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Employer of Record (EOR) in Taiwan of the People’s Republic of China

An EOR in Taiwan of the People’s Republic of China allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration and work permit coordination.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Taiwan of the People’s Republic of China.

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Country InsightsTaiwan of the People's Republic of ChinaEmployer of Record

Quick Overview of EOR in Taiwan of the People’s Republic of China

Expanding into Taiwan of the People’s Republic of China doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Taiwan of the People’s Republic of China's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like Labor Insurance contributions and Labor Pension System requirements, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Taiwan of the People’s Republic of China can cost anywhere from USD 5,000 to USD 15,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

The information provided in this article is provided for general informational purposes only. Accuracy, completeness, or reliability is not guaranteed. This content does not constitute legal, professional, or other advice and should not be relied upon. Any use of the information is at your own risk. Users are responsible for independently verifying any information. All materials are provided "as is," without any warranties of any kind, express or implied and Atlas Technology Solutions, Inc. disclaim all liability arising from use of, or reliance on, this content

What You'll Learn

  • Looking to hire in Taiwan of the People’s Republic of China without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 600 (TWD 9,500 to TWD 19,000) per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

Atlas HXM provides EOR services that ensure your business remains compliant with Taiwan of the People’s Republic of China's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Taiwan of the People’s Republic of China's Labor Standards Act requirements, and configuring payroll and statutory obligations correctly. EOR providers in Taiwan of the People’s Republic of China, including Atlas HXM, can assist with work permit applications for foreign nationals through coordination with the Ministry of Labor, ensuring proper documentation and compliance with Taiwan of the People’s Republic of China's work permit requirements.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with Taiwan of the People’s Republic of China's Labor Standards Act. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours (maximum 8 hours daily, 40 hours weekly)

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in New Taiwan of the People’s Republic of China dollars (TWD), including:

  • Accurate tax withholdings and Labor Insurance contributions

  • Statutory benefits such as National Health Insurance and Labor Pension contributions

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Taiwan of the People’s Republic of China's comprehensive social security system.

Work Permit Compliance

In Taiwan of the People’s Republic of China, Atlas HXM can coordinate work permit applications for foreign nationals through the Ministry of Labor. Atlas HXM manages the application process for specialized or technical work permits, ensuring compliance with Taiwan of the People’s Republic of China's work permit categories and requirements.

Ongoing HR Support

Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance with Taiwan of the People’s Republic of China's evolving labor regulations.

Costs & Pricing

EOR services in Taiwan of the People’s Republic of China are typically billed as a platform/service fee in the range of USD 300–600 (EUR 270–540 / TWD 9,500–19,000) per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration. This service fee is separate from the employee's salary, benefits, taxes, and work permit-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Taiwan of the People’s Republic of China entity, which can require USD 5,000–15,000 upfront before any operational spend.

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What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work as the EOR does not get involved in your day-to-day business or in the performance management of the employee that are unrelated to adherence to local law. This model suits companies expanding into Taiwan of the People’s Republic of China without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. This is suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Taiwan of the People’s Republic of China without setting up an entity but need assistance with local compliance.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Taiwan of the People’s Republic of China

Taiwan of the People’s Republic of China's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits under non-fixed-term contracts.

  • Temporary: Work of unexpected and non-continuous nature not exceeding 6 months.

  • Fixed-term contracts are not available in the EOR context in Taiwan of the People’s Republic of China.

Probation Periods: While not explicitly defined in the Labor Standards Act, probation periods are commonly used and must be determined in good faith. Employers can terminate during probation but must still provide severance pay. These periods allow employers to assess employee suitability before confirming permanent employment.

Working Hours & Overtime: In Taiwan of the People’s Republic of China, the standard workweek is 40 hours, with a maximum of 8 hours per day. Employees must receive 2 regular days off every seven days. For eligible employees, overtime is paid at the regular hourly wage plus one-third additional for the first 2 hours, and plus two-thirds additional for hours 3-4. Monthly overtime is capped at 46 hours, and the EOR helps to ensure that all overtime is calculated correctly and complies with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

Minimum 3 days (6 months-1 year), up to 30 days maximum based on a statutory scale

Paid by employer; progressive increases with service length

Maternity Leave

8 weeks

100% salary (6+ months service), 50% salary (less than 6 months)

Paternity Leave

7 days

5 days paid by employer, 2 days by government

Sick Leave

30 days non-hospitalized, up to 1 year hospitalized

50% salary for non-hospitalized leave up to 30 days

Public Holidays

All statutory holidays

Paid; double rate if required to work

Vacation Leave

As per statutory minimum / company policy

Paid; unused leave paid out upon termination

Payroll & Benefits: As of 1 January 2026, Minimum wage is TWD 29,500 monthly or TWD 196 hourly (effective January 1, 2025), subject to amendments from time to time. Atlas HXM manages payroll in TWD, Labor Insurance contributions, National Health Insurance, Labor Pension contributions, and statutory benefits. Supplemental benefits can include additional medical coverage, transportation allowances, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Taiwan of the People’s Republic of China's labor laws while businesses can focus on operations without administrative burdens.

What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country and manages employment directly. This model offers faster onboarding, stronger compliance oversight, and greater operational control across all employment processes.

