New Taiwan Dollar
Mandarin Chinese
Taipei City
Cost of Living
(US 69.92)
Time (UTC)
UTC +8
Semi-presidential republic

Hire in Taiwan without an entity and fully compliant with local labor laws

Taiwan is a prosperous country with a thriving economy, exceptionally skilled workforce, and one of the world’s most educated populations–the average IQ is 106!

English literacy is high, especially with younger people and in metropolitan areas. Taiwan is approximately the same size as Belgium and 143% larger than Maryland.

Get to know Taiwan

Taiwan is an island in the Pacific Ocean with a subtropical climate and a dynamic entrepreneurial spirit. The country ranks highly in terms of freedom of the press, healthcare, public education, and economic freedom.

Local culture values family, face (i.e., respect), and first impressions. Suits are common business attire. Outside of work, golf, ping-pong, basketball, soccer, softball and badminton are popular recreational activities.

The economy is largely export-oriented, so many Taiwanese business people are familiar with global business etiquette. And considering the primary industries are semiconductor manufacturing, information technology, and electronics, it’s not surprising global giants Google, HTC and Asus have major operations in Taiwan.

The World Bank classifies Taiwan as a high-income economy with the following agreements and alliances:

  • APEC - Asia-Pacific Economic Cooperation
  • ADB - Asian Development Bank
  • WTO - World Trade Organization

Must know” if you’re hiring in Taiwan without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full time vs contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Taiwanese employees

Hiring remote Taiwanese professionals is smart and economical, assuming you’re fully compliant with local tax, labor, and wage laws.
Employee Classification–Full-time vs Contractor

Full-time employees

  • Referred to as “hired individuals”
  • Enter into hire-of-services agreements
  • An employee is hired and paid to do a specific job 
  • Must follow employer’s instructions; no independent decision-making authority


  • Referred to as “retained individuals” 
  • Enter into mandate agreements
  • Retains independent decision-making authority within the terms of the agreement

Taiwan’s Ministry of Labor (MOL) created the non-binding Guiding Principles for the Identification of Labor Contracts (the Principles) November 19, 2019

Employment Contracts

Taiwan labor law references two types of contracts: fixed and non-fixed terms. Both are optional but if preferred, both types must include:

  • The worksite and the work to be performed in that location
  • Start and stop times, break periods, national & public holidays, off days, and paid vs unpaid leave 
  • How wages are calculated, revised, and paid 
  • Retirement and termination and 
  • Bonuses, allowances, severance and other additional payments
  • Non-reimbursable expenses associated with completing assigned duties
  • Expectations regarding safety, health, welfare, on-site behaviors, and professional development, awards, and discipline
  • Payment for occupational injuries 
  • Additional topics regarding employer and employee rights and obligations
Probation Period
  • Minimum = six months
  • No legal maximum 
  • Businesses usually establish a probationary period
Standard Working Hours & Overtime
  • Eight hours per day
  • 40 hours per week, Monday-Friday
  • Employees choose overtime pay or additional paid leave equal to the number of overtime hours worked
Payroll Frequency


Wages & Bonuses
  • Minimum monthly wage = $795 USD
  • Minimum hourly wage = $5.30 USD
  • Lunar New Year bonus (a.k.a., 13th or 14th monthly payment)
  • Holiday bonus amounts range from $25 USD to $63 USD

USD equivalent median salaries based on Role:

  • Data Scientist: $17,091
  • Electrical Engineer: $46,993
  • Hardware Engineer: $25,673
  • IT Manager: $26,450
  • Mobile Developer: $25,237
  • Product Manager: $35,798
  • Project Manager: $20,630
  • QA Engineer: $17,051
  • Software Engineer: $29,981
  • System Administrator: $18,279
  • UX Designer: $20,116
  • Web Developer: $40,142
Payroll Taxes & Employer Contributions
  • 10.5% Labor Insurance 
  • 6%: Pension Fund
  • 5.17%: Health Insurance
  • 0.20%: Accidental Insurance
  • 0.025%: Arrear Wage Payment Fund (a.k.a. Overdue Wages)

National Health Insurance

  • Typically offered to employees’ spouses and dependent children 
  • Full cost is distributed among employers (60%), employees (30%), and the government (10%).

Paid Leave


  • Less than 6 months consecutive employment = eight weeks at 50% salary
  • More than 6 months consecutive employment = eight weeks at 100% salary
  • All employees receive five days of paid leave for medical visits before delivery


  • Maximum two days 
  • 100% salaryFive days of paid paternity leave at 100% salary

Note: employees may distribute two years of unpaid parental leave as they choose

Vacation/PTO days

  • Prior to six months = no PTO 
  • 6 months = 3 days
  • 1 year =7 days
  • 2 years = 10 days
  • 3 years =14 days
  • 5 years =15 days
  • 10+ years = 1 additional day per year; maximum annual leave is 30 days

Sick Days

  • Employer pays 50% of employees salary
  • Maximum 30 days per year
  • Up to one year of hospitalization leave over two years

Additional leave

  • Bereavement
  • Civil duty
  • Personal leave
  • Marriage

Additional Benefits

  • P3: Annual Health Check-up reimbursement 
  • P3: Meal reimbursements
  • P3: Leaving Services Benefits
  • P3: Festival benefits

Holidays (Taiwan celebrates 14 national holidays a year. Some have fixed-dates set on the Gregorian calendar and others are based on the Lunar calendar and thus observed on different dates each year.)

The most important fixed date holidays are

  • New Year's Day (1 January)
  • 228 Peace Memorial Day (28 February)
  • Labor Day (1 May)
  • National Day (10 October)

The most important Lunar calendar holidays are

  • Lunar New Year, (January or February)
  • Dragon Boat Festival (June)
  • Mid-Autumn Festival (September or October)
Termination & Severance
  • The Labor and Standards Act (LSA) governs dismissal policy
  • All terminated employees receive severance = to 50% of monthly salary number of years employed
  • Employers and employees must serve notice or payment in lieu of notice
  • Unused holidays, benefits, or payments are paid at termination

Non-compete Agreements 

  • Maximum length = two years 
  • Employees must be compensated for the non-compete period at a minimum of 50% of their average monthly wage

A few fun facts about Taiwan

  1. Garbage trucks roll down the street playing loud music to announce “trash collection time”
  2. You can have a sit-down meal in a 7-Eleven convenience store
  3. Elementary schools can accommodate 1500 students
  4. When a Taiwanese child loses a tooth, they throw it onto the roof

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