Hiring in Taiwan: Complete Guide 2027
Everything you need to know about hiring and managing employees in Taiwan
Overview
Taiwan runs the world's semiconductor supply chain from a workforce of about 12 million, and the Labor Standards Act governs almost every private employment contract. An employer pays labour insurance at 70% of a 12.5% rate on a salary capped at NT$45,800, health insurance at 4.84% and a 6% pension contribution: 17 to 20% on a mid-level salary, less above the caps. Dismissal needs a ground from article 11 or 12 and 10 to 30 days' notice. Without a Taiwan company, an EOR is the route in. Since 2019 the Act calls that arrangement dispatch, and the contract has to say so.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Taiwan
Payroll in Taiwan is monthly in TWD. The employer registers as an insurance unit with the Bureau of Labor Insurance and the National Health Insurance Administration; cover and the pension account start on day one. In 2026 labour insurance is collected at 12.5% (11.5% ordinary risk plus 1% employment insurance), split 70% employer, 20% employee, 10% government, on a salary capped at NT$45,800: about 8.75% for the employer. Health insurance is 5.17%: 4.84% for the employer after the average dependant factor, 1.55% for the employee, plus a 2.11% supplementary premium on bonuses above the threshold. The employer adds at least 6% of wages to the pension account, on a table capped at NT$150,000, and an occupational accident premium of around 0.2%. Minimum wage: NT$29,500 a month, NT$196 an hour, from 1 January 2026. An EOR files the monthly premium statements, withholds income tax and issues the withholding statements by the end of January.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract is the norm; Traditional Chinese prevails
- Probation is contractual, usually 3 months
- Dispatch rules apply when an agency employs the worker
Leave & Time Off
- Annual leave from 3 days after 6 months to 30 days
- Sick leave 30 days a year at half pay
- Maternity leave 8 weeks, paternity 7 days
Termination Rules
- Notice of 10, 20 or 30 days by length of service
- Severance half a month per year, capped at 6 months
- Grounds limited to articles 11 and 12 of the Act
COMPLIANCE
Dispatch Rules and Termination Compliance in Taiwan
Two chapters of the Labor Standards Act decide how an EOR contract is written. The 2019 dispatch chapter treats a firm that employs a worker and places them with a client as a dispatch agency: the client must not select the worker before the agency signs them (article 17-1) and is jointly liable for wages the agency fails to pay (article 22-1). An employer may end a contract only on the grounds of article 11, with 10, 20 or 30 days' notice by length of service, or article 12 for cause, within 30 days of learning of it. Severance under the Labor Pension Act is half a month's average wage per year, capped at six months. Mass layoffs fall under the Act for Worker Protection of Mass Redundancy, with 60 days' notice to the authority.
Key Challenges
- The 2019 dispatch chapter of the Labor Standards Act: the client must not pick the worker before the agency signs them
- Dismissal only on the grounds of articles 11 and 12
- Three registrations on day one: labour insurance, health insurance, pension account
- Overtime capped at 46 hours a month, paid at 4/3 then 5/3 of the hourly wage
- Work permits for foreign professionals go through the Workforce Development Agency
Country Highlights
Advantages
- The world's semiconductor and electronics supply chain
- Employer on-cost of 17 to 20%, under most of Western Europe
- Labour insurance capped at NT$45,800 a month, so senior salaries cost less in percentage
- Minimum wage NT$29,500, reviewed every January
- Employment Gold Card: foreign professionals can work without a sponsor
Popular Industries & Roles
Technology
Avg. Salary: NT$1M-NT$2M
Taipei and Hsinchu employ software, firmware and AI engineers around the chip design houses and the ODM groups
Semiconductors & Electronics
Avg. Salary: NT$1.2M-NT$2.5M
Hsinchu Science Park is the centre of the world's foundry and packaging industry, with process and equipment engineers in constant demand
Financial Services
Avg. Salary: NT$900k-NT$1.6M
Taipei's banks, insurers and fintech units hire risk, compliance and data roles, with Mandarin and English both expected
Top 3 Providers in Taiwan
Based on our analysis of pricing, compliance record, service quality, and customer reviews
INS Global
- Founded Shanghai 2006; 18 years of EOR
- EOR from $299/month, contractors $49
- 3,200+ clients; BP, Areva, Technip named
- 160+ countries, own-entity model stated
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
AYP Group
- APAC-owned entities in 14+ markets
- From $488/month EOR; $28/month payroll
- JuzTalent HRIS platform included
- No minimum headcount, transparent pricing
Frequently asked questions
Hiring in Taiwan through an EOR, in short.
Need a shortlist?
Two minutes, ten providers ranked for your brief.
How much does an employer pay on top of salary in Taiwan?
Employer contributions in Taiwan come to ≈17–20%; the largest mandatory line is Pension 6%. With the other statutory benefits and a typical EOR fee, budget ~35–45% on top of gross salary.
What does an EOR charge per employee in Taiwan?
Published EOR fees in Taiwan run $400–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Taiwan pay in tax and contributions?
Income tax is 5–40% progressive and employee social contributions are ≈3.9% (1.55% health insurance), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Taiwan?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Taiwan?
INS Global, Deel and AYP Group hold the first three places in our ranking for hiring in Taiwan. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Taiwan.
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
.png)
.png)
Bangladesh
China
Georgia
Hong Kong
India
Indonesia
Israel
Japan
Jordan
Kazakhstan
Malaysia
Pakistan
Philippines
Qatar
Saudi Arabia
Singapore
South Korea
Thailand
Turkey
United Arab Emirates
Vietnam
