When managing a team in Taiwan, understanding local holiday pay regulations is essential for compliance and employee satisfaction. Unlike some Western countries, Taiwan has strict labor laws governing holiday entitlements, pay obligations, and substitute days. Here’s what foreign employers need to know:

1. Know the Types of Holidays

Taiwan officially recognizes two types of holidays:

• National Holidays (e.g. Double Ten Day, Lunar New Year): Mandatory paid days off.
• Make-up Working Days: Compensatory workdays typically scheduled on Saturdays to make up for extended holidays.

Employees are entitled to a day off with pay on national holidays unless otherwise agreed under special shifts (e.g., hospital, transportation).

2. Overtime on Holidays Must Be Paid Extra

If employees work on a national holiday, they are entitled to overtime pay:

• First 2 hours: 1.33x hourly wage
• 3rd hour onward: 1.66x hourly wage

Employers must also get employee consent in advance and submit this to the local labor office (where required).

3. Clarify Substitute Holidays in Advance

When a national holiday falls on a weekend, the government usually announces a substitute day. Employers must:

• Follow the Ministry of Labor’s annual holiday schedule
• Update internal calendars and inform staff early

Failure to observe substitute holidays may lead to penalties or employee disputes.

4. Consider Pro-Rated Holiday Pay for Part-Time and Foreign Staff

• Part-time employees: Eligible for pro-rated holiday pay based on working hours
• Foreign nationals: If employed under local contracts, the same entitlements apply

Remote workers outside Taiwan are not typically subject to these rules but should still be handled transparently.

5. Keep Records for Audit Purposes

Labor authorities may request proof of:

• Paid holiday logs
• Overtime payment slips
• Make-up day arrangements

Ensure that HR and payroll systems are aligned with legal requirements.

Final Thoughts

Holiday pay in Taiwan involves more than just giving the day off. It requires legal compliance, advance communication, and detailed payroll processing. By getting it right, foreign employers can strengthen employee trust while avoiding costly penalties.

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