What do you need to know to hire in Taiwan?
Severance in Taiwan splits on one date. Service before 1 July 2005 earns 1 month average wage per year. Service from that date earns 0.5 months per year, capped at 6 months. Wages must be paid at least twice a month. Each guide below takes one layer.
· Taiwan guide
How does Teamed handle Taiwanese hiring for you?
Teamed becomes your legal employer of record in Taiwan for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the full Taiwanese employment law stack run on one platform.
Real HR and legal experts manage every Taiwanese hire, from the first offer letter to the final settlement. An actual person, not a chatbot or a pooled queue, handles your Taiwan team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A Taiwanese contractor who converts to employment keeps their record, and that same employee can graduate from EOR to your own Taiwanese entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Taiwan hire, until it isn't.
- Taiwan runs two severance systems at once, split by 1 July 2005. Service before that date earns 1 month average wage per year under the Labor Standards Act. Service from that date earns 0.5 months per year, capped at 6 months, under the Labor Pension Act. Most EOR guides quote one number and miss the split.
- There is no mandatory 13th month salary in Taiwan. The Lunar New Year bonus is custom, not law. Year-end pay is only owed from net profits after tax under Labor Standards Act article 29. The cost breakdown guide shows where this bites budgets.
- An employer cannot fire at will in Taiwan. Dismissal is lawful only on a closed list of grounds in articles 11 and 12 of the Labor Standards Act. Off-list, the dismissal is not valid. The termination guide walks the safe grounds and the notice owed.
Hiring in Taiwan starts at a monthly minimum wage of TWD 29,500/month, or TWD 196/hour by the hour, from 1 January 2026.
The employer pays at least 6% of salary into each worker's Labor Pension account. Employees owe no mandatory pension contribution. Labor Insurance and National Health Insurance premiums are separate and shared.
Severance depends on the hire date. Service before 1 July 2005 earns 1 month average wage per full year. Service from that date earns 0.5 months per year, capped at 6 months.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Taiwan in 2026?
Plan on salary plus employer contributions on top.
The Labor Pension floor is 6% of salary. Labor Insurance and National Health Insurance add more, shared with the employee.
The employer pays at least 6% of salary into each worker's individual Labor Pension account under the Labor Pension Act. Labor Insurance and National Health Insurance premiums sit on top and are split between employer, employee, and the state. Those split rates move with the annual Bureau of Labor Insurance and National Health Insurance tables, so the cost guide carries the current figures rather than this hub.
Teamed's Taiwan price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.
The full breakdown, with worked examples at current rates, is in the cost guide.
Do you need a Taiwanese entity to hire employees in Taiwan?
No. An Employer of Record runs Taiwanese payroll and contracts from day one.
Your own Taiwanese entity becomes cheaper than EOR once headcount in one country climbs, depending on salary.
Registering a Taiwanese company means company registration, Labor Insurance and National Health Insurance enrolment, a Labor Pension account per worker, and ongoing payroll filings. Setup takes weeks and carries monthly statutory work after that. An Employer of Record is faster and cheaper at low headcount. Teamed runs Taiwanese payroll, contracts, and compliance from day one.
The crossover point depends on Taiwanese salary levels and your local accounting costs. The EOR vs entity guide runs those numbers for your headcount.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Taiwanese entity on one platform under Teamed's Graduation Model, with tenure preserved.
What changed for Taiwanese employers recently?
The monthly minimum wage rose to TWD 29,500/month from 1 January 2026.
The hourly minimum wage rose to TWD 196/hour on the same date.
The Ministry of Labor raised the basic wage from 1 January 2026. The monthly floor is now TWD 29,500/month and the hourly floor is TWD 196/hour, per the Ministry of Labor basic wage announcement. The FY2026 consolidated income tax thresholds were also raised, so the bands now start at 5% and reach 40% at the top, per the National Taxation Bureau 2026 table.
Labor Insurance and National Health Insurance contribution rates are reviewed each year by their agencies, so confirm the current split before each payroll run. The hiring and tax guides cover each obligation in detail.
What benefits must you provide Taiwanese employees in 2026?
Paid annual leave starts at 7 days for 1 to 2 years' service and rises with tenure.
Maternity leave is 8 weeks at full pay once the employee has at least six months' service.
Statutory annual leave scales with service under Labor Standards Act article 38: 7 days for 1 to 2 years, then more for each later band, up to a ceiling at long tenure. Maternity leave is 8 weeks at full pay for employees with six months or more of service, and at half pay below that.
Ordinary sick leave runs up to 30 days a year, paid at 50% of salary, with the employer topping up if the Labor Insurance benefit falls short, per the Regulations of Leave-Taking by Workers. Paternity and public holiday entitlements vary with the current Ministry of Labor schedule, so the benefits guide carries those figures. The benefits guide covers each entitlement in full.
