Country Information

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

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:

  • Place of work
  • Salary, payment method (check, bank transfer), payment duration
  • Salary details
  • Working hours
  • Annual leave
  • State the commencement of work
  • Company policies
Working Hours

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.

Sick Leave

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.

Maternity/Paternity Leave

Female employees receive eight weeks of maternity leave, which can be extended for up to four weeks due to a pregnancy-related illness.

Compensation

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.

Vacation Leave

Employees in Taiwan are entitled to annual leave. The amount of annual leave depends on an employee’s length of service, as follows:

  • Three days of leave for employees with six months or more but less than one year of service
  • Seven days of leave for employees with one year or more but under two years of service
  • 10 days of leave for employees with two or more years but less than three years of service
  • 14 days of leave for employees with three or more years but less than five years of service
  • 15 days of paid leave for employees with five or more years but less than 10 years of service
  • One additional day is provided for each year of service over 10 years, up to 30 days
Public Holidays

The following public holidays are observed in Taiwan:

  • New Year’s Day
  • Chinese New Year
  • Heroes’ Day (two days)
  • 228 Peace Memorial Day
  • Children’s Day
  • Tomb-Sweeping Day
  • Labor Day
  • Tuen Ng (Dragon Boat) Festival
  • Mid-Autumn Festival
  • National Day
Health Insurance Benefits

Taiwan has a single-payer universal healthcare system administered by the government.

Employment / Termination / Severance

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.

Local Laws & Regulations

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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Partner with Atlas

Partnering with Atlas when expanding into Taiwan, can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
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