The 2026 Taiwan employment guide requires employers to apply a monthly minimum wage of NT$29,500 and an hourly minimum wage of NT$196 from January 1. Taiwan employment compliance also requires accurate labor and employment insurance grades, National Health Insurance (NHI), an employer labor-pension contribution of at least 6%, statutory leave, overtime calculations and valid work authorization for foreign employees.

For companies hiring employees in Taiwan, these requirements affect employment contracts, Taiwan payroll, total employment cost, workforce scheduling and termination liability. This guide gives HR, legal, finance and overseas expansion teams a practical framework for hiring local and foreign employees. Rates and entitlements must still be checked against the employee’s coverage, insured-salary bracket, length of service, work-permit category and actual working arrangement.

1. 2026 Taiwan Employment Compliance at a Glance

Taiwan payroll should not combine labor insurance, employment insurance, occupational accident insurance, NHI and labor pension into one percentage. They have different contribution bases, allocation rules, ceilings and employee-coverage requirements.

2. Employment Changes Employers Must Implement in 2026

The minimum wage increased on January 1, 2026. The monthly rate rose from NT$28,590 to NT$29,500, an increase of NT$910 or 3.18%. The hourly rate rose from NT$190 to NT$196. Employers must update basic salaries, hourly payroll, overtime calculations and salary-linked benefits.

Insurance salary and pension contribution grades changed. The first full-time monthly grade for labor and employment insurance, occupational accident insurance and labor pension contribution wages was adjusted to NT$29,500. The Bureau of Labor Insurance proactively adjusted specified records, but employers remain responsible for reviewing employee lists and reporting the correct actual remuneration.

Labor-insurance maternity support increased. From January 1, 2026, eligible insured female workers covered by the announced program may receive labor-insurance maternity benefits plus a government-funded childbirth subsidy totaling NT$100,000 per child. This employee benefit is separate from the employer’s duty to provide statutory maternity leave and applicable wages.

3. Employment Laws and Regulatory Authorities

The Labor Standards Act governs minimum employment conditions for covered workers. Other important laws include the Minimum Wage Act, Labor Pension Act, Labor Insurance Act, Employment Insurance Act, Labor Occupational Accident Insurance and Protection Act, National Health Insurance Act, Employment Service Act, Act of Gender Equality in Employment and Personal Data Protection Act.

The Ministry of Labor administers labor policy, while the Bureau of Labor Insurance manages labor insurance, employment insurance, occupational accident insurance and labor pension accounts. The National Health Insurance Administration manages NHI. The Workforce Development Agency administers many foreign-work permit processes.

The Labor Standards Act distinguishes employees from company appointees and genuine independent service providers. A senior title does not automatically remove employee status; actual authority, control, duties and remuneration must be reviewed.

Collective agreements, sector rules, approved flexible working-time systems and local government enforcement may add obligations beyond the general framework in this guide.

4. Recruitment, Offers and Onboarding

Before issuing an offer, confirm the role, work location, salary, wage components, normal schedule, overtime eligibility, probation, leave, bonus terms, notice, intellectual property and whether work authorization is required.

The contract submitted for a foreign professional work-permit application commonly needs to state the employee’s name, nationality, role or work description, employment period and remuneration, and must be executed by both parties.

5. Employment Contracts, Contract Types and Probation

Taiwan permits indefinite and fixed-term labor contracts, but fixed terms are restricted to temporary, short-term, seasonal or specific work recognized by law. Continuing work that is not genuinely temporary should generally use an indefinite-term contract.

A written contract should state duties, workplace, wages, payment date, normal hours, overtime approval, rest days, holidays, leave, probation, bonus conditions, confidentiality, intellectual property and termination procedures.

Probation is commonly agreed but is not a statutory exemption from the Labor Standards Act. The employer must still have a lawful ground to terminate and must provide applicable notice and severance. An excessively long or unreasonable probation period may be challenged.

Work rules are generally required for employers with 30 or more workers. They should cover working hours, leave, wages, disciplinary measures, occupational safety, termination, severance, retirement and employee-employer communication, and should be submitted to the competent authority as required.

6. Wages, Minimum Wage and Gross-to-Net Payroll

From January 1, 2026:

The monthly minimum applies to a monthly paid worker performing services within the statutory normal-hours ceiling. Minimum wage covers remuneration for normal working hours and does not include overtime premiums or additional pay for work on rest days and holidays.

For an employee previously paid NT$28,590 per month, the minimum adjustment is:

NT$29,500 − NT$28,590 = NT$910 per month

A simplified gross-to-net calculation is:

Gross wages + overtime and other earned payments − employee insurance and NHI shares − income-tax withholding − other lawful deductions = net pay

Employers must withhold and report individual income tax under the employee’s residence and payment circumstances. Bonuses, allowances, stock-based compensation and benefits should be mapped separately for wage, insurance, pension and tax treatment.

Wage records and payslips should clearly show the wage period, agreed wages, overtime, leave deductions, insurance, pension-related information and other adjustments.

7. Working Hours, Overtime, Rest Days and Records

Normal working time is generally limited to eight hours per day and 40 hours per week. Employers must provide a 30-minute break after four continuous hours of work, subject to statutory exceptions for particular work arrangements.

Overtime generally requires the employee’s consent and applicable internal or labor-management procedures. Total working hours normally must not exceed 12 hours in one day. Overtime is generally capped at 46 hours per month, although approved flexible arrangements may permit a higher monthly limit subject to a three-month aggregate cap.

For a monthly paid employee, the common hourly base is monthly wages divided by 240. Overtime on a normal workday is generally paid at:

Work on rest days, regular leave days or statutory holidays follows separate rules. Employers should not apply the normal-workday table mechanically to every situation.

