Labor Code Provisions in Taiwan
Minimum Age
To be eligible for employment in Taiwan, a person must be at least 15 years old. However, minors between the ages of 15 and 16 may only work under specific conditions, such as part-time jobs or during non-school hours.
Minimum Wage Payment
In Taiwan, there is a minimum wage system. As of 2024, the minimum wage is NT$27,470 per month or NT$183 per hour. Employers must ensure that employees are paid at least this amount unless an exemption applies.
Working hours and overtime law in Taiwan
Employees in Taiwan are generally allowed to work 40 hours per week with a maximum of 8 hours per day. Overtime is permitted, but employers must compensate employees at a rate of at least 1.33 times their regular hourly rate.
Key regulations include:- Employees must have one day off per week
- Overtime should not exceed 46 hours per month
- Employees cannot work more than 12 hours in a single day, including overtime
- Employees working shifts are entitled to appropriate rest periods
Paid Annual Leave
In Taiwan, employees are entitled to paid annual leave based on their years of service. The more years they work, the more leave they are entitled to:
1 additional day
per year, up to
a maximum of
30 days
Taiwan Sick Leave Rules
Employees in Taiwan are entitled to 30 days of paid sick leave per year for non-hospitalization cases and one year of leave with half pay for serious illnesses requiring hospitalization. The exact amount depends on the employee's years of service and health status. Employees are required to provide a medical certificate after three consecutive days of leave.
Public Holidays
According to Taiwan’s labor laws, employees are entitled to 12 national public holidays per year. If a public holiday falls on a rest day, the following day is treated as a paid holiday.
Health Insurance
In Taiwan, employers are required to enroll their employees in the National Health Insurance (NHI) system, which provides universal healthcare coverage. Employers and employees share the cost of the premiums, with the employee typically contributing 30% and the employer contributing 60%. Foreign employees on long-term contracts are also required to be enrolled in the NHI after staying in Taiwan for six months.
Taiwan's Parental Leave
Female employees in Taiwan are entitled to 8 weeks of paid maternity leave. During this period, employers are required to pay employees full wages. Fathers are entitled to 5 days of paid paternity leave. In addition, employees can apply for unpaid parental leave for up to 2 years if they have worked for the company for more than 6 months.
Taiwan Law on Probation Period
While Taiwan’s Labor Standards Act (LSA) doesn’t explicitly regulate probation periods, it is common practice for employers to ask employees to serve a probation period ranging from three to six months. During this time, both parties can assess suitability for the position, and the employer may offer a shorter notice period for termination during the probation period. However, employees under probation are still entitled to protections under the LSA, such as paid leave and labor insurance.
Taiwan Employment Law on Termination
Termination of employment in Taiwan must follow the regulations outlined in the LSA. Employers can terminate contracts under the following conditions:
- Employee misconduct or failure to meet job responsibilities
- Redundancy due to business restructuring
- The employee voluntarily resigns or is unable to perform the job due to illness or injury
Notice Period:
Employers are required to provide a notice period of:- 10 days for employees with more than 3 months of service
- 30 days for employees with more than 1 year of service
Layoffs, Retrenchment or Downsizing
If employers need to lay off employees due to business reasons, they must provide severance pay based on the employee's years of service:- 0.5 months' pay for every year of service under the old pension scheme
- Severance pay is also required for employees under the newer pension scheme if agreed upon in the contract
Taiwan’s Labor Insurance and Retirement Contributions
The following are the regulatory requirements and common practices for Taiwan's Labor Insurance and Labor Pension plans:- Employers in Taiwan must enroll employees in Labor Insurance, covering work-related injuries, medical care, and pensions. The contribution is shared by the employer, the employee, and the government, with the employer covering around 70% of the premium
- Labor Pension is a mandatory contribution plan for Taiwanese citizens and foreign employees with Alien Permanent Resident Certificates (APRC). Employers are required to contribute at least 6% of the employee’s monthly wage into an individual pension account
- Foreign employees without permanent residency aren’t required to participate in the Labor Pension Scheme, but employers may still choose to offer a private pension plan or other savings benefits
- Contributions for both Labor Insurance and Labor Pension must be made by the end of the following month to avoid penalties for late payments
- On the 14th of the next month, employers must submit the monthly payment for both employers and employees
Non Statutory Benefits or Perks
In Taiwan, companies often provide non-statutory benefits at their discretion to attract and retain talent. Some of the most common perks include:
- Supplementary Health Insurance – Many companies offer additional health insurance to cover medical expenses not included in the national health system, such as dental or vision care
- Per Diem for travel-related jobs – A daily allowance to cover meals, lodging, and transportation for employees traveling for business
- Relocation Package – For expatriates or employees relocating within Taiwan, companies may provide coverage for moving expenses, housing, and family-related costs such as childcare and education fees
- Employee Stock Purchase Plans (ESPP) – Some companies, especially in the tech sector, offer employees the chance to buy company shares at a discounted rate, incentivizing long-term commitment
- Corporate memberships for gym access, clubs, or professional associations
- Continuing education programs – Financial support for employees to attend courses, workshops, or certifications that help advance their skills
- Leisure activity coupons – Discounts or subsidies for activities like movie tickets, travel, or cultural experiences
- Gym memberships – Many companies partner with local gyms to offer discounted or free memberships as part of their wellness initiatives
- Telecom plans – Discounts or fully subsidized mobile plans, especially for employees who need to be connected for work
Penalties
Non-compliance with the Labor Standards Act in Taiwan can result in severe penalties. If a company violates any of the provisions under the LSA, they could face:- Fines of up to NT$1 million (approximately SGD 42,000), depending on the severity of the violation
- In cases of repeated or intentional violations, employers or managers could face imprisonment of up to one year or fines of up to NT$3 million (approximately SGD 126,000)
- For wrongful termination of an employment contract, employers may be required to pay compensation equivalent to the wages for the notice period
Additionally, employers are required to provide two weeks' notice during the probation period and one month’s notice once the employee’s probation period is completed. 
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