Employment in Taiwan is governed mainly by the Labor Standards Act, the Gender Equality in Employment Act and the Labor Pension Act, with social insurance run by the Bureau of Labor Insurance and the National Health Insurance Administration. Here is what employers need to know about leave, pay, tax and ending employment.
The Labor Standards Act sets paid annual leave by length of service, while family-related leave comes mostly from the Gender Equality in Employment Act. Several types of leave can be taken by the day or even by the hour.
Grows with service, from 3 days after 6 months to a maximum of 30 days. Unused days are paid out at the end of the year or of employment, unless carried forward by agreement.
A year without hospitalisation, at half pay. Hospitalisation can extend sick leave to up to 1 year within any 2 years.
Full pay after 6 months of service, half pay before that. Labour insurance also pays a maternity benefit.
Paid leave for prenatal check-ups and the birth, for the spouse or partner. Expectant mothers also get 7 days of paid prenatal check-up leave.
| Continuous service | Paid annual leave |
|---|---|
| 6 months, less than 1 year | 3 days |
| 1 year, less than 2 years | 7 days |
| 2 years, less than 3 years | 10 days |
| 3 years, less than 5 years | 14 days a year |
| 5 years, less than 10 years | 15 days a year |
| 10 years or more | 16–30 days |
Each parent may take unpaid parental leave for up to 2 years per child until the child turns 3. Parents insured under employment insurance for at least a year can claim a parental leave allowance of 80% of their insured salary for up to 6 months each. Since 1 January 2026, up to 30 days of this leave can be taken flexibly one day at a time.
Set up each Taiwanese leave type in IceHrm with its own accrual, carry forward and approval rules, including service-based annual leave and pro-rata entitlements. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The Ministry of Labor reviews the minimum wage every year, usually in the third quarter, with changes taking effect on 1 January. In September 2026 the review committee agreed NT$30,900 a month and NT$205 an hour from 1 January 2027, subject to Executive Yuan approval.
NT$196 per hour, from 1 January 2026.
Up to 8 hours a day, with 2 days off each week: one regular day off and one rest day.
Up to 54 hours a month and 138 hours per 3 months with union or labour-management meeting consent. Normal plus overtime hours may not exceed 12 a day.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so tiered overtime premiums reflect what was actually worked. Time & attendance →
Residents are taxed at progressive rates on net taxable income, after exemptions and deductions. Employers withhold tax from salaries each month, and individuals file an annual return in May for the previous calendar year.
| Net taxable income | Rate | Progressive difference |
|---|---|---|
| NT$0 – NT$610,000 | 5% | Nil |
| NT$610,001 – NT$1,380,000 | 12% | NT$42,700 |
| NT$1,380,001 – NT$2,770,000 | 20% | NT$153,100 |
| NT$2,770,001 – NT$5,190,000 | 30% | NT$430,100 |
| NT$5,190,001 and over | 40% | NT$949,100 |
Tax = net taxable income × rate − progressive difference. For income year 2025 (filed in May 2026) the brackets were lower: NT$590,000, NT$1,330,000, NT$2,660,000 and NT$4,980,000.
Employers must enrol employees in labour insurance, employment insurance, occupational accident insurance and National Health Insurance from their first day, and contribute to the labour pension. Contributions are based on salary grades, and several are capped.
Minimum employer contribution to the employee’s individual pension account. Employees may add up to 6% voluntarily.
Employer share of a combined 12.5% premium (11.5% labour insurance plus 1% employment insurance). Employees pay 20% and the government 10%.
Employers pay 60% of the 5.17% premium, adjusted for the national average number of dependants.
Paid entirely by the employer, at a rate that depends on the industry. A small wage arrears fund levy is also payable.
Build Taiwanese pay the way you already structure it, with your own salary components, deductions and formula columns, such as a labour pension contribution column. Want to know how well IceHrm handles payroll calculations for Taiwan? Contact us or see Payroll →
Employment in Taiwan is not “at will”. An employer can only dismiss on the grounds listed in the Labor Standards Act: economic grounds with notice and severance (Article 11), or serious misconduct without notice or severance (Article 12).
| Continuous service | Notice |
|---|---|
| 3 months, less than 1 year | 10 days |
| 1 year, less than 3 years | 20 days |
| 3 years or more | 30 days |
| Pension system | Severance pay |
|---|---|
| Service under the Labor Pension Act (from July 2005) | ½ month’s average wage per year, max 6 months |
| Service under the old pension system | 1 month’s average wage per year |
Mass redundancies are subject to advance notification and plan requirements under the Act for Worker Protection of Mass Redundancy. Final pay should include wages in lieu of unused annual leave.
A 2025 law added new national holidays, bringing the total to 16 paid days. Employees are paid for these days, and work on them is paid double.
Lunar calendar holidays move each year. Some holidays falling on a weekend are observed on a nearby working day under Directorate-General of Personnel Administration rules.
Leave groups give each office its own holiday calendar, so staff in Taiwan and in your other locations get the right days off automatically. Holiday calendars →
Employment contracts may be indefinite or fixed-term. The law does not require a written contract, but one is strongly recommended, and its terms can never fall below the Labor Standards Act.
The Labor Standards Act does not regulate probation; periods of about 3 months are common, and dismissal during probation still needs a lawful ground. Fixed-term contracts are only allowed for temporary, short-term, seasonal or specific work. A fixed-term contract that continues after it ends, or is renewed within a short gap, can be treated as indefinite.
Send contracts for e-signing, store them and work permits on the employee’s record, and track onboarding with task lists so every registration is done on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Taiwan, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Taiwan? Talk to us.
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