Guide to employment, payroll and benefits in

Taiwan (Province of China)

Rivermate offers complete payroll, benefits and compliance services for

Taiwan (Province of China)

01. Overview

Last updated: 

August 19, 2021

Currency
Taiwan Dollar
Capital
Taipei
Ease of doing business
Language
Chinese Tw
Population
23816775
GDP growth

02. Grow your team in

Taiwan (Province of China)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Taiwan (Province of China)

, particularly if you don't have established local relationships. You can hire employees in

Taiwan (Province of China)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

"Taiwan, China," "Taiwan, Province of China," and "Taiwan Province, China" are politically contentious words that refer to Taiwan and its related territories as "China's" provinces or territories. Even though the People's Republic of China – generally known by the international community as the official representative of "China" – does not exercise sovereignty over areas administered by the Republic of China, mainland Chinese media use the word "Taiwan, China." Because they deal with the contentious issues of Taiwan's political status and cross-Strait ties between "Taiwan" and "China," the words are divisive and potentially ambiguous. There have been two "Chinas" since 1949: the Republic of China and the People's Republic of China. The Chinese Communist Party has officially approved the use of this expression. The ROC government disagrees with the PRC's position and believes that this word is inaccurate and insulting, as do many Taiwanese citizens and supporters of Taiwan independence. It denies the ROC's sovereignty and life, thus reducing the country's political status to that of a province, they argue.

04. Public holidays

05. Types of leave

Paid time off

Annual leave is calculated based on the number of years a person has worked for the company.After 6 months of service, 3 days7 days after the end of a year, 10 days after two years, 14 days after three years, and 15 days after five yearsAfter ten years, one more day is granted each year. The maximum amount of time off each year is 30 days.Vacation days that are not utilized throughout the year are carried over to the next year. Those vacation days will be converted to compensation if they are not utilized within two years. The payment is determined by the employee's first-year salary.Regular daily pay are provided for unused days off if unused yearly leave is not carried over to the next year or if the employee's contract is terminated before the conclusion of the first year. Employees' daily salaries are the wages they got for working normal hours on a given day before their employment contract or service was terminated. Employees who are paid monthly have their daily compensation calculated based on their normal working hours and pay paid one month prior to the end of their employment or contract termination. This sum, however, should be divided by 30 for them. The sum substituted for annual leave is paid to employees on their usual payday or within 30 days after the end of the fiscal year. Employers should promptly pay employees' annual leave payments if they are sacked.

Public holidays

Taiwan recognizes twelve public holidays.

Sick days

In Taiwan, employees are entitled to two forms of sick leave. They are entitled to 30 days of regular sick leave every year if they are not hospitalized, or one year of sick leave in a two-year period if they are hospitalized. It's worth noting that the total number of sick days taken in a two-year period cannot surpass one year.Employees earn half-pay if they are sick for up to 30 days in a year. The employer pays the difference when an employee's illness is covered by labor insurance but the compensation is less than half of the employee's income. Employees who have used up all of their sick days might request additional unpaid days off. The employee can take a maximum of one year of unpaid sick leave. There's also the prospect of reclaiming ill pay from the government.

Maternity leave

Employees who are expecting a child are entitled to 8 weeks of paid maternity leave, unless they have worked for the firm for less than 6 months, in which case the rate is reduced to 50%.

Paternity leave

Paternity leave is 5 days long and completely compensated for new dads.

Parental leave

Employees who have worked for the same employer for at least 6 months are eligible for parental leave. The employee's child must be under the age of three, and his or her spouse must also be working. Paternity leave is not compensated.

Other leave

Bereavement leave:Spouse or parent – 8 days Grandparent, parent-in-law, or child – 6 days Sibling or grandparent-in-law – 3 day

06. Employment termination

Termination process

In Taiwan, employment is nearly never deemed 'at will.' Termination of employment is subject to certain constraints. Dismissal of an employee is permissible for the following reasons: the employer is closing the business or transferring ownership; the employer's operations are suspended for more than one month due to force; the employer's business nature changes, necessitating a reduction in the number of employees, and there are no suitable job openings for the redundant employees; and the employer's operations are suspended for more than one month due to force.


Employers are required to provide notice and pay severance in each of the aforementioned scenarios. Notice and severance pay are not required in more severe circumstances, such as when an employee misrepresents facts during the employment contract signing process, when an employee commits violence against the employer, the employer's family, or coworkers, when the employee is absent from work for three consecutive days or six days in a month without justification, or when the employee causes intentional damage.

Notice period

Employers are generally required to provide advance notice of termination to employees. The notice period is between ten and thirty days, depending on the length of service of the employee. No notice is required in a limited number of circumstances.

Severance pay

For each year of service up to six months, severance is equal to 50% of the average monthly wage.

Probation period

Taiwan does not require probationary periods. Even if the employment agreement includes a probationary period, if the employer terminates the employee during the probationary period or at the end of the period, the requirements for statutory cause, advance notice, and severance pay still apply.

07. Working hours

General

Employees in Taiwan work an average of eight hours per day and forty hours per week, not including overtime. Taiwanese workers are also required to take two days off every seven days. One of these days off is required, while the other is optional. The distinction between these two types of rest days is that an employee cannot agree to work on a required day off, whereas working on a flexible day is negotiable. Overtime is compensated to employees who work flexible schedules.

Overtime

Working hours cannot exceed 12 in a single day, and monthly overtime is limited to 46 hours. Overtime is paid at a rate of 134 percent for the eighth through tenth hours (daily) and 167 percent for the tenth through twelfth hours (daily). On flexible days, overtime is paid at a rate of 134 percent for the first two hours, 167 percent for the second through eighth hours, and 267 percent for the eighth through twelfth hours.

08. Minimum wage

General

The minimum wage is NT$24,000 per month or NT$160 per hour.

09. Employee benefits

General

Taiwan has a government-run single-payer universal healthcare system.

Other typical employee perks include leaving service benefits (LSB), life, accident, and business travel insurance, housing allowances, and festival bonuses, among other things.

Meal allowances are free from individual income tax and may be given up to a maximum of NT$2,400 per month. Housing allowances are mostly given to expatriates and certain high level executives and are tax-free. To recruit and retain local personnel, most international corporations provide these additional perks.

Employees' wives and dependent children are usually entitled to medical benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Taiwan (Province of China)

to hire a team takes time, money, and effort. The labor law in

Taiwan (Province of China)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Taiwan (Province of China)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Taiwan (Province of China)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Taiwan (Province of China)

via our Employer of Record / PEO solution.

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