As of March 2024, the estimated population of Taiwan is 23,923,276 people.
The currency in Taiwan is the Taiwan Dollar (TWD). The currency symbol is $.
Taiwan's Labor Standards Act defines permanent employees as those employed for continuous work under a non-fixed-term employment contract. A contract for continuous (as opposed to temporary, seasonal, or specific work) must always be non-fixed-term. Such contracts can be terminated with proper notice, which varies based on the employee's length of service. A fixed-term contract shall be considered to be non-fixed term upon its expiration in the following situations: Where an employer raises no immediate objection to an employee continuing their work. If a new contract is signed and, together with the previous contract, the total duration of employment is more than 90 days, the rules may apply as long as the gap between the two contracts is 30 days or less. However, these rules do not apply to fixed-term contracts for specific or seasonal work.
Taiwan's law does not require that employment contracts be concluded in writing. Exceptions to this general rule are that employment contracts with foreign nationals and training contracts with technical students must be in writing. Any written employment contract that is formed between an employee and an employer must include information regarding workplace, nature of work, working time, wages, leave, safety and health matters, etc. Any post-employment non-competition agreement between an employer and an employee is valid only if the employer has legitimate business interests to protect and the employee has access to the employer’s business secrets. The restrictions imposed by the agreement must be reasonable in terms of duration, geographical area, professional activities, and employment targets. The employer is also required to provide reasonable compensation for the losses the employee incurs due to the non-competition clause. If any of these conditions are not met, the agreement will be invalid. The non-competition period cannot exceed 2 years, and the monthly compensation must be at least 50% of the employee’s average monthly salary.
Taiwan's labor law allows the use of fixed-term contracts for work that is temporary in nature. It defines temporary work as "work of an unexpected and noncontinuous nature [that is not to] exceed 6 months." The term "temporary worker" is sometimes used to refer to the employees of labor dispatching agencies in Taiwan. Labor dispatching is when a labor dispatching agency dispatches its employee to a requesting business entity to provide labor services; the dispatched laborer is subjected to the command, supervision, and management of the requesting business entity. Labor dispatching agencies are employers of the workers they dispatch. These workers' wages, working hours, recesses, holidays, severance pay, and retirement benefits must be in accordance with the Labor Standards Act.
Although the Labor Standards Act of Taiwan does not explicitly define probationary periods, certain practices and legal principles apply. Taiwan's labor law allows employers and employees to determine a period of probation based on the nature of the work, and employers are expected to operate in good faith. If the employer terminates the employee during the probationary period, the employee is still entitled to severance pay.
Taiwan's labor law stipulates that regular working time may not exceed 8 hours a day or 40 hours a week. An employee must receive 2 regular days off every seven days. 1 of these days is considered regular leave (during which the employee can agree to work for overtime pay), and the other is a mandatory rest day (during which the employee may not agree to work). Employers must prepare and maintain employee attendance records for 5 years. The attendance records must record the attendance of employees daily and to the minute. Employers may not refuse when employees request duplicates or photocopies of the attendance records.
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Under Taiwan's labor law, employees are granted paid annual leave according to the number of years during which they've been employed with the same employer, as follows: 3 days for service between 6 months and 1 year 7 days for service between 1 and 2 years 10 days for service between 2 and 3 years 14 days for service between 3 and 5 years 15 days for service between 5 and 10 years 1 additional day for each year of service over 10 years up to a maximum of 30 days Compensation must be paid for annual paid leaves not used by employees due to contract termination. Unused annual leave may be carried over into the next year according to employer and employee agreement. However, if the leave is still unused by the end of the second year, wages must be paid for whatever leave was not used by the employee. Alternatively, these wages may be paid upon the termination of the employee's contract.
