Employer of Record in Taiwan (Hiring and Payroll Guide)
An Employer of Record (EOR) can employ a worker in Taiwan and administer local payroll and benefits. If the provider employs the worker and your company directs their day-to-day work, Taiwan’s labor dispatch rules may apply. They can change who interviews the candidate and when, so settle the hiring route before committing to an offer or start date. Labor Standards Act.
Employment in Taiwan at a glance
National baseline for private-sector employment covered by Taiwan’s Labor Standards Act.
| Label | Value | Detail | Source |
|---|---|---|---|
| Payroll currency and pay cycle | TWD, often monthly by agreement | Pay in New Taiwan dollars. The statutory default is at least twice a month unless the parties agree otherwise or wages are paid monthly in advance. Ministry guidance sets a monthly minimum for regular pay by agreement. | Wage rules, Payday guidance |
| Normal working hours | 8 hours/day, 40 hours/week | National baseline. Designated industries and approved job categories can use different schedules under specified procedures. | Working-time rules |
| Paid annual leave | 3 working days at 6 months | Based on continuous service with the same employer. The entitlement rises to 7 working days at one year. | Annual leave rules |
| Paid public holidays | 16 statutory days | Includes Labor Day on 1 May. A holiday that falls on the employee’s scheduled rest day or regular day off calls for a substitute day. | Holiday guidance |
| Minimum wage | TWD 29,500/month or TWD 196/hour | From 1 January 2026 for full-time monthly pay or hourly-rated work, respectively. From 1 January 2027, the rates rise to TWD 30,900/month and TWD 205/hour. | 2026 wage floor, 2027 wage change, Effective date |
| Individual income tax year | 1 January to 31 December | Tax residency affects wage withholding. A cross-border start can change the treatment in the first year. | Tax bureau guidance |
| EOR hiring route | Labor dispatch rules may apply | Where the client directs a worker employed by the provider, check the interview and contract sequence before selecting a candidate. | Dispatch rules |
EOR and hiring options
Taiwan defines labor dispatch by who directs and supervises the work. In a dispatch arrangement, the local provider employs the worker on an open-ended contract, pays wages and handles enrollment. The client directs the assignment. A court can still find that the client is the employer if the facts of supervision, pay and integration into the client’s organization point to it. The client and provider share statutory compensation liability for an occupational accident while the worker is working for the client. The client may also have to cover unpaid wages if the statutory conditions are met. The labor ministry also calls for fair treatment in access to workplace benefits. Labor Standards Act, Dispatch guidance, Local hiring analysis.
Decide who can interview the candidate
- You’re still defining the role. Give the dispatch provider the skills and duties you need. If the arrangement is dispatch, the provider and worker must sign their employment contract before your company interviews or designates that worker. Article 17-1.
- You’ve already interviewed or picked someone. Have the proposed structure and recruitment history reviewed before proceeding with dispatch. If the client breaks the interview or selection rule and accepts the worker’s services, the worker has 90 days from the first day of service to request a direct contract in writing. If the client and worker reach no agreement within ten days of the client receiving the request, a direct contract can take effect by law the following day. Article 17-1.
- The candidate needs a work permit. Confirm that the proposed employer and duties fit a permit route before offering a start date. Taiwan restricts hiring a foreign worker in one employer’s name to work for a third party. A candidate with valid open work rights may clear the permit issue, while the dispatch interview rule still applies where the arrangement is dispatch. Employment Service Act, Gold Card guidance.
Ask for the name of the Taiwan employer and who will select, supervise and employ the worker. If the provider also acts as an employment agency by recruiting or placing staff for others, verify the permit for that activity. Where your company needs to select and employ the person directly, a Taiwan subsidiary or registered branch can put selection and employment with the same entity. A payroll service can then administer pay for employees your entity employs. Review registration and tax exposure separately if the hire will carry on business locally for the foreign company. Employment agency rules, Company Act, Income Tax Act, Global payroll services.
A contractor can suit a genuinely independent project. Taiwan assesses the actual degree of supervision and control when it classifies the relationship. Worker classification.
Employment costs
At TWD 100,000 gross per month, budget about TWD 114,977 per month for salary and the employer contributions shown below, or about TWD 1.380 million annualized at 2026 rates. Add the occupational accident premium and any applicable employer-level charges, benefits and EOR fees.