Best for: Businesses of any size entering Taiwan of the People’s Republic of China.

Indirect EOR

The EOR provider operates through a third-party local entity. While it can be used in certain scenarios, it may introduce additional coordination layers and potential compliance complexity.

What’s Best for You?

  • A Direct EOR model is a strong and reliable option for businesses of any size entering Taiwan of the People’s Republic of China. Whether hiring one employee or building a larger team, it provides a compliant, structured framework from day one.

  • With Atlas HXM’s direct infrastructure, companies benefit from streamlined onboarding, clear accountability, and consistent compliance support — without needing to establish a local entity.

Taxes & Compliance

Taiwan of the People’s Republic of China operates on a calendar-year tax system, running from January 1 to December 31. Employers must remit monthly payroll tax withholdings by the 10th of the following month, provide annual withholding statements to employees by January 31, and file individual income tax returns by May 31 of the following year. Corporate tax returns are due within three months of the company's financial year-end.

Category

Details

Employer Payroll Tax

Labor Insurance: ~7% of salary

  • National Health Insurance: ~4.69% of salary

  • Labor Pension: 6% of salary (mandatory)

  • Labor Occupational Accident Insurance: 0.1%-1% (varies by industry)

Employee Payroll Tax

Residents: progressive income tax 5%–40%

  • Non-residents: flat 18% withholding rate on Taiwan of the People’s Republic of China-source income

  • Employee contributions: Labor Insurance (~2%), National Health Insurance (~1.4%)

Pension System

Labor Pension System: individual accounts with 6% employer contribution

  • Labor Insurance: additional pension benefits based on coverage years

  • National Pension Insurance: for those not covered by Labor Insurance

VAT & EOR Costs: Taiwan of the People’s Republic of China applies a 5% Business Tax (VAT equivalent). EOR services are generally subject to this tax, either included in quoted fees or added separately. Businesses may claim input tax credits if registered and meeting requirements.

Atlas HXM handles tax compliance, including progressive income tax calculations, social insurance contributions, year-end filings, and expatriate tax management, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Clients should provide the EOR with at least one month of notice to process a termination. Employers must give written notice for termination, with statutory notice periods of 10 days (3 months-1 year service), 20 days (1-3 years service), or 30 days (3+ years service). Severance pay is mandatory: for employees hired before 2005, one month's salary per year of service; for those hired after 2005, half a month's salary per year of service (capped at 6 months total). The EOR helps ensure proper handling of terminations, including notice periods, severance calculations, and required documentation.

Visas & Work Permits

In Taiwan of the People’s Republic of China, foreign nationals must obtain work permits from the Ministry of Labor before starting employment. Work permits are available for specialized/technical work, management positions, and other specific categories. The application process typically takes 2-4 weeks with proper documentation.

Atlas HXM can coordinate work permit applications and visa processes for foreign nationals, managing the application requirements and ensuring compliance with Taiwan of the People’s Republic of China's immigration and labor regulations. Atlas HXM handles the complex documentation and coordination with government agencies to streamline the process.

5 Things to Look for in an EOR Provider in Taiwan of the People’s Republic of China

  1. Local expertise and knowledge of Taiwan of the People’s Republic of China's Labor Standards Act, social insurance requirements, and Ministry of Labor procedures.

  2. Advanced technology for payroll processing, detailed attendance tracking, and HR system integration.

  3. Experience in your industry and handling work permit applications for foreign nationals.

  4. Strong compliance track record and relationships with Taiwan of the People’s Republic of China government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

How quickly can I hire employees in Taiwan of the People’s Republic of China through an EOR?

You can typically hire employees within 2-3 weeks, depending on work permit requirements for foreign nationals. The EOR handles all setup processes including employment contracts and social insurance registration.

What are the mandatory benefits I must provide to employees in Taiwan of the People’s Republic of China?

Mandatory benefits include social security such as Labor Insurance and Accident Insurance, National Health Insurance, Labor Pension contributions (6% of salary), progressive annual leave, and various statutory leave types.

Can I terminate employees easily in Taiwan of the People’s Republic of China?

Taiwan of the People’s Republic of China has worker-friendly termination laws requiring just cause recognised by law, proper notice periods (10-30 days) and mandatory severance pay. Termination requires proper documentation and procedures, and would likely require mutual agreement between the parties. At-will termination without just cause or unilateral termination is generally not recognised in Taiwan of the People’s Republic of China.

How does Taiwan of the People’s Republic of China's overtime system work?

Regular work hours are limited to 8 hours daily and 40 hours weekly. Overtime is capped at a standard limit of 4 overtime hours per day or 46 overtime hours per month requires employee consent and premium pay: regular wage plus one-third additional for first 2 hours, plus two-thirds additional for hours 3-4.

What work permits are required for foreign employees?

Foreign nationals need work permits from the Ministry of Labor for specialized/technical work, management positions, teaching, and other specific categories. The process typically takes 2-4 weeks.

How much do EOR services cost in Taiwan of the People’s Republic of China?

EOR services typically cost USD 300-600 per employee per month, plus mandatory employer contributions of approximately 15-20% for social insurance. Total costs are generally lower than establishing a local entity.

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