Under Taiwan’s Labor Standards Act, an employee who has worked continuously for the same employer for 6 months earns 3 days of paid annual leave. After 1 year the entitlement is 7 days, then 10, 14 and 15 days, and from the 10th year one more day per year, up to 30 days. In Chinese the leave is called 特別休假 (特休 for short), often translated as “special leave”; the official English translation of the Act calls it “annual paid leave”.
The employee, not the company, picks the dates. Days not taken by the end of the leave year, or when employment ends, must be paid in cash unless both sides agree to carry them over. A “use it or lose it” policy is not allowed.
The same rules apply to foreign employees of a Taiwan company or branch.
How many days
Service counts from the hire date, and each entitlement is earned on the day that length of service is reached.
| Length of continuous service | Days of annual leave |
|---|---|
| 6 months to under 1 year | 3 |
| 1 year to under 2 years | 7 |
| 2 years to under 3 years | 10 |
| 3 years to under 5 years | 14 per year |
| 5 years to under 10 years | 15 per year |
| 10 years and over | 16 at 10 years, plus 1 day for each further year, up to 30 |
The 3 days earned at 6 months and the 7 days earned at 1 year are separate entitlements. An employer cannot treat the 3 days as part of the 7: an employee who reaches 1 year of service has earned 10 days in total.
Anniversary year or calendar year
The law lets employer and employee agree on the period in which leave is used:
- Anniversary year: each year counted from the hire date. The 3 days earned at 6 months are used within the following 6 months.
- Calendar year: 1 January to 31 December.
- Fiscal year or another agreed year: for example, the company’s accounting year.
A calendar year puts all staff on one cycle. The Ministry of Labor accepts it if each entitlement is split proportionally between calendar years and the total never falls below the statutory schedule. The two sides may agree to round a partial day up to a full day.
When employment ends partway through a leave year, the employer must switch back to the anniversary method: count the days actually earned from the hire date, subtract the days taken, and pay for the rest.
Who decides the dates
The employee schedules the leave. If the business has an urgent operational need, or the employee has personal reasons, either side can ask to adjust the dates, but the change must be agreed. The employer cannot assign leave dates on its own, for example by putting staff on leave on a make-up workday.
Within 30 days after an employee qualifies for leave, the employer must tell the employee to schedule it.
Unused leave: payout or carry-over
At the end of each leave year the employer must pay for every day not taken, whatever the reason. Payment is due on the agreed payday or within 30 days after the leave year ends.
The two sides may instead agree to carry the unused days over to the next year. Carried-over days are used first when the employee takes leave in the next year. Any of them still unused at the end of that year, or when employment ends, must be paid, using the daily wage from the end of the original leave year.
When employment ends, for any reason, including resignation, all unused days must be paid with the final wages.
How the payout is calculated. Unused days × one day’s wage. For a monthly-paid employee, one day’s wage is the wages for normal working hours in the last month before the leave year ended (or before employment ended), divided by 30. Using base salary alone is not correct, and a year-end bonus does not replace the payout.
Foreign employees
The Act makes no distinction by nationality. A foreign employee of a Taiwan company or branch earns, schedules and is paid for annual leave exactly like a local employee. Domestic caregivers and household helpers hired by families are not covered by the Act; their leave follows their contract.
Example (hypothetical)
Mei is hired on 15 March 2025 at a monthly wage of NT$45,000 for normal working hours.
Anniversary method
- 15 September 2025: 3 days, to be used by 14 March 2026.
- 15 March 2026: 7 days, for 15 March 2026 to 14 March 2027.
- 15 March 2027: 10 days.
- 15 March 2028: 14 days, and 15 March 2030: 15 days.
FAQ
Can a company have a "use it or lose it" annual leave policy in Taiwan?
No. Unused days must be paid unless both sides agree to carry them over. Nor can a company agree in advance that employees take cash instead of leave; only days actually left unused are paid.
Does a probation period count toward annual leave?
Yes. Service counts from the first day of employment. Periods of unpaid leave of absence, such as unpaid parental leave, may be left out of the service count unless the two sides agree otherwise.
Do part-time employees get annual leave?
Yes, prorated by their normal working hours against a full-time employee’s. A part-timer who works as many days a week as full-time staff, only fewer hours a day, gets the full statutory days.
Can the year-end bonus count as payment for unused annual leave?
No. The Ministry of Labor treats the payout for unused leave and a year-end bonus as separate. Paying a bonus does not settle unused leave.
This article is general information based on Taiwan law as of November 2026, not advice on any specific case. Examples are hypothetical.