The example assumes a full-time software engineer working ordinary office hours in Taipei, a Taiwan national on an open-ended contract. The legal employer has at least five employees, and the worker is eligible for all modeled programs. Base salary is TWD 1.2 million over 12 months. The example assumes the statutory minimum pension contribution and excludes bonuses, overtime and exit costs. The modeled amounts apply to a dispatch employer that meets those conditions.
| Budget item | Monthly amount | Basis |
|---|---|---|
| Gross salary | TWD 100,000 | Illustrative agreed salary before employee deductions. |
| Labor and employment insurance | TWD 4,008 | The employer pays 70% of each premium. In 2026 the underlying rates are 11.5% and 1%, respectively, both on the capped insured salary of TWD 45,800 here. BLI premium tables. |
| Labor pension | TWD 6,066 | 6% minimum on the TWD 101,100 pension wage grade. The pension wage schedule tops out at TWD 150,000. Pension law, Pension wage grades. |
| National Health Insurance | TWD 4,892 | Employer share of 60% on the TWD 101,100 health insurance grade, at 5.17%, with the standard 1.56 worker-and-dependents factor. Health premium table, Premium formula. |
| Wage Arrears Payment Fund | About TWD 11 | Illustrative allocation at 0.025% of TWD 45,800. The bureau assesses it on the employer’s total insured salary. Wage fund rules. |
| Occupational accident insurance | Add the employer’s premium | The employer pays the full applicable premium. Here the insured pay is capped at TWD 72,800. Published class rates range from 0.12% to 0.96%, including commuting cover, before any employer-specific adjustment. Accident rate schedule, Insured pay cap. |
| EOR administration | Quote required | Request the service fee separately from salary and payroll charges. |
At this salary, labor and employment insurance have reached their cap. A raise from TWD 100,000 to TWD 105,000 adds TWD 488 a month in pension and regular health insurance on top of the TWD 5,000 raise. Pension wage grades, Health premium table.
A bonus can also increase the employer’s 2.11% supplementary health premium, assessed on any positive gap between total monthly salary paid and the total reported health-insurance salary bases across the employer. For employers covered by the employee welfare fund rules, part of the contribution is based on the legal employer’s revenue. Ask how these employer-level charges appear in the quote. Price optional benefits and one-off costs such as equipment, relocation or permit support separately. Supplementary health premium, Welfare fund scope.
From 1 January 2027, ordinary labor insurance rises to 12%. Employment insurance remains at 1%. Use the new wage and contribution schedules for a 2027 start. BLI rate notice.
Payroll, taxes and payments
Put the pay period and payday in the employment contract. Monthly pay can be agreed, with the wage calculation shown to the employee. By the end of 2026, the labor ministry’s administrative guidance targets payment within five days of period close for employers with at least 100 workers and seven days for smaller employers. Agree the client’s timesheet deadline around the employee payday and the provider’s payroll cutoff. Wage rules, Payday guidance.
The legal employer deducts the employee’s applicable income tax and insurance shares from gross pay and remits them. Resident wage withholding is generally remitted by the tenth of the next month. Nonresident withholding generally has a ten-day window after withholding, with a holiday extension in specified cases. The main insurance bills are generally due by the end of the month after coverage. Pension follows a later billing cycle. For example, January pension contributions are normally due at the end of March. Ask for the provider’s invoice schedule so you can distinguish cash due to the provider from employee pay and statutory remittances. Tax remittance rules, Insurance due dates, Health insurance law, Pension billing.
Contracts and employment terms
Use an open-ended contract for continuing work and for employment by a dispatching entity. Fixed-term direct employment is available for qualifying temporary, short-term, seasonal or specific work. Set out the work location, duties, hours, pay, benefits and any guaranteed bonus in writing. A reasonable probation period can be agreed. Labor protections and service for tenure purposes begin with employment. Labor Standards Act, Contract rules, Probation guidance.
Check the contract, applicable collective agreement and work rules for guaranteed year-end pay. Taiwan’s profit distribution rule is separate. Article 29 calls for a payment to qualifying full-year workers when net profits remain after specified deductions, without setting a fixed extra month of pay. Profit distribution rule.
Working hours, leave and holidays
Hours and overtime. The normal limit is eight hours a day and 40 a week, with a regular day off and a separate rest day in a standard seven-day schedule. The first two hours of ordinary weekday overtime are paid at least one-third above the ordinary hourly wage, with at least a two-thirds premium for the next two. The ordinary overtime limit is 46 hours per month, with approved exceptions. Rest-day work has a separate pay schedule. Some industries can redistribute hours under approved procedures. Special hours arrangements for designated roles require a written agreement and local approval. Hours and overtime rules.
