Global EOR Services in Taiwan
Find, Hire & Pay Employees in Taiwan
Taiwan’s strategic location in East Asia and its reputation as a global innovation hub make it a preferred destination for multinational companies. Its robust infrastructure, free-market economy, and strong intellectual property protection further enhance its attractiveness for foreign investors.
Why Use Global EOR Services in Taiwan?
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to Afghan labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇹🇼Taiwan: A Comprehensive Guide to Employment and Labor Practices
Taiwan is one of Asia’s most dynamic business hubs, known for its advanced technology sector, skilled workforce, and strong trade relationships. Expanding into Taiwan offers significant growth opportunities, but navigating employment laws, tax policies, and corporate registration can be complex. A Global Employer of Record (EOR) service allows companies to hire employees in Taiwan without setting up a legal entity, providing a faster, compliant, and cost-efficient entry into the Taiwanese market.
Key Facts
Population: About 23.5 million people
Capital: Taipei
Official Language: Mandarin Chinese (Traditional)
Currency: New Taiwan Dollar (NTD)
Key Industries: Semiconductors, electronics, IT, manufacturing, biotechnology, and finance
Labor Market: Taiwan has a highly educated workforce, with strong skills in engineering, IT, and business
Employment Laws and Policies in Taiwan
Taiwan’s employment framework is primarily governed by:
Labor Standards Act (LSA) – covers basic terms of employment (hours, leave, termination, severance).
Employment Service Act (ESA) – governs hiring practices, including foreign employees and anti-discrimination.
Labor Pension Act (LPA) – defines employer pension contributions.
Labor Insurance Act (LIA) – covers social security and insurance benefits.
Gender Equality in Employment Act (GEEA) – ensures non-discrimination and equal opportunities.
Occupational Safety and Health Act (OSHA) – workplace safety standards.
Employment Contracts
Contracts may be oral or written, but written contracts are strongly recommended.
Must include: job description, salary, working hours, probation period, leave, termination terms.
Types of contracts:
Indefinite-term contracts (default).
Fixed-term contracts (only for temporary, seasonal, or specific projects).
Probation: Usually 3 months, unless otherwise agreed.
Working Hours
Standard working hours: 8 hours per day, 40 hours per week (5-day workweek).
Overtime:
First 2 hours: 1.33x normal rate.
Additional hours: 1.66x normal rate.
Rest day overtime: 2x normal rate.
Maximum overtime: 46 hours per month.
Leave Entitlements
Annual leave (paid): Based on seniority:
6 months – 3 days
1 year – 7 days
2 years – 10 days
3 years – 14 days
5–9 years – 15 days
10+ years – 15 days + 1 extra day for every additional year (max 30 days).
Sick leave:
Ordinary illness/injury: 30 days paid (at 50% wages), 30 days unpaid.
Hospitalization: Up to 1 year (50% pay up to 6 months, then unpaid).
Maternity leave: 8 weeks, fully paid (by employer).
Paternity leave: 7 days paid.
Parental leave: Up to 2 years unpaid, with government subsidy at 60% of insured salary for up to 6 months.
Public holidays: ~12 national holidays (paid).
Payroll, Tax & Contributions
Personal Income Tax (PIT): Progressive (5%–40%).
Social Security Contributions (Employer / Employee):
Labor Insurance: ~10% (70% employer, 20% employee, 10% government).
Health Insurance: ~6% (employer 60%, employee 30%, gov 10%).
Pension: Employer contributes 6% of salary to employee’s pension fund.
Payroll is typically processed monthly in New Taiwan Dollars (TWD).
Health & Safety
Employers must provide a safe working environment under OSHA.
Mandatory risk assessments and training in high-risk industries.
Employers must report and compensate for occupational accidents.
Labor insurance covers medical, disability, and survivor benefits.
Termination & Severance
Notice period (based on tenure):
3+ months – 10 days
1+ year – 20 days
3+ years – 30 days
Severance pay:
For employees under Labor Standards Act system: 1 month’s average wage per year of service.
For employees under Labor Pension Act (post-2005 system): 0.5 month’s average wage per year of service (capped at 6 months).
Immediate dismissal allowed only for serious misconduct (fraud, violence, breach of duty).
Non-Discrimination & Equality
The Gender Equality in Employment Act (GEEA) prohibits discrimination based on gender, sexual orientation, marital/family status.
ESA prohibits discrimination based on race, religion, political opinion, age, or disability.
Equal pay for equal work is a legal requirement.
Sexual harassment prevention policies are mandatory in workplaces with 30+ employees.
Opening a Legal Entity in Taiwan
Companies looking to establish a long-term presence in Taiwan typically register one of the following entities:
Representative Office – Suitable for market research and liaison activities, but cannot generate revenue.
Branch Office – Allows foreign companies to conduct business and earn income, but is taxed as a foreign entity.
Limited Company (Subsidiary) – A separate legal entity offering full operational control, limited liability, and better access to local opportunities.
While setting up a legal entity in Taiwan can provide long-term advantages, it involves registration with government authorities, tax compliance, local staffing, and ongoing administrative responsibilities, which can be time-consuming and costly.
Timeline: Typically 2-4 weeks, depending on entity type.
Popular Global EOR Providers Supporting Taiwan
(They often partner with in-country firms for local compliance.)
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