In 2026, an employee in Taiwan earning NT$50,000 a month and resident for tax purposes takes home about NT$48,070. Only three items come out of a normal monthly salary: the employee’s share of Labor Insurance and Employment Insurance, the employee’s share of National Health Insurance (NHI), and income tax withheld, which is often zero at this salary level.
The employer pays considerably more on top: its own share of the same insurance, occupational accident insurance and a Labor Pension contribution of at least 6%. On a NT$50,000 salary the total cost to the employer is about NT$59,500.
Foreign employees follow almost the same arithmetic. The two differences that matter are Employment Insurance, which most foreigners are not covered by, and tax residency, which decides whether salary tax is withheld at 18%.
What comes out of the employee’s pay
Each insurance premium is calculated on an insured salary, not on the actual salary. The actual monthly wage is placed in a bracket, and the premium is charged on the top of that bracket.
| Item | Rate (2026) | Employee pays | Employer pays | Insured salary for NT$50,000 |
|---|---|---|---|---|
| Labor Insurance (ordinary accident) | 11.5% | 20% | 70% | NT$45,800 (the maximum) |
| Employment Insurance | 1% | 20% | 70% | NT$45,800 (the maximum) |
| Occupational accident insurance | By industry | 0% | 100% | NT$50,600 |
| NHI | 5.17% | 30% × (1 + dependents, max 3) | 60% × 1.56 | NT$50,600 |
| Labor Pension (employer) | At least 6% | 0% | 100% | NT$50,600 |
| Labor Pension (voluntary) | Up to 6% | 100% | 0% | NT$50,600 |
The government pays the remaining 10% of Labor Insurance, Employment Insurance and NHI. The 1.56 in the employer’s NHI share is the employee plus an average of 0.56 dependents, so the employer pays the same amount whether or not the employee actually has dependents. The employee’s NHI share, by contrast, multiplies for each dependent enrolled under them, up to three.
You can try other salaries with our Labor and Health Insurance calculator. It includes Employment Insurance for every employee, so for a foreign employee who is not covered, leave out that line.
Worked example: NT$50,000 a month
Hypothetical employees, all with no dependents and no voluntary pension contribution. The foreign employees are foreign professionals hired in 2026, without permanent residence and not married to a Taiwanese national.
| Monthly amount (NT$) | Taiwanese employee (resident) | Foreign professional (resident) | Foreign professional (non-resident) |
|---|---|---|---|
| Gross salary | 50,000 | 50,000 | 50,000 |
| Labor Insurance: 45,800 × 11.5% × 20% | −1,053 | −1,053 | −1,053 |
| Employment Insurance: 45,800 × 1% × 20% | −92 | 0 | 0 |
| NHI: 50,600 × 5.17% × 30% | −785 | −785 | −785 |
| Income tax withheld | 0 | 0 | −9,000 (18%) |
| Take-home pay | 48,070 | 48,162 | 39,162 |
And what the employer pays (assuming an industry with a 0.12% occupational accident rate, such as computer programming):
| Monthly amount (NT$) | Taiwanese employee | Foreign professional |
|---|---|---|
| Gross salary | 50,000 | 50,000 |
| Labor Insurance: 45,800 × 11.5% × 70% | 3,687 | 3,687 |
| Employment Insurance: 45,800 × 1% × 70% | 321 | 0 |
| Occupational accident insurance: 50,600 × 0.12% | 61 | 61 |
| NHI: 50,600 × 5.17% × 60% × 1.56 | 2,449 | 2,449 |
| Labor Pension: 50,600 × 6% | 3,036 | 3,036 |
| Total employer cost | 59,554 | 59,233 |
If the employee also makes a voluntary 6% pension contribution (NT$3,036), take-home pay falls by that amount, but the money goes into the employee’s individual pension account and is not taxed as salary in that year.
Employment Insurance: who is covered
Employment Insurance covers employees aged 15 to 65 who are Taiwanese nationals, or foreigners married to a Taiwanese national with household registration in Taiwan who have permission to reside and work here. From 1 January 2026, foreign professionals who hold permanent residence are also covered. Other foreign employees are enrolled in Labor Insurance only.
Labor Pension for foreign professionals
Since 1 January 2026, foreign professionals doing professional work are covered by the Labor Pension Act even without permanent residence, so the employer must contribute at least 6% for them, as for a Taiwanese employee. Those employed before 2026 could choose in writing, by 30 June 2026, to stay with the old retirement system under the Labor Standards Act; that choice cannot be reversed. For anyone who stayed in the old system, the employer must instead set aside a monthly labor retirement reserve of 2% to 15% of total wages in a dedicated account.
Blue-collar migrant workers follow different rules and are not covered by this article.
Income tax withholding
Residents. The employee chooses one of two methods. Under the salary withholding table, nothing is withheld in 2026 for a single employee with no dependents until monthly pay reaches NT$90,501. Under the flat method, the employer withholds 5% of monthly pay, but nothing when the tax would be NT$2,000 or less. On NT$50,000 that is NT$2,500, which would make take-home pay NT$45,570 for the Taiwanese employee.
Non-residents. A foreigner who stays in Taiwan for less than 183 days in a calendar year is a non-resident for that year. Salary is withheld at 18%, or 6% if the monthly salary is no more than 1.5 times the minimum wage: NT$44,250 in 2026. The minimum wage rises to NT$30,900 from 1 January 2027, which moves the threshold to NT$46,350.
Songjer CPA’s view
- Quote and contract in gross terms. Net pay depends on dependents, the withholding method chosen and residency, so it changes between employees and between years. A gross monthly figure is the only number that stays fixed.
- Report the insured salary that matches the real wage. The brackets follow the employee’s actual monthly wage. When a salary rises into a new bracket, report the change so that premiums and future benefits are based on the correct amount.
- Recheck a foreign employee’s status when it changes. Permanent residence (for a foreign professional) or marriage to a Taiwanese national brings the employee into Employment Insurance, and the employer must report the enrollment at that point.
- Watch the 183-day count for new arrivals. A foreign hire who arrives late in the year, for example in September, cannot reach 183 days in that calendar year, so that year’s salary is non-resident salary taxed at 18% or 6%.
- Budget 18% to 19% on top of salary. In our NT$50,000 example the employer’s statutory costs add NT$9,233 to NT$9,554 a month, before any bonuses.
FAQ
Is there a maximum employee deduction for Labor Insurance?
Yes. The highest insured salary for Labor Insurance and Employment Insurance is NT$45,800, so in 2026 an employee pays at most NT$1,145 a month for both (NT$1,053 without Employment Insurance), however high the salary. NHI has a much higher ceiling of NT$313,000, so the NHI deduction keeps rising with salary.
Do foreign employees pay Employment Insurance in Taiwan?
Only some do: foreigners married to a Taiwanese national with household registration who have permission to reside and work in Taiwan, and, from 2026, foreign professionals with permanent residence. Other foreign employees pay Labor Insurance and NHI but not Employment Insurance.
Why is no tax withheld from a NT$50,000 salary?
Under the 2026 withholding table, a resident with no dependents has nothing withheld below NT$90,501 a month. That does not mean the salary is tax-free. The employee files an annual return in May of the following year and pays any tax due then.
How are bonuses taxed and insured?
For residents, bonuses paid separately from monthly salary are withheld at 5%, but nothing is withheld if a payment is below NT$90,501 (2026). Bonuses that add up during the year to more than four times the employee’s NHI insured salary also carry a supplementary NHI premium of 2.11% on the excess.
This article is general information based on Taiwan law as of November 2026, not advice on any specific case. Examples are hypothetical.