Thinking about hiring in Taiwan? You’re in the right place. This guide covers everything you need to know, from navigating local labor laws and payroll requirements to understanding cultural work norms and how an Employer of Record (EOR) can streamline the process.

Whether you’re hiring your first team member or building out a full branch, we’ll help you do it with confidence, clarity, and compliance.

How to Hire Employees in Taiwan

Hiring in Taiwan opens the door to a highly educated, tech-savvy workforce with strong English proficiency and a reputation for hard work. But before you dive into job offers and onboarding, it’s important to understand your hiring options.

The route you take, whether setting up a legal entity or partnering with an Employer of Record, shapes everything from how fast you can start hiring to how much compliance risk you’re taking on. Fortunately, Taiwan offers flexible options for global employers looking to build a presence quickly and legally.

Setting Up a Local Entity

Establishing a company or branch in Taiwan allows you to hire directly. This gives you full control over payroll and HR but requires registration, local tax setup, and a long-term commitment to operating in Taiwan.

Working with an Employer of Record (EOR)

An EOR acts as the legal employer on your behalf, handling contracts, payroll, taxes, benefits, and labor law compliance. It’s the fastest way to hire talent in Taiwan without opening a local business.

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Hiring Independent Contractors

Great for short-term or project-based work, this route gives you flexibility, but comes with risk. Misclassifying employees as contractors can trigger fines or retroactive benefit obligations under local labor laws.

Whichever route you choose, getting it right from the beginning will set the tone for a successful and compliant hiring experience in Taiwan.

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Taiwan Employer Of Record vs Legal Entity in Taiwan

The most common alternative to using a Taiwan EOR service, is to set up a legal entity there. But the process can be complicated and time-consuming. 

To register an entity, such as a limited liability company, in Taiwan, you’ll need to complete these steps:

  • Select a name in Chinese and perform a search to ensure it’s available. If it is, reserve it.
  • Submit an application to the Ministry of Economic Affairs (MOEA) for approval for foreign investment. This must include a business plan and financial forecasting and can take two to four weeks to process.
  • Open a preparatory bank account and deposit startup capital for your company and then have this deposit audited by a chartered professional accountant.
  • File for business registration with the Administration of Commerce, MOEA. This takes about two weeks, and then your business will be officially registered. You’ll also receive your GUI (government uniform invoice) number so you can pay VAT.
  • Register for tax payments through a tax interview. You’ll need your company registration, GUI and company seals (chops), and your premises rental agreement to register.
  • Change your preparatory bank account into a full business account.

Once your business is registered, you can commence doing business in Taiwan. However, you’ll need to learn more about labor and tax laws and likely engage HR specialists, accountants, and lawyers to help you maintain compliance going forward. There is also the option of using an outsourced payroll provider in Taiwan to handle salary payments for employees of your entity. 

An effective alternative to entity registration is working with an EOR. A Taiwan EOR will have its own registered entity in Taiwan that is able to hire employees on your behalf. This can happen quickly, with many EORs able to onboard employees in one to seven days. The EOR will then manage your workers’ payroll, benefits, taxes, and other HR concerns over the course of their employment. Taiwan EOR fees may be high if you use their services over a long period of time or for a large number of workers. Therefore, this option is best if you’re planning to hire workers for a shorter period or just to test the waters before you decide to jump into business in Taiwan completely.

If you need only a few short tasks performed by Taiwanese workers, you can hire freelancers/contractors to perform them. However, if you require more stability, reliability, and control over your workers, you must hire them as employees.

Using an Employer of Record in Taiwan

Hiring in Taiwan without the hassle of setting up a local entity? That’s where an Employer of Record (EOR) comes in. An EOR takes on the legal burden so you can focus on growing your team and business, minus the red tape.

Here’s what an EOR handles for you in Taiwan:

  • Drafts and issues compliant employment contracts in Mandarin or bilingual formats
  • Registers employees with local tax and labor authorities
  • Runs monthly payroll in New Taiwan Dollars (TWD)
  • Manages tax withholdings and social insurance contributions
  • Tracks leave, holidays, and working hours per labor laws
  • Administers severance, bonuses, and end-of-employment processes
  • Keeps you up to date with evolving local regulations

Things to Know About Taiwan

Hiring in Taiwan means tapping into a highly skilled, tech-forward workforce in one of Asia’s most stable and business-friendly markets. But there are a few local insights worth knowing before you start signing contracts.

  • Work culture blends precision with politeness. Taiwanese employees value hierarchy, harmony, and efficiency, so expect formal communication, but also a strong sense of teamwork and loyalty.
  • English is growing, but Mandarin still rules. While many professionals speak some English (especially in tech and finance), employment documents, HR communications, and contracts are almost always in Mandarin. Bilingual contracts are strongly recommended.
  • Annual bonuses are more than nice; they’re expected. It’s common to offer a Lunar New Year bonus (often a 13th-month salary), and many companies provide additional festival bonuses for holidays like Mid-Autumn or Dragon Boat Festival.
  • Taiwan favors long-term employment. Short-term gigs or constant turnover aren’t the norm here. Employers who offer job stability, fair benefits, and growth opportunities often retain top talent longer.
  • Innovation is a national mindset. With strong government support for R&D and digital infrastructure, Taiwan is a major player in semiconductors, green tech, and biotech, making it ideal for companies looking to scale in future-focused sectors.

How Much Does a Taiwan Employer of Record Cost?

The cost of using a Taiwan EOR typically includes your employee’s salary, mandatory benefits, and a service fee charged by the provider. Most EORs use one of two pricing models: either a flat monthly fee or a percentage of the employee’s gross salary, usually around 10% to 15%.