Read the full Taiwan benefits guide
What are payroll taxes in Taiwan in 2026?
Consolidated income tax runs on five bands, from 5% to 40%.
The employer also pays at least 6% of salary into the Labor Pension account.
Individual consolidated income tax is progressive across five bands for FY2026: 5%, 12%, 20%, 30%, and 40% at the top, per the National Taxation Bureau 2026 table. Employer Labor Pension is at least 6% of salary, and employees owe no mandatory pension contribution. Labor Insurance and National Health Insurance premiums are shared and move with the annual agency tables.
Wages must be paid at least twice a month under Labor Standards Act article 23, with an itemised wage statement each time, and payroll records kept for at least five years. Teamed handles every employee deduction and statutory remittance. The tax and payroll guide sets out each band and threshold.
How do you terminate an employee in Taiwan?
Notice runs from 10 days to 30 days, by length of service.
Severance splits on 1 July 2005: 1 month per year before, 0.5 months per year after, capped at 6 months.
Advance notice under Labor Standards Act article 16 is 10 days for 3 months to under 1 year of service, 20 days for 1 to under 3 years, and 30 days at 3 years or more. Pay in place of notice is allowed.
Severance turns on the hire date. Service before 1 July 2005 earns 1 month average wage per full year under the old Labor Standards Act system. Service from that date earns 0.5 months per full year under the Labor Pension Act, capped at 6 months, and is due within 30 days of termination. An employer cannot dismiss at will: termination is lawful only on the closed grounds in articles 11 and 12, and there is no separate fixed unfair-dismissal payout beyond notice and severance. The termination guide runs the full process.
What should you know before hiring in Taiwan?
Two things catch US buyers out. The first is that there is no mandatory 13th month salary.
The second is that you cannot fire at will. Dismissal needs a ground from the law's closed list.
There is no guaranteed 13th month pay in Taiwan. The Lunar New Year bonus most workers expect is market custom, not law. Under Labor Standards Act article 29, a year-end bonus is only owed from net profits after tax and loss-cover, to workers who served the full year. Budget for the custom bonus as a retention cost, not as a statutory line.
At-will dismissal does not exist here. An employer may end a contract only on the closed grounds in articles 11 and 12 of the Labor Standards Act, such as a business closure or a worker who clearly cannot perform the role. Off-list, the dismissal is not valid, and the remedy is reinstatement plus back pay rather than a fixed tariff. The hiring guide and the termination guide both cover safe process.
Frequently asked questions
How much does it cost to hire an employee in Taiwan?
Plan on salary plus employer contributions. The employer pays at least 6% of salary into each worker's Labor Pension account, and Labor Insurance and National Health Insurance premiums sit on top, shared with the employee. Teamed's Taiwan fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples.
Can a US company hire in Taiwan without an entity?
Yes. An Employer of Record like Teamed runs Taiwanese payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Registering your own Taiwanese company takes weeks and requires Labor Insurance, National Health Insurance, and Labor Pension enrolment plus ongoing monthly filings.
What is the statutory notice period in Taiwan?
Advance notice under Labor Standards Act article 16 is 10 days for 3 months to under 1 year of service, 20 days for 1 to under 3 years, and 30 days at 3 years or more. Pay in place of notice is allowed. Contracts can set longer notice but cannot go below these minimums.
How is severance pay calculated in Taiwan?
It depends on the hire date. Service before 1 July 2005 earns 1 month average wage per full year under the old Labor Standards Act system. Service from 1 July 2005 earns 0.5 months per full year under the Labor Pension Act, capped at 6 months. Severance is due within 30 days of termination.
Does Taiwan require a 13th month salary?
No. There is no mandatory 13th or 14th month salary in Taiwan. The Lunar New Year bonus is market custom, not law. Under Labor Standards Act article 29, a year-end bonus is owed only from net profits after tax and loss-cover, to workers who served the full year. Treat the custom bonus as a retention cost, not a statutory one.
What is the minimum wage in Taiwan in 2026?
The monthly minimum wage is TWD 29,500/month and the hourly minimum wage is TWD 196/hour, both effective 1 January 2026 per the Ministry of Labor basic wage announcement. Standard working time is 40 hours a week across 8 hours a day.
Taiwan reads as a light-touch market until you reach termination. There is no at-will dismissal, severance runs on two systems split by a 2005 date, and the bonus everyone treats as guaranteed is only owed from profit. None of these are hard once you know them. They are consistently expensive when you do not.
Taiwan splits severance on one date in 2005, bans at-will dismissal, and guarantees no 13th month salary.
Most of the cost surprises come from treating it like an at-will market before the first hire.
Read the right Taiwan guide before that hire, not after the first dispute.