Taiwan's labor law provides medical leave for injury, sickness, or physical reasons to employees as follows: In the case of non-hospitalized conditions, the employee receives a total of 30 days in 1 year. In the case of employee hospitalization, the employee receives a leave not exceeding 1 year within 2 years. The sum of hospitalization and non-hospitalization sick leave should not exceed 1 year within 2 years. Where sick leave does not exceed 30 days in one year, 50% of the employee's salary must be paid during sick leave. The employer must make up the difference if Labor Insurance payments do not reach 50% of the salary. The employer must compensate the employee for any necessary medical expenses if the injury or sickness is due to an occupational accident. When an employee under medical treatment cannot work, the employer shall pay them compensation according to their preexisting wage. Effective January 1, 2026, employees who take no more than 10 days of ordinary sick or injury leave within a year are protected from adverse disciplinary action by their employers. When evaluating employee performance, employers must not rely solely on the number of sick days taken; instead, they must use a reasonable and comprehensive assessment of work performance as the standard for evaluation. Where a worker suffers adverse action due to taking ordinary sick leave, the employer shall bear the burden of proof as to the facts demonstrating that such adverse action is unrelated to the worker’s taking of ordinary sick leave
Taiwan's labor law entitles female employees to paid maternity leave of 8 weeks. Employees who have worked for more than 6 months are paid 100% of their regular salary during maternity leave, and employees who have worked for less than 6 months are paid 50% of their regular salary. During pregnancy, an employee can be transferred to less strenuous work. The employer must neither reject her application nor reduce her wages. From January 2022, employees are also entitled to 7 days' paid leave for prenatal checkups. Employers pay for 7 days' leave and can apply to the central government's competent authorities for reimbursement of 2 days of the period. Employees who suffer a miscarriage after the first 3 months of pregnancy are granted a maternity leave of 4 weeks. In the case of a miscarriage after being pregnant for over 2 months and less than 3 months, the female employee shall be permitted to discontinue work and shall be granted maternity leave for 1 week. In the case of a miscarriage after being pregnant for less than 2 months, the female employee shall be permitted to discontinue work and shall be granted maternity leave for 5 days. Employees also receive social security benefits equivalent to their 60 days' salary and delivery expenses (equal to 30 days' salary). In case of multiple births, the benefits are increased proportionately. In case of miscarriage, the benefits are reduced by 50%.
Taiwan's Act of Gender Equality in Employment grants 7 days' paid paternity leave to employees. Employers pay for 7 days' leave and can apply to the central government's competent authorities for reimbursement of the 6th and 7th days of the period. Either parent is also entitled to take unpaid parental leave not exceeding 2 years, provided that the following conditions are met: The employee has at least 6 months of service with the employer. The child has not yet reached the age of 3 years. The employee's spouse is working.
Employers must give advance notice to dismiss an employee as follows: When the employee has worked continuously for more than 3 months but less than 1 year, the notice period is 10 days. When the employee has worked continuously for more than 1 year but less than 3 years, the notice period is 20 days. When the employee has worked continuously for more than 3 years, the notice period is 30 days. Where an employer terminates the contract without serving an advance notice, they must pay the employee wages for the advance notice period. An employer can terminate a labor contract without advance notice for gross misconduct and violation of the labor contract.
Taiwan's labor law mandates that an employer who terminates an employment contract generally needs to provide severance pay to the employee. Employees who leave their employer's service upon the expiration of a fixed-term contract are not eligible for severance. Employees dismissed for misconduct are not eligible for severance benefits. Severance pay for employees who began employment before 2005 is generally governed by the Labor Standards Act (LSA). Under the LSA, an employer who terminates an employment contract must provide a month's salary for each year of service as severance pay to the employee. For employees who have been employed for less than 1 year, severance must be calculated proportionally; any employment period less than a month shall be calculated as 1 month. Employers must issue severance pay within 30 days after the labor contract termination. Severance pay is governed by the Labor Pension Act (LPA) for employees who began employment after 2005. Under the LPA, severance pay is based on seniority, and employees are paid an amount equal to half a month of average wages for every full year of employment. For periods of employment lasting less than 1 full year, a proportional amount must be paid. The total severance payment cannot exceed 6 months of average wages. Severance pay calculated under the LPA must be paid within 30 days after the labor contract termination.
In Taiwan, several programs belong to the social security framework. Labor Insurance, the Labor Pension System, and the National Pension Insurance are part of the social security framework for employees, but they serve distinct purposes and target different groups. While the minimum retirement age is 65, the law does not require employees to retire upon reaching the age of 65. Employees can work beyond that with their employer's agreement. Labor Insurance is a mandatory employment-based insurance program designed for formal sector employees, including private companies and public organizations, between the ages of 15 and 65. Under the Labor Pension program, employees hired after 2005 have individual pension accounts. Employers are required to deposit monthly contributions in these accounts, and employees' contributions are voluntary up to 6% of their monthly salary. Employees may start receiving benefits at the age of 60, regardless of employment status. Finally, the National Pension Insurance program offers coverage for employees between the ages of 25 and 65 who are ineligible for any other pension program. Employees must participate in this program. Employees covered by the Labor Insurance program are excluded from the National Pension Insurance program. Depending on the type of program, employees, employers, and the government share contributions to social insurance.