For remote staff, agree how to log required evening calls and other work outside scheduled hours. The employer must keep daily attendance records to the minute for five years. In a dispatch arrangement, get the client’s records to the legal employer in time for payroll. Attendance rules, Remote work guidance.
Annual leave. The statutory schedule gives 3 paid working days at six months, 7 at one year, 10 at two, 14 from three to under five years and 15 from five to under ten. From the tenth anniversary, add a day per year up to 30. Unused entitlement is generally paid at the end of the leave year unless both sides agree to carry it into the next year. Pay any remaining entitlement when employment ends. Annual leave rules, Leave year rules.
Public holidays. Use Taiwan’s holiday calendar and the employee’s actual work pattern to schedule substitute days. Eligible Indigenous workers may also choose three paid days for qualifying traditional ceremonies. If a monthly-paid employee agrees to work on a statutory holiday, add a day’s pay for work of up to eight hours. Holiday calendar, Holiday pay.
Sick and family leave. Ordinary sick leave without hospitalization is generally up to 30 days a year at half pay. From 2026, taking up to ten ordinary sick days in a year is protected against adverse treatment. Maternity leave is eight weeks, with full pay from six months of service and half pay below that. Taiwan also provides seven paid days for accompanying a spouse to pregnancy checkups and for paternity leave combined. After six months of service, employees can apply for unpaid parental leave of up to two years before their child turns three. Up to 30 days of that entitlement can be taken one day at a time. Leave regulations, Maternity pay rules, Parental leave law, 2026 leave changes.
Employee benefits
National Health Insurance and the applicable labor, employment and occupational accident insurance are statutory. The legal employer also contributes to individual pension accounts for covered hires. An ordinary company with fewer than five employees can generally opt into ordinary labor insurance. Employment and occupational accident insurance still apply for eligible employees. Use the headcount of the legal employer, which may employ workers assigned to several clients. Insurance coverage, Health insurance law, Pension law.
From January 2026, qualifying foreign professionals and foreign specialist professionals in professional work are generally covered by the new pension system even without permanent residency. Employment insurance has its own eligibility rules, which now include covered foreign professionals with permanent residence. Put any additional group insurance or enhanced leave in the offer and confirm what the provider can administer. Foreign professional pensions, Employment insurance eligibility.
Onboarding and work authorization
- Before the offer, settle the route. The client provides the role, workplace and recruitment history. The proposed employer confirms the contract sequence and any local agreement or workplace requirements.
- Before work starts, verify work rights. A candidate with local work rights can proceed to payroll and insurance setup. Where a foreign national needs sponsorship, confirm that the employer, duties and assignment fit the permit before work starts. A change of employer or duties can require a new application. Budget time for any separate visa or residency steps. Employment Service Act, Talent Taiwan work permits.
- At the start, set up coverage and pay. The worker supplies identity, bank and work-rights details as applicable. The legal employer files applicable labor, employment and occupational accident insurance on the first day, including during probation. Set up National Health Insurance from the start date for eligible hires. For employees in the new pension system, report the start within seven days. Confirm the first payday and who reports attendance. First-day insurance, Health insurance law, Pension filing.
Termination and final pay
When a client assignment ends, the legal employer handles reassignment or dismissal under Taiwan’s employment rules. It should consider suitable reassignment and establish a statutory ground before dismissing. For dismissals subject to notice, the minimum is 10 days at three months of service, 20 days at one year and 30 days at three years, or pay in lieu for notice not given. Qualifying layoffs also generally require a separate report to local authorities and employment services at least ten days before departure. Misconduct covered by Article 12 can allow dismissal without notice or severance. Dismissal grounds, Notice thresholds, Layoff reporting, Dispatch guidance.
At termination, pay outstanding wages and unused annual leave immediately. For a qualifying termination under the new pension system, severance is half a month’s average wage per year of service, prorated for partial years and capped at six months’ average wage. Pay severance within 30 days. Legacy service can follow a different calculation. Final pay rules, Severance rules.
Hiring with Borderless
Borderless AI offers EOR services in Taiwan, including help with employment contracts, onboarding, payroll and benefits administration. For a Taiwan quote, bring the work location, duties, gross salary and any guaranteed bonus, target start date, work-authorization status and the candidate selection steps you’ve already taken. Use the conversation to confirm the local legal employer, the permitted hiring sequence and the statutory charges alongside the service fee. Borderless EOR services, Book a demo.
