First Time Being an Employer?
Building a strong team is one of the most critical aspects of running a successful business, especially for first-time employers. Whether you’re a small startup or expanding your enterprise, having the right employees can make or break your operations. So, how do you find the right people? And once you’ve hired them, what are your responsibilities as an employer? Here’s your beginner-friendly guide to navigating recruitment, insurance, and pension processes in Taiwan.
Key figures for 2026
| Item | 2026 |
|---|---|
| Minimum wage | NT$29,500 per month / NT$196 per hour |
| Minimum salary for foreign professionals | NT$47,971 per month |
| National Health Insurance | 5.17% of insured salary (employer 60%, employee 30%) |
| Labor Insurance: Taiwan nationals, foreign spouses of Taiwan nationals, APRC holders (incl. employment insurance) | 12.5% of insured salary (employer 70%, employee 20%) |
| Labor Insurance: other foreign employees (no employment insurance) | 11.5% of insured salary (employer 70%, employee 20%) |
| Labor Pension | 6% of monthly wage, paid by the employer (now also for foreign professionals, from 2026) |
| Annual leave | 3 to 30 days, depending on length of service |
How to recruit employees?
Most companies utilize online human resource platforms. Below are some of the most popular job banks in Taiwan:
Head Hunter
If you’re looking for more specialized or higher-level roles, headhunters can be an excellent resource. Companies like Adecco and Michael Page are well-known in Taiwan for matching employers with top-tier candidates. If your business requires Japanese-speaking staff, Reeracoen is a specialized recruiter for such roles.
Documents needed to register on a job bank
To register a company on Job Bank while prioritizing the protection of job applicants, the following documents and information are required:
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Basic Company Information:
- Full legal company name
- Company registration number (Uniform Company Number)
- Accurate company contact details (phone number, email, etc.)
- Physical company address, ensuring transparency for applicants
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Verified Business License:
- A verified and up-to-date scanned copy of the company’s business registration certificate or business license, to demonstrate that the company operates legally and ethically.
The minimum salary
Effective January 1, 2026, Taiwan’s minimum wage is NT$29,500 per month and NT$196 per hour, up from NT$28,590 and NT$190 in 2025. Employers must pay at least these amounts to all employees covered by the Labor Standards Act, including foreign employees.
The minimum Salary for a foreign professional worker
Foreigners employed as Foreign professional workers whose monthly salary shall not be lower than the average monthly salary published by the central competent authority. Currently, the amount of the salary standard is NTD 47, 971.
Leave - Sick, Maternity, Vacation, Absence, Holidays
Sick Leave
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Entitlement: Employees can take up to 30 days of sick leave per year.
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Payment: For the first 30 days, sick leave is compensated at 50% of the regular salary. Any additional sick leave beyond this period is unpaid.
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Hospitalization: If hospitalized, employees can take up to 1 year of unpaid sick leave over a two-year period
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Protection (from January 1, 2026): If an employee takes 10 days or fewer of sick leave in a year, the employer may not treat the employee unfavorably because of it, for example through a lower performance rating, transfer, pay cut or bonus deduction. Attendance bonuses may only be reduced in proportion to the leave taken.
Maternity Leave
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Duration: Female employees are entitled to a total of 8 weeks of paid maternity leave (taken around the birth: it can start up to 4 weeks before the due date, and at least 4 weeks must be kept for after the birth).
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Eligibility for Pay: To receive full pay during maternity leave, an employee must have worked for the employer for at least 6 months. If employed for less than 6 months, the employee receives 50% of wages.
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Miscarriage: 4 weeks if the pregnancy lasted 3 months or more; 1 week if 2 to 3 months; 5 days if less than 2 months.
Public Holidays
Following the 2025 amendment to the Act on Commemorative Days and Holidays, employees are entitled to paid time off on these national holidays:
See the full list of national holidays
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New Year’s Day (January 1)
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Lunar New Year: the day before New Year’s Eve, New Year’s Eve, and the first three days of the new year
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Peace Memorial Day (February 28)
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Children’s Day
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Tomb-Sweeping Day
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Labor Day (May 1)
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Dragon Boat Festival
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Teacher’s Day (September 28)
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Mid-Autumn Festival
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National Day (October 10)
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Taiwan Retrocession Day (October 25)
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Constitution Day (December 25)
An employee who works on a national holiday must be paid double wages for that day.
Annual Leaves and used annual leaves
Annual leave entitlement in Taiwan is based on an employee’s length of service and increases incrementally:
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3 days for employees who have worked for more than 6 months but less than 1 year.
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7 days for employees who have worked for 1 year but not more than 2 years.
