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Table of Contents
Key Country Facts
Introduction
Taiwan, officially known as the Republic of China (ROC), is an island nation located in East Asia. It is bordered by the East China Sea to the north, the Philippine Sea to the east, and the South China Sea to the south. Taiwan is known for its stunning natural scenery, bustling cities, and rich cultural heritage.
Area
Taiwan has a total area of approximately 36,000 square kilometers (14,000 square miles).
Climate
Taiwan has a subtropical climate, with warm and humid weather throughout most of the year. The island experiences a rainy season from May to September, and typhoons can occur during this time. Winters are mild, with temperatures rarely dropping below 10°C (50°F).
Culture
Taiwan's culture is a unique blend of Chinese, Japanese, and indigenous influences. The island is home to many festivals and cultural celebrations, including the Lunar New Year, the Dragon Boat Festival, and the Lantern Festival. Taiwan is also known for its culinary scene, with dishes such as beef noodle soup, oyster omelets, and stinky tofu.
Religion
The majority of people in Taiwan practice a mixture of Buddhism, Taoism, and Confucianism. Christianity and Islam are also present on the island.
Official Language
The official language of Taiwan is Mandarin Chinese. However, many people also speak Taiwanese Hokkien, Hakka, and indigenous languages. English is also widely spoken, especially in cities and tourist areas.
Payroll Information
Payroll Cycle
Employers in Taiwan are required to pay their employees at least once a month. The exact payroll cycle may be determined by the employer and outlined in the employment contract. In general, employees in Taiwan receive their salary on a monthly basis, with payments made on the 15th or the end of the month.
Employment Law
The Labor Standards Act (LSA) is the primary law that governs employment in Taiwan. This law outlines minimum standards for employment, including working hours, rest periods, and leave entitlements. Employers in Taiwan are also required to contribute to various funds, including labor insurance, national health insurance, and pension funds.
Employment Contract
An employment contract is a legal agreement between an employer and an employee. In Taiwan, employment contracts must be in writing and must outline the terms and conditions of employment, including the employee's job duties, working hours, salary, and entitlements to benefits such as leave, overtime pay, and bonuses. The contract must be signed by both the employer and the employee, and a copy of the contract must be provided to the employee.
Employment contracts in Taiwan can be either fixed-term or indefinite. Fixed-term contracts are used for employees who are employed for a specific period of time, such as for a project or to cover for another employee's absence. Indefinite contracts are used for employees who are employed on an ongoing basis.
In addition, employers in Taiwan are required to provide a probationary period for new employees, which can last up to 3 months for regular employees and up to 6 months for managerial employees. During this period, the employer can terminate the employee's employment without notice or severance pay.
Probation Period / Trial Period
Employers in Taiwan are required to provide a probationary period for new employees, which can last up to three months for regular employees and up to 6 months for managerial employees. During this period, the employer can terminate the employee's employment without notice or severance pay.
Working Hours
Under the Labor Standards Act, the standard working week in Taiwan is 40 hours. Employees who work more than 8 hours per day or 40 hours per week are entitled to overtime pay, which is calculated at a rate of 1.33 times the regular hourly rate. There are also restrictions on the number of overtime hours that an employee can work in a week.
Overtime
Overtime pay is calculated at a rate of 1.33 times the regular hourly rate. In addition to this, employers are required to provide a 24-hour break after an employee has worked for 6 consecutive days. If an employee works on a public holiday, they are entitled to double pay.
Bonus
Employers in Taiwan may provide bonuses to their employees at their discretion. Bonuses can take the form of a fixed amount or a percentage of the employee's salary. There are no legal requirements for the amount or frequency of bonuses, but they are typically paid at the end of the year or on special occasions such as the Lunar New Year.
Termination
Employers in Taiwan may terminate an employee's employment for various reasons, including poor performance, misconduct, or redundancy. If an employee is terminated without cause, the employer must provide notice or severance pay.
Notice Period
The notice period is typically 2 weeks for employees who have worked for less than 3 years, and one month for employees who have worked for 3 years or more. Severance pay is calculated based on the employee's length of service.
Redundancy / Severance Pay
Employers in Taiwan may terminate employees due to redundancy or restructuring. In this case, employers are required to provide notice or severance pay, depending on the employee's length of service. The amount of severance pay is calculated based on the employee's length of service and the reason for termination.
Maternity Leaves
Male employees in Taiwan are entitled to 5 days of paternity leave following the birth of a child. During this time, the employee is entitled to receive their regular salary. Employers may also provide additional paternity leave as a benefit.
Paternity Leaves
In addition to maternity and paternity leave, employees in Taiwan are entitled to parental leave to care for their children. Employees who have worked for an employer for at least 1 year are entitled to take up to 30 days of unpaid parental leave per year, per child. This leave can be taken in blocks of 1 day or more.