The mandatory Labor Insurance program provides survivors benefits in the event of death of an insured person who was eligible to receive an old-age or disability pension or an individual who had at least 15 years of contributions. Spouses, children, parents, grandchildren, and siblings are eligible beneficiaries. The pension paid to the survivors is 1.55% of the deceased's average monthly insurance salary per year of insurance coverage. The minimum pension is TWD 3,000 (New Taiwan dollars) per month. Survivors would receive lump sum benefits if the deceased employee had contributed for less than 15 years. Under Labor Occupational Accident Insurance, survivors receive a lump sum equal to 5 months of the insured person's average salary. If no survivors qualify, the payment is 10 months of the average salary. Under the Labor Pension System, survivors receive a lump sum plus 50% of the average monthly salary for the last 6 months if the insured dies before claiming benefits. If the insured was receiving a permanent disability pension, half of that amount is paid instead. Additional survivors can receive up to 20% extra. Under the National Pension program, when an insured employee dies before claiming benefits or dies during the effective period of insurance, their survivors are entitled to a monthly pension of 1.3% of the average monthly salary for each insurance coverage year. The minimum pension is TWD 4,049 per month.
In Taiwan, the mandatory Labor Insurance program provides benefits for temporary and permanent disabilities, offering hospitalization, medical, and disability pensions. Effective January 1, 2026, the Labor Occupational Accident Insurance and Protection Act requires every employer to enroll their employees in occupational-accident insurance from the first day of employment. For occupational injuries, the benefits are higher and include lump-sum compensation options. Permanent disability benefits are based on years of coverage and the severity of the disability, with additional allowances for dependents in specific cases. The Labor Pension System offers individual accounts for employees, and early pensions can be claimed in case of disability before the age of 60. The National Pension Insurance provides a disability pension for those with severe disabilities, contingent on residency, income, and asset conditions, with payments calculated based on the insured amount and coverage years, with a minimum pension of TWD 5,437. However, individuals cannot receive multiple disability benefits simultaneously.
Taiwan's tax code states that a comprehensive income tax is levied on the income earned by residents. Residents must pay tax on their income from sources within or outside Taiwan, while non-residents are taxed on income from sources within Taiwan. The income earned by a non-resident from sources in the country is taxed at the source. The following persons are considered residents in Taiwan: Persons with permanent residence in Taiwan Persons who have stayed in Taiwan for more than 183 days in a year Tax year runs from January 1 to December 31 in Taiwan. The tax brackets and rates of income tax on consolidated income are between 5% and 40%.
The following categories of visas are available in Taiwan:
Under Taiwan's law, an employer who hires a foreign individual must apply to the Ministry of Labor for a permit. Foreign workers are allowed to perform only the following types of work in Taiwan: Specialized or technical work Work as a director or manager or executive of a business invested in or set up by an overseas Chinese person or foreigner Work as a teacher at a public or private college, university, or school Work as a sports coach or athlete Religious, artistic, or show business work Work as a crew member of a merchant vessel, working vessel, etc. Marine fishing or netting work Household assistant or nursing work Workers in national major construction projects The duration of a work permit is 3 years, but it can be extended. Effective January 1, 2026, overseas Chinese and foreign students graduating with an associate's degree or higher in Taiwan can freely work during their 2-year extended residency period without needing to apply for a work permit, participate in relevant vocational training and internships, work part-time, or start a business. The new amendment allows graduates from the world's top 200 universities to apply for individual work permits in Taiwan and freely engage in professional work for up to 2 years. Foreign specialist professionals who plan to engage in professional work in the State may apply directly to the Ministry of Interior (NIA) for a four-in-one Employment Gold Card that combines work permit, resident visa, Alien Resident Certificate and re-entry permit. Before the NIA approves the issuance of an Employment Gold Card, it shall conduct reviews jointly with the Ministry of Labor and the Ministry of Foreign Affairs. This card is valid for up to 3 years, and can be renewed.
