Taiwan is located in eastern Asia, and the official language is Mandarin, although a large portion of the population speaks Hoklo. Economically, Taiwan is considered one of the four “Asian Tigers,” along with Hong Kong, South Korea and Singapore. The Taiwanese economy boasts an impressive diversity of successful and booming sectors, notably the information technology and communications industries. Taiwan maintains a strong trade relationship with mainland China, making it an excellent destination for expansion into Asia.
Employment contracts in Taiwan can be verbal or written, but most are in writing. They can be in the local language or in English, provided that both the employer and employee are comfortable with and understand the language. Employment contracts should include:
The standard workweek in Taiwan is 40 hours a week over five days. Overtime is limited to eight hours a week. Employees are entitled to extra pay for working overtime. The amount of overtime pay depends on the number of overtime hours worked but starts at at 133% of the basic rate.
Employees receive 30 days of sick leave per year. In the event of hospitalization, employees receive up to a year of unpaid leave. The total amount of sick leave cannot exceed one year within two consecutive years.
Female employees receive eight weeks of maternity leave, which can be extended for up to four weeks due to a pregnancy-related illness.
Bonuses are common with a 13th and 14th month of salary offered, but this is not required. Employers may also distribute a portion of net profits to employees. Terms and conditions related to any such policy must be documented. Employers may offer additional benefits, including meal allowances.
Employees in Taiwan are entitled to annual leave. The amount of annual leave depends on an employee’s length of service, as follows:
The following public holidays are observed in Taiwan:
Taiwan has a single-payer universal healthcare system administered by the government.
An employment contract may be terminated at the end of the contract period (if for a fixed period), by the employer or by the employee. Employers generally must provide employees with advance notice of termination. The notice period is between 10 and 30 days depending on the employee’s length of service. In a limited number of circumstances, no notice is required.Severance is 50% of the average monthly wage for each year of service up to six months.
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
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