Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The minimum wage is NT$24,000 monthly/NT$160 hourly.
Salaries are paid monthly for work done between the 1st and last day of the month. Payday is typically on the 15th of every month.
Not required but law but is customary.
Employees in Taiwan work 8 hours a day with a week being 40 hours, not including overtime. It is also mandatory in Taiwan to have two days off every 7 days. One of these days off is compulsory, the other flexible. The difference between these two resting days is that the employee cannot agree to work on the mandatory day off while working on a flexible day is negotiable. Overtime is paid to employees working on flexible days.
Working hours cannot exceed 12 in one day, and maximum overtime is 46 hours monthly.
Overtime is paid at 134% for the 8th-10th hours (daily) and 167% for the 10th-12th hours (daily).
Overtime on “flex-day” is paid at 134% for the first two hours, 167% for 2nd-8th hours, and 267% for 8th-12th hours.
Annual leave is dependent on the years an employee has worked for the employee.
- 3 days after 6 months of service
- 7 days after a completed year
- 10 after 2 years
- 14 days after 3 years
- 15 days after 5 years
- 1 additional day is given every year after 10 years. The maximum annual leave is 30 days.
Unused vacation days carry over to the following year. If those vacation days aren’t used within two years, they will be converted into salary. Payment is based on the employee’s first-year wage.
If unused annual leave is not carried over to the next year, or if the employee’s contract is terminated by the end of the first year, regular daily wages are paid for unused days off. Employees’ daily salary is the amount they received for working regular hours a day before their employment contract was terminated or their service ended. In cases when employees are paid monthly, their daily salary is also based on their regular working hours and wages paid to them one month prior to the end of their employment or the termination of their contract. Yet for them, this amount should be divided by 30. The amount substituted for the annual leave is paid on the employees’ regular payday or within 30 days of the end of their working year. If employees are fired, employers should give them their annual leave payment without delay.
12 public holidays.
Employees are entitled to two types of sick leave in Taiwan. They can have 30 days of ordinary sick leave a year, provided they are not hospitalized, or they can also take one year of sick leave within a two-year period when they are hospitalized. What is noteworthy is that the combined number of sick days taken within two years cannot exceed one year.
If employees are sick up to 30 days within one year, they receive half-pay. When employees’ sickness is covered by labor insurance, but its compensation is less than half of the employee’s salary, the employer pays the difference. When the employee is left injured or disabled due to an accident at work, the employer pays him or her full salary. If after two years, the employee does not recover from the occupational injury or disability and is diagnosed as unable to fulfill former tasks, the employer pays him or her one amount of 40 months’ average wage, provided the employee does not qualify for disability. When employees use up all their sick days, they can ask for additional unpaid days off. The maximum of unpaid sick leave the employee can take is 1 year. There is also a possibility to recover sick pay from the state.
Expecting mothers are entitled to 8 weeks leave paid at 100% rate unless the employee has worked at the company for less than 6 months, in which case the rate is lowered to 50%.
New fathers are entitled to 5 days of fully paid paternity leave.
Employees can take parental leave if they have worked for the same employer for at least 6 months. The employee’s child should be younger than 3 years of age and his or her spouse should be employed. Paternal leave is unpaid.Bereavement leave:
- Spouse or parent – 8 days
- Grandparent, parent-in-law, or child – 6 days
- Sibling or grandparent-in-law – 3 day
Taiwanese employment law is regulated by the Labor and Standards Act (LSA). Both employer and employee are required to provide valid reasoning for termination as well as a notice period.
Employers are expected to give notice to their employees based on the length of their employment:
- 10 days’ notice to employees for service of more than 3 months and less than a year
- 20 days’ notice for service of more than one year but less than 3 years.
- 30 days’ notice is provided to employees who have done 3 or more years of service.
For employees who began employment pre-2005 under the Labour Standards Act, severance pay will be equal to one month of average wages for each year of service, provided the employee was employed by the same employer continuously. Those employees who have worked for less than a year receive severance pay in proportion to the months of service.
For employees who began employment post-2005 under the Labour Pension Act, severance pay is also calculated based on one month’s average wages for each year of service. However, the amount that the company pays for each year of service is equal to 50 percent of the employee’s average monthly salary.
Taiwan does not have a minimum or maximum trial period. 3 months is customary.
5% standard rate.