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Taiwan’s official name is the Republic of China. It is located in eastern Asia. 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:

  • place of work,

  • salary, payment method (check, bank transfer) and payment duration,

  • salary details,

  • working hours,

  • annual leave,

  • work commencement date, and

  • company policies.

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 133% of the basic rate.

Employees in Taiwan 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 in Taiwan, which can be extended for up to four weeks due to a pregnancy-related illness. Male employees are entitled to five days of paternity leave.

Bonuses of a 13th and 14th month of salary are common in Taiwan, but 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.

The duration of paid annual leave in Taiwan depends on an employee’s length of service:

  • three days for employees with at least six months but less than one year of service,

  • seven days of leave for employees with at least one year but less than two years of service,

  • 10 days of leave for employees with at least two years but less than three years of service,

  • 14 days of leave for employees with at least three but less than five years of service, and

  • 15 days of leave for employees with at least five but less than 10 years of service.

Employers provide one additional day of paid leave for each year of service over 10 years, up to 30 days.

In Taiwan, the public holidays are:

  • Republic Day/New Year’s Day

  • Chinese New Year's Eve

  • Chinese New Year's Day

  • Peace Memorial Day

  • Children’s Day

  • Tomb Sweeping Day

  • Labor Day

  • Tuen Ng (Dragon Boat) Festival

  • Mid-Autumn Festival

  • National Day

Taiwan has a single-payer universal healthcare system.

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 in Taiwan 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 employee's average monthly wage for each year of service, up to a maximum of six months' pay.

  • 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.

  • Partner with atlas logo

    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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