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10 days for employees who have worked for 2 years but not more than 3 years.
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14 days for employees who have worked for 3 years but not more than 5 years.
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15 days for employees who have worked for 5 years but not more than 10 years.
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After 10 years of service, 1 additional day is added for each subsequent year, up to a maximum of 30 days of annual leave.
FAQ1: Are unused annual Leave settled in cash taxable?
Answer: the unused annual leave settled in cash in nontaxable.
According to the Ministry of Finance’s (MOF) Taishin Taxation No. 16713: When a profit-making enterprise terminates an employment contract or at the end of a year, paying the unused annual leave who have not yet taken the leave of absence, and if this is in accordance with Article 38 of the Labor Standards Act …..it shall be applied to exempt the employees from paying income tax.
- According to Article 38 of the Labor Standards Law, it is stated that. … The employer shall pay wages for the days of special leave not taken due to the end of the year or the termination of the contract. However, if the number of days not taken at the end of the year is postponed to the following year by mutual agreement between the employer and the employee, the employer shall pay wages for the number of days not taken at the end of the following year or at the termination of the contract. …
If the number of days of leave is following Article 38 of the Labor Standards Law and Article 39 of the same law, the unused leave pay settled in cash shall be exempted from the calculation of the employee’s income tax. However, if the company’s annual leave days are superior to the Standard Labor Act, only the statutory minimum leave payment is tax-exempt, while the superior portion settlement is taxable.
FAQ 2: Regulations of Leave-Taking of Workers
Note: The Regulations were amended twice in 2026. Effective January 1, 2026: (1) taking 10 days or fewer of sick leave a year may not lead to unfavorable treatment; (2) attendance bonuses may only be reduced in proportion to leave taken; (3) personal leave used to care for a family member may be taken by the hour. Effective October 1, 2026: (4) wedding leave was extended from 8 to 14 days with pay. Employers pay wages for days 9–14 as usual and may apply to the Bureau of Labor Insurance for a full subsidy of those wages. Workers who married before October 1, 2026 and had not used all 8 days within their leave period are also entitled to 14 days. Article 2 below reflects the October 2026 amendment; the other articles are the earlier English translation.
Article 1 The Rules are prescribed pursuant to Article 43 of the Labor Standards Act (hereinafter referred to as the Act).
Article 2 A worker who marries shall be entitled to fourteen days of wedding leave with pay.
Article 3 Funeral leave of a worker shall be given according to the following stipulations:
- On the death of parent, foster-parent, step-parent, spouse, a worker shall be entitled to eight days of funeral leave with pay;
- On the death of grand-parent, son or daughter, parent of spouse, foster-parent or step-parent of spouse, a worker shall be entitled to six days of funeral leave with pay;
- On the death of great-grandparent, brother or sister, grand-parent of spouse, a worker shall be entitled to three days of funeral leave with pay.
Article 4 When a worker must receive medical service or rest on account of ordinary injury, sickness, or physical reasons, he shall be entitled to ordinary sickness leave according to the following provisions:
- For the non-hospitalized, a total of less than thirty days in one year;
- For the hospitalized, not exceeding one year;
- The total of hospitalized and non-hospitalized sick leave shall not exceed one year; when a worker diagnosed with cancer（including carcinoma in situ）or pregnancy with threatened abortion by physician , out-patient treatment period shall be included to hospitalized sick leave. Where accounted ordinary sick leave does not exceed thirty days in one year, fifty percent of salary shall be paid. In cases where Labor Insurance payments do not reach fifty percent of salary, the employer shall make up the difference.
Article 5 In the event of the ordinary sick leave exceeding the time limit mentioned in Paragraph 1 of the proceeding Article, and the worker has not recovered after obtaining normal leave or special leave, he shall be entitled to work suspension without pay for a maximum period of one year.
Article 6 In the event of disability, injury, or sickness on account of occupational accident, a worker shall be entitled to occupational sickness leave during the period of medical treatment or recuperation.
Article 7 In the event of matters which a worker must personally deal with, he shall be entitled to normal leave without pay not exceeding fourteen days in one year.
Article 8 A worker shall be entitled to public leave with pay according to legal regulations, the time limit of which shall be determined by actual requirements.
Article 9 An employer shall not deduct full-attendance bonus payment from the worker who has either taken wedding, funeral, occupational sick leave, or public leave. This shall also apply in the case of a miscarriage after being pregnant for less than three months, when the worker takes ordinary sickness leave without taking maternity leave.
Article 10 When a worker demands a leave, he shall make prior oral or written statements giving the reasons and time for such a leave; but, in case of emergency, he may entrust some one to make the leave request for him. The employer may demand the worker to submit relevant documentary evidence.
