benefits;
expected working schedule;
target start date;
expected employment duration;
your company’s Taiwan entity status;
residence or work-authorization information where relevant.

This is enough to assess the likely EOR route and identify additional information required before onboarding.

Working time and leave

Regular working hours, overtime, rest days and leave must be administered according to Taiwan requirements.

The Labor Standards Act generally sets regular working time at no more than eight hours per day and 40 hours per week. It also requires employers to maintain attendance records. Alternative schedules and overtime arrangements can require additional procedures.

The client should disclose anticipated weekend, evening, holiday, travel or on-call work during setup. This allows the local team to determine how working time should be recorded and processed.

Payroll preparation

Before the first payroll, the parties should confirm:

employee identity and local payment information;
base salary;
recurring allowances;
variable compensation;
attendance and overtime;
leave taken;
statutory contribution status;
tax-withholding information;
payroll approval contacts.

The local team will confirm the payroll calendar, information cutoff and required documents during onboarding. No fixed public onboarding or payment timeline should be promised unless it has been agreed for the individual case.

Review your Taiwan hiring case!

Share the role, candidate circumstances, compensation, work location and proposed start date. We will assess whether EOR or another Taiwan workforce route is the better fit.

Submit my Taiwan hiring case

Manage employment changes and termination

Employment administration continues after the employee starts. Changes to pay, duties, schedule, location or immigration status can affect the contract, payroll, statutory contributions or work authorization.

The local team should be involved before a material change is announced to the employee.

Changes during employment

Examples requiring advance review may include:

salary increases or reductions;
new allowances or bonus plans;
promotion or material duty changes;
relocation;
extended work outside Taiwan;
changes to working hours;
changes to residence or work-authorization status.

The purpose of the review is to ensure that the employment documentation and payroll records match the employee’s actual arrangement.

Termination should be reviewed before it is communicated

Taiwan does not treat employer termination as a purely commercial decision. The proposed termination must have an appropriate legal basis and follow the applicable process under the Labor Standards Act.

Depending on the circumstances, termination may involve advance notice, severance, unused leave, final salary and other outstanding contractual amounts. Certain employee circumstances can also restrict or delay termination. The case should therefore be reviewed before the employee is told that employment will end.

Notice and severance exposure

The applicable notice and severance treatment depends on the reason for termination, the employee’s service and the governing pension system.

Under the new labor-pension system, qualifying severance is calculated by reference to average wages and length of service and is subject to a statutory cap. The local team should calculate the amount for the specific employee rather than relying on a general estimate.

Moving the employee to your own Taiwan entity

An employee can potentially move from the EOR arrangement to direct employment after your Taiwan entity is ready.

The transition may require:

agreement on the effective date;
ending the existing employment arrangement;
final payroll;
a new employment agreement;
new statutory registrations;
treatment of accrued leave;
agreement on whether prior service will be recognized;
work-authorization review where relevant.

The transfer should be planned before either employment relationship is changed or ended.

Taiwan
Employer of Record
FAQs

Can a foreign national be hired through a Taiwan EOR?

Potentially, yes. The available route depends on the employee’s role, qualifications, residence status, work location and current right to work.
NNRoad can assess EOR and work-authorization feasibility before the company confirms the offer or start date. Detailed cases should be reviewed through Taiwan foreign-employee hiring support.

How long does Taiwan EOR onboarding take?

The timeline depends on document readiness, employment terms, work authorization where relevant, payroll setup and the agreed start date. The employee’s start date should be confirmed after the case has been reviewed and the required employment documentation is ready. The page should not promise a universal onboarding period.

Is a 13th-month salary mandatory in Taiwan?

No general statutory rule requires every Taiwan employer to pay a 13th-month salary.

However, a year-end payment or bonus may become payable if it is included in the employment agreement, company policy or an established compensation practice.

Can the employee later transfer to our own Taiwan entity?

Potentially, yes. Once your Taiwan entity is ready to employ the worker, the parties can plan the end of the EOR arrangement and the start of direct employment.

The transition should address final payroll, a new agreement, statutory registrations, accrued leave, prior-service treatment and work authorization where relevant.