Employer of Record in Taiwan

At the heart of Asia, Taiwan stands out as a pillar of economic dynamism, with a GDP of 761.69 billion US dollars in 2022, representing a steady growth of 2.35% compared to the previous year. The island has experienced a significant increase in foreign direct investments, reaching 13.30 billion US dollars in 2022, an impressive year-on-year growth of 77.94%. As Taiwan unveils its professional landscape, many companies are interested in business development in this area. In this context, opting for the practical solution of wage portage in Taiwan becomes essential to simplify the growth journey of businesses.

Explore this page to discover how we streamline wage portage services in Taiwan. Our goal is to empower you to focus on your business, ensuring a successful entry into the dynamic economy of East Asia.

Employer of Record in Taiwan: What does it mean?

Wage portage or Employer of Record (EOR) services in Taiwan act as a crucial intermediary in employer-employee relationships. Salveo positions itself as a leading player in the Employer of Record (EOR) field, taking on complex responsibilities related to legal and regulatory compliance, including immigration, employment, and payroll.

As the legal employer, Salveo does not oversee the daily work. The original employer retains complete control over the substantive aspects of employment, determining compensation, job specifics, professional development, and contract termination.

Choosing EOR in Taiwan: What are the benefits?

There are two main advantages:

Optimizing efficiency by entrusting administrative and regulatory tasks to our competent team, allowing full focus on essential business operations.
Gaining strategic advantages by quickly establishing a cost-effective local presence, skillfully bypassing local legal complexities that often require extended market testing periods, sometimes up to six months.

What is our added value in the heart of this process?

As an employer of record, we offer a comprehensive range of services to address the challenges of the human resources landscape in South Korea. As a subsidiary of the ADIT Group, an HR services company with over 750 employees and a strong revenue of 156 million euros, Salveo continues a legacy of excellence.

Among our offerings:

Expertise in drafting employment contracts compliant with Taiwanese labor laws
Competence in obtaining work and residence permits for foreign employees
Meticulous payroll processing and issuance of pay slips
Rigorous oversight of social security and tax administration
Streamlined management of paid leave and professional expense reimbursements
Expertise in end-of-contract scenarios, including non-renewals or terminations
Close collaboration with client companies on all matters related to labor laws and employment contracts

In addition to essential services, we open up possibilities for optional services such as recruitment, providing office space in their business centers, and comprehensive international mobility management services, including apartment search, school placement, and car rental.

Our offerings act as a catalyst for companies looking to reduce HR expenses, strengthen compliance, free up time and resources for essential business activities, and attract and retain top talent.

The key points to maintain compliance with labor laws in Taiwan

Types of employment contracts in Taiwan

There are two main types of labor contracts available in Taiwan: fixed-term and non-fixed-term contracts.

Regardless of the type of contract, all labor contracts in Taiwan must be in writing and must include the following information:

The names and addresses of the employer and employee
The date the contract was signed
The type of work
The wages
The working hours
The recess
The holidays
The severance pay
The retirement benefits

Common Probation Period Practice in Taiwan

In Taiwan, there is no standard probation period for employees. The employer and employee can negotiate the length of the probation period, but it is typically three months. During the probation period, either party can terminate the employment contract without notice.

However, after the probation period ends, the employer must provide a reason for terminating the contract, and the employee must be given notice.

Working hours and overtime in Taiwan

In Taiwan, the standard working hours typically comprising each day an average of 8 hours, amounting to a weekly limit of 40 hours. Employees working above the standard work hours are entitled to overtime financial compensation. The overtime pay rate increases the more overtime hours are worked. Here is a breakdown of the overtime pay rates in Taiwan:

Working Days	Overtime compensation
First two hours of overtime	134% of the usual salary rate
Over two to four hours of overtime	167% of the usual salary rate
Over four to eight hours of overtime	200% of the usual salary rate
Over eight hours of overtime	233% of the usual salary rate
Overtime on rest days	267% of the usual salary rate

Annual paid leave

In Taiwan, all employees are eligible for paid annual leave, and the duration of this leave is based on the years of service of the employee within a company.

The following table outlines the progressive entitlement to paid annual leave based on the duration of service with the company:

Years of seniority	Number of paid leave
6 months ≤ X < 1 year	3 days
1 year ≤ X < 2 years	7 days
2 year ≤ X < 3 years	10 days
3 year ≤ X < 5 years	14 days
5 year ≤ X < 10 years	15 days
X ≥ 10 years*	15 days + extra day per year of service

*According to the Taiwanese labor law, the paid leave for employees with a seniority of 10 or more years is limited to 30 days of vacation leave. However, the duration can be negotiated with the employer within the labor contract.

National Holidays

The following table indicates the Taiwanese public holidays and their dates for 2024.

Holiday	Date
Republic Day/New Year’s Day	From 1st to 2nd January
Lunar New Year Holiday	From 21st to 29th January
Peace Memorial Day Holiday	From 25th to 28th February
Public Holiday	From 1st to 3rd April
Children’s Day	4 April
Tomb Sweeping Day	5 April
Dragon Boat Festival	From 22nd to 25th June
Mid-Autumn Festival	From 29th Sep to 1st October
National Day Holiday	From 7th to 10th October

Minimum wage

The minimum wage in Taiwan is currently NT$26,400 per month, or approximately US$855. The minimum wage is reviewed and adjusted annually by the Ministry of Labor based on factors such as economic growth, inflation, and labor market conditions. Employers are not allowed to pay their employees less than the minimum wage, and any attempt to do so is considered a violation of the Labor Standards Act.

Employment contract Termination by the employer

Employers in Taiwan can terminate a labor contract under the following circumstances:

For just cause: The employer must have a valid reason for terminating the contract, such as poor performance, misconduct, or violation of company policy.
For economic reasons: The employer can terminate the contract due to economic reasons, such as downsizing or business closure.
For expiration of the contract: If the contract is for a fixed term, it will automatically terminate at the end of the term.

The notice period duration for terminating a labor contract in Taiwan depends on the length of the employee’s service. Here’s a breakdown of the notice periods:

Less than 6 months of service: No notice required
6 months to 1 year of service: 10 days’ notice
1 year to 3 years of service: 20 days’ notice
3 years or more of service: 30 days’ notice

For fixed-term contracts with a duration of over 3 years, the employee can terminate the contract by giving the employer an advance notice 30 days before their severance.

In general, employees in Taiwan are entitled to severance pay if their contract is terminated by the employer without just cause. Severance pay is also payable if the employee’s contract expires and they are not offered a renewal. The severance amount extends to 1 month’s salary per year of employment with a maximum of 6 months in total.

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