Article 11 In the event of violations of the stipulations of the Rules on the part of an employer or worker, the competent authority may deal with them in accordance with the relevant stipulations of the Act.
Article 12 The Rules shall become effective on the day of promulgation.
Labor Insurance and Retirement Benefits Programs
All employers are required to enroll their employees in the following mandatory programs:
1. National Health Insurance Program, 2. Labor Insurance Program and 3. Retirement Benefits (Labor Pension).
Who pays what in 2026 (as % of insured monthly salary)
| Program | Employee pays | Employer pays |
|---|---|---|
| National Health Insurance | 1.55% per person insured | 4.84% |
| Labor Insurance: Taiwan nationals, foreign spouses, APRC holders (incl. employment insurance) | 2.50% | 8.75% |
| Labor Insurance: other foreign employees (no employment insurance) | 2.30% | 8.05% |
| Labor Pension | Optional, up to 6% | 6.00% |
| Total for a Taiwan national with no dependents | 4.05% | 19.59% |
- Health insurance: the employee also pays 1.55% for each dependent enrolled (up to 3). The employer’s 4.84% already includes an average dependent factor (5.17% × 60% × 1.56), so it does not change with the employee’s family.
- The employer also pays occupational accident insurance, at a rate that depends on the industry.
- Labor insurance is capped at an insured salary of NT$45,800, so the employer’s share is lower for higher salaries: about 15% at NT$100,000 a month.
- Rates effective January 1, 2026.
Want the exact amounts for a specific salary? Use our Labor and Health Insurance Calculator.
1. National Health Insurance (NHI)
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Mandatory Enrollment: All Taiwanese citizens with official residency must enroll. Foreign employees with a residence permit (ARC) are enrolled by the employer from their first day of work; other foreign residents join after 6 months in Taiwan. See National Health Insurance for foreigners for the full rules.
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Coverage: The NHI provides access to a wide range of medical services, including inpatient and outpatient care, prescription drugs, traditional Chinese medicine, and dental services.
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Premium rate: 5.17% of the insured monthly salary, shared by the employer (60%), the employee (30%) and the government (10%).
The formulas used to calculate the premium are:
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Employee: insured salary × 5.17% × 30% × (1 + number of dependents, up to 3)
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Employer: insured salary × 5.17% × 60% × 1.56
2. Labor Insurance
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Coverage: This program covers various aspects such as work-related injuries, occupational diseases, maternity benefits, and unemployment insurance.
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Benefits: Employees receive compensation for medical expenses related to work injuries, as well as a portion of their salary during periods of disability or unemployment.
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Premium rate: 12.5% of the insured monthly salary (11.5% ordinary accident insurance plus 1% employment insurance), shared by the employer (70%), the employee (20%) and the government (10%). Employment insurance covers Taiwan nationals, foreign spouses of Taiwan nationals with a residence permit, and foreign professionals with permanent residence (APRC). Other foreign employees are covered by labor insurance only, at 11.5%.
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Occupational accident insurance: paid entirely by the employer. The rate depends on the industry.
3. Labor Pension
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Pension Scheme: Under the Labor Pension Act, employers must contribute a minimum of 6% of an employee’s monthly salary to the employee’s individual pension account. This covers Taiwan nationals, foreign spouses of Taiwan nationals, APRC holders and, from January 1, 2026, foreign professionals doing professional work, with or without APRC (Article 24 of the Act for the Recruitment and Employment of Foreign Professionals). Blue-collar migrant workers are not covered.
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Withdrawal: Employees can claim their pension account from age 60. Earlier payment is only possible in limited cases such as severe disability, or to survivors on death; leaving the job or leaving Taiwan does not allow early withdrawal.
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Ratio for employees of private companies: Employer 100% and the latest rate is currently fixed at 6% of the insured monthly salary. In addition to the mandatory employers’ contribution, employees may contribute voluntarily additional sums, a maximum 6% of their monthly wages to their pension accounts.
These mandatory programs aim to provide essential health care and financial security for employees in Taiwan, ensuring that both local and foreign workers have access to necessary services and support throughout their employment.
Frequently asked questions
FAQ 1. Requirements for Full Pay During Maternity Leave in Taiwan?
Full pay: To receive full pay during maternity leave in Taiwan, the employee must have worked for their employer for a minimum period of six months.
If this requirement is met, female employees are entitled to eight weeks of paid maternity leave, taken around the birth: it can start up to 4 weeks before the due date, and at least 4 weeks must be kept for after the birth.
50% pay: employees who haven’t completed six months of service are still eligible for maternity leave but will receive 50% of their wages during this period.