Attendance records must generally be kept to the minute and retained for five years. Remote and mobile employees should be included in reliable time-recording and overtime-approval processes.

8. Public Holidays, Annual Leave and Other Leave

The 2026 calendar reflects the expanded holiday framework adopted in 2025. The following table lists the principal statutory holidays and observed days relevant to private-sector scheduling:

Private employers must apply Labor Standards Act holiday and compensatory-day rules rather than relying only on the government-office calendar. Shift workers may take holidays on different dates through lawful arrangements.

Statutory paid annual leave increases with service:

Statutory maternity leave is eight weeks. A worker employed for more than six months generally receives regular wages; a worker with shorter service generally receives half wages. Other statutory rights include pregnancy check-up leave, paternity and pregnancy check-up accompaniment leave, menstrual leave, family-care leave and parental leave without pay, subject to applicable conditions.

9. Labor Insurance, NHI, Labor Pension and Tax

Employer payroll cost should be separated by program:

The 2026 minimum insurance salary and labor-pension contribution wage for affected full-time employees is NT$29,500. Employers must report actual monthly remuneration using the applicable grade rather than simply enrolling every worker at the minimum.

NHI employer calculations may include the announced average number of dependants, currently 0.56 for the relevant formula, while employee liability is capped at a maximum of three dependants. Supplementary NHI premiums may apply to specified payments.

Foreign-worker coverage differs by residence, nationality, professional status and insurance program. Employers should not assume that every foreign national has the same labor-insurance, employment-insurance or pension treatment.

10. Local and Foreign Employees

Local employees can generally work without an employment permit. Most foreign nationals require a valid work permit unless a statutory exemption applies. A visitor visa, residence document or signed contract alone does not necessarily authorize employment.

Foreign professionals may qualify under specialized or technical work, management, teaching, sports, arts and other approved categories. Taiwan also operates the Employment Gold Card and special rules for foreign professionals, foreign special professionals and graduates of designated universities.

The employer and worker must follow the role, employer and duration stated in the permit. When a foreign professional changes employers, the new employer generally submits a new permit application and supporting termination documentation.

An employer of record (EOR) arrangement does not automatically create work-permit eligibility. The legal employing entity, permitted occupation, candidate qualifications, salary threshold, insurance, pension and tax position must be confirmed before onboarding.

11. Remote Work, Data Privacy and Record Keeping

Remote work does not remove Taiwan employment obligations. The employer should define approved locations, working hours, overtime approval, equipment, expenses, occupational safety, data access and relocation procedures.

Under the Personal Data Protection Act, employee data should be collected for a specific lawful purpose, limited to what is necessary, protected from unauthorized access and retained under a documented schedule. Cross-border transfers require transparency and appropriate safeguards.

Employers should retain contracts, identity and work-permit documents, attendance records, wage statements, overtime approvals, leave, labor-management meeting records, insurance, NHI, pension, tax and termination documentation.

An employee working from another jurisdiction may create foreign payroll, tax, social-security, immigration and permanent-establishment exposure. Location changes should therefore require written approval rather than informal manager consent.

12. Termination, Severance and Final Settlement

An employer may terminate only on a ground permitted by the Labor Standards Act or another applicable statute. Common business grounds include suspension of operations, operating losses, business contraction, force majeure and a worker’s confirmed inability to perform assigned work. Serious misconduct grounds follow separate rules.

For qualifying employer-initiated termination, statutory advance notice generally depends on service:

Under the new labor-pension system, severance is generally half a month of average wages for each full year of service, calculated proportionally for a partial year and capped at six months of average wages:

Average monthly wage × 0.5 × reckonable years of service

Employees with service governed by the old system may have a different formula: generally one month of average wages for each year of service, with partial periods calculated under the applicable rules. Mixed-service cases require separate calculations.

Unused annual leave must be paid out on termination. Final settlement should also address outstanding wages, overtime, notice pay, severance, bonuses or commission, tax withholding, insurance withdrawal, pension reporting, work-permit termination and return of property.

Mass layoffs trigger separate notification, planning and consultation obligations. Protected situations—including occupational injury, maternity and the exercise of statutory rights—require additional review before termination.

13. Choosing an Employment Model: Entity, EOR or Payroll Outsourcing

EOR is a compliant employment model, not a method for bypassing labor, insurance, tax or immigration law. The client business still needs to manage instructions, performance, working time, bonuses, data access and termination decisions within an agreed governance framework.

If the company already has a Taiwan entity, payroll outsourcing or shared HR support may be more appropriate. Providers should be assessed on local legal capacity, payroll controls, insurance and pension administration, data protection, work permits and termination procedures.

14. Common Taiwan Employment Compliance Risks

1. Using the 2025 minimum wage after January 1. Salaries below NT$29,500 and hourly pay below NT$196 create immediate wage-compliance risk.
2. Combining all statutory costs into one rate. Labor insurance, employment insurance, occupational accident insurance, NHI and labor pension have different bases and allocation rules.
3. Reporting every employee at the minimum insured-salary grade. Employers must report actual remuneration under the correct bracket and review changes when wages increase.
4. Applying normal-workday overtime rates to rest-day work. Overtime calculations vary by day type, number of hours and underlying arrangement.
5. Using the government-office calendar without checking private-sector rules. Private employers must implement Labor Standards Act holiday, observed-day and shift-work requirements.
6. Treating probation as unrestricted dismissal. Probationary employees retain statutory termination, notice and severance rights.
7. Allowing foreign employees to start before permit approval. Residence or visitor status does not automatically authorize the proposed work.
8. Misclassifying a worker as an independent contractor. Control, integration and economic dependence may create retrospective wage, insurance, pension and tax liabilities.