Taiwan Employee Compensation Regulations: A Comprehensive Guide for International Employers

Minimum Wage Requirements

Effective January 1, 2025, Taiwan will implement a new minimum wage structure replacing the previous basic wage system. The monthly minimum wage will be NT$28,590, with an hourly rate of NT$190. This adjustment reflects Taiwan's commitment to maintaining fair compensation standards aligned with economic conditions.

Payroll Frequency and Documentation

Under Taiwan's Labor Standards Act, employers must distribute wages at least twice monthly unless alternative arrangements are mutually agreed upon. Companies must provide detailed pay statements showing all compensation components, including piece-rate calculations. Additionally, employers must maintain payroll records for a minimum of five years, documenting payment details, calculations, and total compensation to ensure transparency and protect worker rights.

Legal Payment Methods

Taiwanese law mandates that wages be paid in legal tender, though certain industries may utilize in-kind payments when specified in employment contracts, provided valuations are fair and reasonable. Common payment methods include:

Cash payments: Direct currency exchange requiring security measures
Bank transfers: Electronic deposits to employee accounts
Check payments: Traditional paper instrument transactions
Digital payments: Growing use of electronic wallets and mobile platforms

Employers must ensure timely payments regardless of method while providing clear documentation. For international companies, SailGlobal offers specialized payroll solutions that streamline compliance with Taiwanese regulations.

Payroll Documentation Requirements

Taiwanese pay slips must contain comprehensive information including:

Employer and employee identification details
Pay period dates and total hours worked
Overtime calculations and holiday pay
Deductions for taxes, social security, and insurance programs
Net compensation after withholdings

Companies may handle payroll internally by establishing local entities or partner with global providers like SailGlobal for compliant, efficient payroll management.

Common Compliance Risks for Employers in Taiwan

Delayed or incomplete wage payments
Improper termination procedures
Violations of working hour regulations
Non-compliant contract terms
Inadequate social security contributions

Bonus Regulations in Taiwan

Taiwan's Labor Standards Act Article 29 requires profitable enterprises to distribute bonuses or dividends to qualifying employees after accounting for taxes, losses, and reserves. Companies typically establish specific bonus criteria in employment contracts or internal policies.

Thirteenth-Month Pay Practices

While not legally mandated, many Taiwanese companies offer thirteenth-month payments as retention incentives. For example, major technology firms often provide this benefit to competitive positions.

Performance-Based Incentives

Employers may establish discretionary bonus programs tied to measurable performance metrics. Key considerations include:

Clear eligibility criteria and evaluation processes
Non-discriminatory distribution practices
Proper tax withholding and reporting
Consistent application across the organization

Taiwan Industry Salary Benchmarks (Annual/TWD)

Industry	National Sales Director	Sales Manager	Sales Representative
Energy Sector	800K-1.5M	500K-1M	300K-700K
Automotive	800K-1.5M	500K-1M	300K-700K
Medical Devices	1M-2M	600K-1.2M	400K-800K
SaaS Industry	1.2M-2.5M	700K-1.5M	400K-1M
Internet Technology	1M-2M	600K-1.2M	400K-800K
Traditional Manufacturing	800K-1.5M	500K-1M	300K-700K

*Market data for reference purposes

Taiwan Compensation Regulations 2025: Minimum Wage, Payroll & Bonus Guide