HR Software for Taiwan

Leave Policy

Maternity Leave

Employees who have worked continuously for 6 months are entitled to 8 weeks of paid vacation. The employee receives 100% of his salary during this time and the employer is responsible for payment. If the employee has been employed in the company for less than 6 months, he is only entitled to 50% of his salary during the vacation.

Employees are entitled to an additional 5 days of vacation, which they can use for medical examinations before delivery.

You can use the leave module in IceHrm to manage maternity leave in Taiwan.

Paternity Leave

Employees are entitled to 5 days of paid paternity leave. The employee receives 100% of his salary during this period and the employer is responsible for this compensation.

Parental Leave

Employees are entitled to 2 years of parental leave. Both parents can decide how to divide their free time. Both parents can take parental leave. Parental leave is unpaid.

Sick Leave

Employees are entitled to 2 years of parental leave. Both parents can decide how to divide their free time. Both parents can take parental leave. Parental leave is unpaid.

Pay & Tax

Minimum Wage Requirements

The minimum wage is 26,400 TWD per month.

Individual Income Tax

Individual income tax ranges from 5% to 40%. Income tax is calculated at progressive rates.

Payroll Cost

The cost to the employer is generally estimated at 21.6% of the employee’s salary.

  • General employment insurance – 7.70%
  • Employment insurance – 0.70%
  • Occupational Disaster Employment Insurance – 0.22%
  • Wage Fund Labor Insurance – 0.025%
  • National Health Insurance – 4.83912%
  • Pension (Labour Pension Act) – 6.00%
  • Additional contribution to state health insurance – 2.11%*

*Only for employees with a monthly salary of more than TWD 219,500.

Please note: Caps apply to these employer costs, so contributions may vary.

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

For positions that are not considered management positions, overtime pay may be mandatory. Hours outside of normal working hours are considered overtime. An employee can work a maximum of 4 hours of overtime. Employees receive compensation for the additional hours:

  • Normal working days
    • 134% of the hourly rate for the first 2 hours.
    • 167% of the hourly rate for the following 2 hours.
  • For rest days
    • 234% of the hourly rate for the first 2 hours.
    • 267% of the hourly rate for the following 10 hours
  • On public holidays, during annual leave or during regular leave, employees receive 200% of their hourly rate

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Dismissal of an employee must be carried out in accordance with the Labor and Standards Act (LSA). Both the employer and the employee are obliged to give notice or pay severance pay. Unused vacation, payments or benefits must be paid out upon termination.

Notice Period

The minimum notice period is 0 days and increases depending on the length of employment.

  • Continuous employment of less than 3 months – no notice period
  • Continuous employment of at least 3 months but less than 1 year – 10 days
  • Continuous employment of at least 1 year and less than 3 years – 20 days
  • Continuous employment for at least 3 years – 30 days

Severance for Employees

Required upon termination of employment due to dismissal or poor performance in the amount of 0.5 average monthly salary per year of service or pro rata if service is less than 1 year.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 3 days of paid time off (PTO) per year. The number of PTO days and the frequency of savings depend on the length of employment. Employees are entitled to annual leave after 6 months of employment. During the first year of employment, an employee may not take more than 3 days.

  • 6 months of employment – 3 days of paid vacation
  • 1 year of employment – 7 days of paid vacation
  • 2 years of employment – 10 days of paid vacation
  • 3 years of service – 14 days of paid vacation
  • 5 years of service – 15 days of paid vacation
  • 10 or more years of employment – 1 additional day is granted each year, annual leave is a maximum of 30 days.

Public Holidays

There are 13 national holidays celebrated in Taiwan.

  • National public holidays include:
  • New Year’s Day
  • Republic Day
  • Chinese New Year Holiday
  • 228 Peace Memorial Day
  • Children’s Day Holiday
  • Children’s Day
  • Qing Ming Festival
  • Labour Day
  • Dragon Boat Festival
  • Mid-Autumn Festival Holiday
  • Mid-Autumn Festival
  • ROC National Day

Onboarding

Onboarding

Within 5 days of signing the MSA and paying the deposit

Additional Info

Employment Contract Details

Contracts can be concluded in English. They must be in writing and signed by both parties.

All employment contracts must contain:

  • Surname
  • National ID number
  • Start date
  • Contract term
  • Probation period
  • Notice period
  • Job role
  • Description of the position
  • Work locations and working hours
  • Holidays and vacations
  • Salary
  • Variable salary components and additional benefits
  • Salary payment period
  • Overtime conditions
  • Conditions for termination of employment

Probation Period

The minimum duration of the probationary period is 6 months, there is no statutory maximum duration, but companies usually set a maximum duration for the probationary period.