Parental Leaves
In addition to maternity and paternity leave, employees in Taiwan are entitled to parental leave to care for their children. Employees who have worked for an employer for at least 1 year are entitled to take up to 30 days of unpaid parental leave per year, per child. This leave can be taken in blocks of one day or more.
Vacation and Annual Leaves
Employees in Taiwan are entitled to annual leave, which is determined based on their length of service. Employees who have worked for less than 1 year are entitled to 3 days of annual leave, while those who have worked for more than 1 year but less than two years are entitled to 7 days. The amount of annual leave increases with the length of service, up to a maximum of 30 days per year.
Sick Leaves
Employees in Taiwan are entitled to sick leave for up to 30 days per year. During this time, the employee is entitled to receive 70% of their regular salary from the labor insurance system. Employers may also provide additional sick leave as a benefit.
Other Leaves
Employers in Taiwan may provide additional leave as a benefit, such as bereavement leave or study leave. The terms and conditions of this leave should be outlined in the employment contract.
Other Benefits
Employers in Taiwan may provide additional benefits to their employees, such as health insurance, life insurance, and retirement plans. Employers are also required to contribute to various funds, including labor insurance, national health insurance, and pension funds.
Holidays
There are several national holidays in Taiwan, including New Year's Day, Chinese New Year, Labor Day, Dragon Boat Festival, Mid-Autumn Festival, and National Day. Employers are required to provide employees with a day off on these holidays, and employees who work on a holiday are entitled to double pay.
Taxation
Employers and employees in Taiwan are subject to various tax and social security obligations. It is important for employers to comply with these obligations to avoid penalties and legal issues. Employers should seek professional advice if they have any questions or concerns about their tax and social security obligations in Taiwan.
Personal Income Tax
In Taiwan, personal income tax is levied on an individual's worldwide income. The tax rates are progressive and range from 5% to 45% for 2023. The tax rates and income brackets are as follows:
- Income up to NT$540,000: 5%
- Income over NT$540,000 up to NT$1,210,000: 12%
- Income over NT$1,210,000 up to NT$2,420,000: 20%
- Income over NT$2,420,000 up to NT$4,530,000: 30%
- Income over NT$4,530,000 up to NT$10,310,000: 40%
- Income over NT$10,310,000: 45%
In addition to the above tax rates, there is also a special tax rate of 18% for certain types of income, such as stock dividends and interest income.
Social Security
In Taiwan, employees and employers are required to make contributions to the National Pension Insurance (NPI) and National Health Insurance (NHI) programs. The contribution rates are as follows:
- NPI: Employees contribute 6% of their monthly salary, while employers contribute 6.5%. The maximum monthly contribution is NT$9,810 for employees and NT$10,591 for employers.
- NHI: Employees contribute 5% of their monthly salary, while employers contribute 4.91%. The maximum monthly contribution is NT$3,954 for employees and NT$3,874 for employers.
In addition to the above programs, employers are also required to contribute to the Labor Insurance program. The contribution rate for this program is based on the employee's salary and age, and ranges from 9.5% to 11% for employers.
Visas and Foreign Workers
The work visa application process in Taiwan can be complex, and it is important for employers and employees to understand the requirements and procedures involved. It is advisable to seek professional assistance to ensure a smooth and successful application process.
General Information
Types of Work Visas:
Resident Visa: This type of visa is for individuals who intend to stay in Taiwan for a period of more than 180 days for work purposes. The Resident Visa is valid for one year and can be extended for another year.
Employment Gold Card: The Employment Gold Card is a special type of work permit for highly skilled professionals. The card allows the holder to work and live in Taiwan for up to three years. The Gold Card is issued by the National Immigration Agency (NIA) and is valid for a period of one to three years.
Visitor Visa: This type of visa is for individuals who intend to stay in Taiwan for a period of less than 180 days for work purposes. The Visitor Visa is valid for 60 or 90 days and can be extended once for an additional 90 days.
Requirements for Work Visas:
- Employment Contract: The applicant must have a job offer from a Taiwanese employer and a valid employment contract.
- Qualifications: The applicant must meet the qualifications for the job and possess the required skills and education.
- Health Certificate: The applicant must provide a health certificate issued by a recognized medical institution.
- Criminal Record: The applicant must provide a criminal record certificate issued by the authorities of their home country.
- Financial Support: The applicant must provide proof of financial support to cover their living expenses in Taiwan.
Application Process:
- The employer applies for a work permit on behalf of the employee with the Ministry of Labor (MOL).
- Once the work permit is approved, the employee can apply for a visa at a Taiwanese embassy or consulate in their home country.
- Upon arrival in Taiwan, the employee must apply for a resident permit at the National Immigration Agency (NIA).
Duration of Work Visas:
- Resident Visa: The Resident Visa is valid for one year and can be extended for another year.
- Employment Gold Card: The Employment Gold Card is valid for a period of one to three years.
- Visitor Visa: The Visitor Visa is valid for 60 or 90 days and can be extended once for an additional 90 days.
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