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Taiwan has mandatory 6% Labour Pension, Labour Insurance, NHI, generous annual leave (7–30 days by tenure), and statutory severance (1 month per year of service). Rippling EOR handles Labour Insurance Bureau, National Taxation Bureau, and Labour Pension filings.
Taiwan is a high-income East Asian economy with global leadership in semiconductors (TSMC), electronics, and ICT. Taipei is the primary business hub. Taiwan has a sophisticated legal system and a highly educated, English-capable workforce. EOR is popular with technology, semiconductor supply chain, and financial services companies hiring Taiwanese talent without a local entity. The Labour Standards Act provides strong employee protections including mandatory Labour Pension and statutory severance.
Setting up a Taiwan Ltd. requires MOEA registration, minimum TWD 500,000 paid-in capital (for most entities), Labour Insurance Bureau registration, and National Taxation Bureau registration. EOR is recommended for 1–10 employees or where the 6% Labour Pension mandatory contribution and statutory severance complexity are barriers. Taiwan's Labour Standards Act broad coverage makes EOR valuable for employers unfamiliar with Taiwanese employment law.
Labour Insurance (LI): ~1.43% effective rate on insured salary. NHI: ~1.41% effective rate. Optional Labour Pension top-up: 0–6%. Income tax withheld monthly by employer. Total employee statutory deductions approximately 3% of gross (excluding income tax).
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Labour Insurance employer share: ~7.7% of insured salary. NHI employer share: ~4.69% of insured salary. Labour Pension (New System): mandatory 6% of full monthly salary deposited to employee's individual account. Total employer statutory on-cost approximately 15–17% of gross salary. Statutory severance (1 month per year of service, max 6 months) is an additional termination liability.
Progressive 5-bracket: 5% (up to TWD 590,000); 12% (TWD 590,001–1,330,000); 20% (TWD 1,330,001–2,660,000); 30% (TWD 2,660,001–4,980,000); 40% (above TWD 4,980,000). Monthly withholding by employer; annual reconciliation by January 31.
Special leave (annual): 3 days (6 months–1 year) to 30 days (15+ years). Maternity: 8 weeks fully paid (employer funded). Paternity: 5 days paid. Sick leave: 30 days paid at 50% salary; additional unpaid sick leave up to 1 year. Public holidays: 12 national days.
Notice: 10–30 days depending on length of service. Statutory severance: 1 month average salary per year (max 6 months) for termination without cause. Payable from Labour Pension IPA if sufficient; employer funds shortfall. Unused special leave must be paid out. Rippling EOR manages all termination requirements.
Foreign nationals require an Alien Resident Certificate (ARC) and work permit. Work permits issued by the Workforce Development Agency (WDA). Processing time: 1–3 weeks. Rippling EOR supports work permit applications through its Taiwanese entity.
Statutory: Labour Insurance (employer ~7.7% of insured salary), NHI (employer ~4.69%), Labour Pension 6%, 3–15+ days special leave (by tenure), 8 weeks maternity paid, 30 days sick leave at 50% pay, 12 public holidays.
Market-standard: Group health insurance top-up (near-universal for tech sector), annual performance bonus, meal allowance, stock options common at tech companies. Taipei is a competitive talent market.
Rippling EOR Taiwan operates through a local Taiwanese entity. Key Taiwan-specific handling: Labour Insurance Bureau registration (LI and NHI), Labour Pension 6% monthly contributions, National Taxation Bureau income tax withholding, special leave accrual tracking, statutory severance calculation and management on termination.
Taiwan's Labour Pension New System (2005) requires employers to contribute 6% of each employee's monthly salary to the employee's individual pension account (IPA) at the Bureau of Labor Insurance. This is a defined contribution system — the account belongs to the employee and is portable between employers. There is no vesting cliff. Rippling EOR remits Labour Pension contributions monthly.
Taiwan's Labor Standards Act mandates severance pay of 1 month's average salary per year of service for employees dismissed without cause. Maximum: 6 months under the New Pension System (post-2005 service). Employees may also be entitled to severance upon voluntary resignation after 15+ years or in specific circumstances. Rippling EOR calculates and manages severance on termination.
Taiwan's Labor Standards Act provides generous special leave (paid annual leave): 3 days (6 months–1 year); 7 days (1–2 years); 10 days (2–3 years); 14 days (3–5 years); 15 days (5–10 years); +1 day/year from year 10 (capped at 30 days). Unused leave can be carried over one year or must be paid out. Rippling EOR tracks special leave accrual and ensures payout of unused leave on termination.
Taiwan's National Health Insurance (NHI) is mandatory for all individuals in Taiwan — citizens, resident aliens, and dependents. Rippling EOR enrolls employees in NHI through the Labour Insurance Bureau. The employer contributes approximately 4.69% of insured salary (60% of the premium). NHI provides comprehensive healthcare coverage at government-set fees.
