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In Taiwan, employment contracts can be either indefinite (permanent) or fixed-term. If the employment exceeds two years under a fixed-term contract, it automatically converts into an indefinite-term contract.
The probation period in Taiwan typically lasts three months. Although there is no maximum probation period specified, any extension beyond this initial period must be mutually agreed upon, with no further extension allowed after the first.
Salaries in Taiwan are disbursed on a monthly basis, usually paid on the 1st of each month, unless otherwise specified in the employment contract.
Employers are obligated to contribute to health insurance, labor insurance, and pension funds in Taiwan. These contributions ensure that employees receive necessary benefits such as medical coverage and retirement support.
The minimum wage in Taiwan is currently set at USD 850 (TWD 27,470), providing a basic salary benchmark for employees across various industries.
Taiwan caps the maximum working hours at 40 per week. Overtime is allowed, with a maximum of 46 hours per month. Employees are entitled to 10 to 15 public holidays per year, depending on the calendar.
The number of annual leave days in Taiwan depends on length of service. Employees with six months of service are entitled to three days, increasing to seven days after one to two years. After ten years, employees receive 15 days, with an additional day for each extra year of service.
Taiwan provides various special leave categories, including maternity, paternity, family care, and menstrual leave. These leaves allow employees to take necessary time off for personal and family-related matters.
Employees in Taiwan are entitled to up to 30 days of paid sick leave, during which they receive 50% of their salary covered by social security. Additionally, employees may take hospitalization leave for up to one year, depending on the severity of their condition.
Employers are required to give written notice when terminating an employment contract, depending on the length of service. For employees who have served less than one year, a 10-day notice period is required. Employees who have been with the company for more than three years are entitled to a 30-day notice period.
In cases of termination, employees are entitled to severance pay, which is calculated as one month's average salary for each year of service. This compensation ensures employees receive financial support during the transition period.