FAQ 2: We have hired an employee in Taiwan and designated him as the director of our Taiwan company. How do insurance and pension benefits change for an employee who becomes a director?
Answer:
Here’s how insurance and pension benefits change for an employee in Taiwan who becomes a director, according to the sources you provided:
●Change in Employment Relationship: In Taiwan, when an employee transitions to the role of a director, their relationship with the company is no longer classified as an employer-employee relationship.
●Impact on Pension Benefits: As a result of this change in relationship, directors are not covered by the Employment Insurance Act, and the company can no longer contribute to their pension, which is typically 6% of their salary. If they actually work for the company, they may make voluntary contributions themselves of up to 6% of their salary (available to Taiwan nationals, foreign spouses of Taiwan nationals and permanent residents).
●Changes in Insurance Contributions: While directors lose out on pension contributions, they may still join the Labor Insurance scheme voluntarily if they actually work for the company. However, this shift also leads to an increase in their personal contributions for both National Health Insurance (NHI) and Labor Insurance. Their contribution rises from about 2% to 9% of their salary.
●Financial Implications: In essence, the employee who becomes a director experiences a trade-off. They face increased personal insurance contributions and the loss of company pension contributions. To offset these financial drawbacks, companies sometimes offer a salary raise of over 15%.
Example:
Let’s say David, a Taiwan employee, earns 100,000 per month. After being promoted to director, his salary is increased by 10,000, bringing it to 110,000.
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Before promotion: David’s personal contribution to health and labor insurance is around 2% of his salary ( 2,000), while the company contributes around 15% (about 15,000).
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After promotion: As a director, his personal contribution jumps to 9% ( 9,000), and he loses the company’s pension contribution of TWD 6,000.
In total, David will have to pay an additional TWD 7,000 (TWD 9,000 - TWD 2,000) in personal insurance contributions, and he also loses TWD 6,000 in company pension contributions. Despite the TWD 10,000 salary raise, his total monthly loss is TWD 13,000.
In such cases, companies sometimes offer a raise of over 15% to compensate for the increased insurance burden and the loss of pension contributions.
FAQ 3: Michael is an American who set up a company in Taiwan. Michael is the director and also the manager of the company. The company pays a salary monthly. What kind of insurance plan and pension plan can he get for himself?
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Health Insurance: Michael, as an employee of the company, Michael is required to enroll in Taiwan’s National Health Insurance (NHI) plan. This is compulsory for all residents, including company managers.
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Labor Insurance:
- (A) Labor Insurance is designed for employees. If Michael is the only employee, he cannot enroll in the Labor Insurance plan.
- (B) However, if the company has additional employees, Michael can enroll in the Labor Insurance plan.
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Labor Pension: As Michael is also the employer, the Labor Pension system does not apply to employers. This benefit is reserved for employees; he is not eligible for the pension plan.
FAQ 4: Can a Representative Office(RO) enroll health insurance, labor insurance, and pension for its employees in Taiwan?
Answer:
Yes, a Representative Office (RO) in Taiwan can enroll its local employees in health insurance, labor insurance, and the pension system. Here’s a breakdown of how each system applies:
- National Health Insurance (NHI):
The National Health Insurance program is mandatory for all employees in Taiwan, including those working for Representative Offices.
- Labor Insurance:
Similar to health insurance, labor insurance is compulsory for all employees working in Taiwan. A Representative Office must register for labor insurance and ensure its employees are covered, which includes protections for work-related accidents, injuries, illness, and maternity benefits.
- Labor Pension System:
Under Taiwan’s Labor Pension Act, companies, including Representative Offices, are required to contribute to employees’ pension funds.
Thus, even though a Representative Office cannot engage in direct business activities, it is still considered an employer and must comply with Taiwan’s labor and insurance laws for its employees.
FAQ 5: David, a Taiwan national, works at company ABC and makes NT$34,800 per month. His wife is a full-time housewife and they have no kids. What are the contributions for him and his employer?
Based on 2026 rates, David’s monthly contributions are:
| David | Employer | |
|---|---|---|
| National Health Insurance | 1,080 (540 × 2) | 1,684 |
| Labor Insurance (incl. employment insurance) | 870 | 3,045 |
| Labor Pension (6%) | — | 2,088 |
| Total | 1,950 | 6,817 |
David’s take-home pay is NT$34,800 − NT$1,950 = NT$32,850. The company’s total monthly cost is NT$34,800 + NT$6,817 = NT$41,617, plus occupational accident insurance, which depends on the industry.
Want the exact amounts for a specific salary? Use our Labor and Health Insurance Calculator.