Employment contracts in Taiwan must include the job title and responsibilities, compensation details such as salary, bonuses, and pay cycle, as well as work hours and contract duration for fixed-term agreements. They should also outline the notice period for termination or resignation and specify entitlements to annual and sick leave. While contracts must be in Chinese, bilingual versions are common in international companies.
Employer of Record (EOR) Taiwan
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Taiwan is handled efficiently and in full compliance with local regulations.
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The most affordable solution on the market, saving you time and money.
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We draft bilingual contracts that meet Taiwanese labor laws,
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in Taiwan
Health checks are not mandatory in Taiwan unless the role involves specific health and safety risks (e.g., healthcare, food industry, or physical labor).
Salaries should be outlined as gross annual compensation, divided into monthly payments. The contract should also specify any additional payments such as bonuses, benefits, and overtime.
- Job title and description
- Salary & benefits (including any bonuses or allowances)
- Work hours and leave entitlements
- Non-compete or confidentiality clauses (if applicable)
- Probationary period (if applicable)
Choosing an EOR in Taiwan ensures compliance with strict Taiwanese labor laws, simplifies payroll processes, and eliminates the need for establishing a local entity. EOR services in Taiwan streamline hiring, manage employment contracts, and handle benefits, allowing businesses to scale efficiently.
in Taiwan
1. What are the key steps in employee onboarding in Taiwan?
- Tax Identification: Employees must obtain a Tax Identification Number (TIN) in Taiwan.
- Social Insurance: Employees must register with the Taiwan National Health Insurance (NHI) and the Labor Insurance (LI) system.
- Bank Account: A local bank account is often required for salary payments.
- Work Visa: Non-Taiwanese nationals require a valid work visa.
2. When are pre-employment health checks required in Taiwan?
Health checks are typically not mandatory unless the role involves high health risks (e.g., healthcare or industrial jobs).
3. What documents are essential for onboarding in Taiwan?
- Taiwanese ID or Work Permit (for foreign employees)
- Social Insurance Enrollment
- Bank Account Information
- Tax Identification Number (TIN)
4. Why businesses in Taiwan need EOR services?
Taiwan’s complex labor regulations and unique employment requirements make EOR services vital for businesses. EOR services handle compliance with labor laws, payroll processing, and benefits management, enabling companies to focus on operations without the burden of setting up a local entity.
5. How does EOR in Taiwan different from other countries?
Taiwan’s labor laws emphasize worker rights and involve detailed compliance requirements, such as mandatory labor insurance and severance. EOR services in Taiwan handle these specific regulations, unlike other regions with simpler labor frameworks.
in Taiwan
Employees in Taiwan are typically paid monthly in New Taiwan Dollars (TWD). In addition to their base salary, employees may receive a 13th-month bonus around Lunar New Year and a 14th-month bonus in summer.
Remote employees must be treated the same as in-office employees, with the same salary, benefits, and adherence to Taiwanese tax laws. Payroll processing must comply with local tax and social security regulations.
Taiwan’s minimum wage is set by the government, and it varies depending on the sector and industry. The minimum monthly wage is NT$25,250.
In Taiwan, the 13th salary is typically paid in December as an end-of-year bonus. The 14th salary, when offered, is usually paid around Lunar New Year (January or February). These bonuses are not mandatory but are common in many companies.
in Taiwan
1. What are the income tax rates in Taiwan?
Taiwan uses a progressive tax system with rates ranging from 5% to 40%, depending on income levels:
- Up to TWD 540,000: 5%
- TWD 540,001 to TWD 1,210,000: 12%
- TWD 1,210,001 to TWD 2,420,000: 20%
- TWD 2,420,001 to TWD 4,530,000: 30%
- Above TWD 4,530,000: 40%
Additionally, local taxes (municipal and regional) may apply.
2. How are non-residents taxed in Taiwan?
Non-residents are taxed at a flat rate of 18% on income derived from Taiwanese sources.
3. When should annual tax returns be submitted in Taiwan?
Annual tax returns must be submitted by May 31 of the following year. Employers are responsible for withholding taxes and submitting them monthly.
4. What are the social security contribution requirements?
Both employers and employees contribute to social security, including health insurance and labor insurance. Employer contributions range from 17.25% to 20% of the employee’s salary, while employees contribute 9%.
in Taiwan
Employees are entitled to a minimum of 7 days of paid annual leave after their first year of employment. This increases with seniority.
Employees are generally entitled to annual leave after completing a 6-month probationary period.
- Maternity Leave: Female employees are entitled to 8 weeks of maternity leave, paid at 60% of their salary during this period.
- Paternity Leave: Fathers are entitled to 5 days of paid paternity leave.
Public holidays are generally paid days off. Taiwan observes 13 national holidays annually, and this number can vary regionally.
BENEFITS
in Taiwan
1. What mandatory benefits must employers provide in Taiwan?
Employers are required to provide:
- Social Insurance (covering health, pension, and unemployment benefits)
- Accident Insurance (for workplace accidents)
- Paid Annual Leave (7 days minimum)
- Sick Leave (paid up to 1 month)
2. Is there a home office allowance for remote employees in Taiwan?
In Taiwan, there is no national requirement for a home office allowance. However, some companies may provide stipends to cover remote work expenses, such as utilities or internet costs.
3. Are meal allowances commonly provided in Taiwan?
Meal allowances are not legally required but are commonly provided in certain industries or as part of company benefits.
4. What additional benefits are typical in Taiwan?
Common benefits include:
- Health insurance (private or supplementary)
- Commuting allowances
- Bonuses and allowances for employees working in high-demand sectors.
TERMINATIONS
in Taiwan
The standard notice period depends on the length of employment:
- Up to 3 months: 3 days’ notice
- 3 months to 1 year: 10 days’ notice
- Over 1 year: 30 days’ notice
Yes, employees can be terminated without notice for serious misconduct (e.g., theft or fraud), but they must still receive severance.
Severance is based on the employee’s length of service and salary, with a standard formula being 1 month’s salary per year worked.
Mutual termination involves both parties agreeing to end the employment relationship, often with a severance package. Employees may also be entitled to unemployment insurance benefits.
FAQs
1. What is EOR in Taiwan?
An EOR in Taiwan enables companies to hire employees without establishing a local subsidiary. The EOR handles payroll, taxes, benefits, and employment contracts, ensuring compliance with Taiwan’s labor regulations and allowing for seamless business expansion.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Taiwan?
Using Globaine’s EOR solution eliminates the need to establish a local entity, saving on legal, administrative, and operational costs, such as office setup and registration fees, while ensuring compliance with Taiwan’s labor laws.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.
4. Can Globaine handle complex employment scenarios in Taiwan, such as drafting bilingual contracts and managing terminations?
Yes, Globaine can manage complex employment scenarios, including drafting bilingual contracts in Mandarin and English and handling terminations, ensuring compliance with Taiwan’s labor laws and minimizing risks.
5. How GlobainePEO Makes Hiring in Taiwan Easy?
GlobainePEO streamlines hiring in Taiwan by handling payroll, benefits, and compliance with labor laws. Their EOR services eliminate the need for a local entity, ensuring hassle-free onboarding and legal adherence for a smooth business expansion.
6. How does Employer of Record work in Taiwan?
In Taiwan, an EOR manages payroll, tax compliance, benefits, and employment contracts while adhering to local labor laws. This allows businesses to hire employees without a physical presence, streamlining HR processes and expansion.
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