For example, if your employee earns NT$70,000/month (roughly $2,300 USD), the EOR might charge an additional NT$7,000 or a flat fee of $400 to $600 USD. This fee covers payroll, tax filings, benefits administration, compliance, and ongoing HR support.

Using an EOR is often more cost-effective than setting up a local entity, especially for small teams or short-term hiring. Always request a detailed quote to understand exactly what’s included in the pricing.

Employment and Labor Laws in Taiwan

Taiwan’s labor laws are designed to create a fair balance between protecting employees and giving employers room to grow. While the system is relatively straightforward, it does have its own rules, expectations, and paperwork, especially around contracts, hours, and benefits. Getting familiar with the basics helps you stay compliant and build trust from day one.

Employment Contracts

All employees in Taiwan must receive a written employment contract outlining job responsibilities, working hours, salary, benefits, and termination terms. It should be signed before the employee’s first day and ideally written in Mandarin to avoid legal ambiguity.

Working Hours and Overtime

The standard workweek is 40 hours, usually eight hours per day over five days. Overtime is allowed but regulated. Employees who work extra hours are entitled to overtime pay ranging from 1.33x to 2x their regular wage, depending on timing and duration.

Probation Periods

Typically 3 months, during which either party can terminate employment with a shorter notice period.

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Minimum Wage

As of January 2026, the monthly minimum wage in Taiwan is NT$29,500, with the hourly rate set at NT$196. Employers must ensure all employees meet or exceed these benchmarks, even part-timers or trainees.

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Rest Days & Public Holidays

Employees are guaranteed at least one rest day per week and a set number of national holidays, usually around 12 per year. If employees work on a holiday, they’re entitled to double pay or a substitute day off.

Social Security Contributions

Taiwan requires contributions to several key systems: labor insurance, national health insurance, employment insurance, and the labor pension fund. Both employer and employee share the cost, and failure to register properly can result in penalties.

Termination Requirements

Terminating an employee requires just cause and proper notice, typically between 3 and 30 days, depending on tenure. Severance pay may apply if the termination is involuntary or related to restructuring. Documentation is essential to stay on the right side of the law.

How an Employer of Record Helps You Hire in Taiwan

Hiring in Taiwan can feel like navigating a maze of contracts, tax codes, and social insurance rules, especially if you’re not fluent in Mandarin or local labor law. That’s where an Employer of Record (EOR) becomes your behind-the-scenes expert, making sure everything runs smoothly from day one.

An EOR acts as the legal employer on your behalf, taking care of all the essentials: drafting locally compliant contracts, enrolling employees in mandatory benefits programs, processing payroll accurately in NT$, and ensuring termination procedures are by the book. No guesswork. No shortcuts.

This is especially helpful if you’re expanding into Taiwan for the first time or want to test the waters without building a full in-country team. Instead of pouring resources into HR infrastructure, you get instant access to local expertise and compliance peace of mind. With an EOR, you stay focused on building a great team, without worrying about the legal fine print.

Payroll Management in Taiwan

Running payroll in Taiwan isn’t just about getting salaries out on time; it’s about making sure every calculation, contribution, and payslip aligns with local law. Between income tax withholdings, labor insurance, health premiums, and retirement fund contributions, there’s a lot going on behind the scenes. And getting it wrong? That could mean penalties, employee dissatisfaction, or both.

Employers are expected to process monthly payroll in New Taiwan Dollars (NT$), provide detailed payslips, and handle deductions for labor insurance, health insurance, and pension contributions through the National Labor Insurance system and Labor Pension Act. Most companies pay employees at the end of each month, and bonuses, like the widely expected Lunar New Year bonus, should also be factored in.

Here’s what payroll management in Taiwan typically includes:

  • Monthly salary disbursement in NT$, usually at month-end
  • Withholding and remitting income tax based on progressive tax rates
  • Employer and employee contributions to labor insurance, health insurance, and the national pension scheme
  • Detailed payslips that break down salary, deductions, and allowances
  • 13th-month or Lunar New Year bonuses, which are customary in many industries

Because payroll is tightly tied to tax compliance and employee trust, many companies partner with an Employer of Record to make sure every cent is handled correctly. It’s one of the easiest ways to stay compliant and keep your team happy.

Employment Taxes in Taiwan

When it comes to employment taxes in Taiwan, things can get technical fast, but they don’t have to be overwhelming. The tax system is structured, well-regulated, and designed to support both workers and employers. That said, if you’re not familiar with the rules, it’s easy to miss a step (or a deadline).

Employers in Taiwan are responsible for withholding and remitting several types of taxes and contributions. This includes individual income tax, labor insurance, health insurance, and pension fund contributions. These deductions don’t just go to the government. They fund Taiwan’s robust social safety net, which covers healthcare, retirement, and unemployment protection.

Here’s a breakdown of the main employment tax components:

  • Income Tax Withholding: Employers must deduct income tax from employee wages based on a progressive scale ranging from 5% to 40%, and submit it to the tax bureau.
  • Labor Insurance Premiums: Both employer and employee contribute. These premiums cover work-related injuries, sickness, and retirement benefits.
  • National Health Insurance (NHI): Mandatory for all employees. Contributions are shared between the employer, employee, and the government.
  • Labor Pension Contributions: Employers must contribute at least 6% of an employee’s monthly salary to an individual retirement account under the Labor Pension Act.

Keeping up with all these moving parts can feel like juggling while blindfolded. That’s why many global companies lean on local experts or partner with an Employer of Record to manage payroll and taxes without breaking a sweat.

How an Employer of Record Makes Payroll Easy in Taiwan

Running payroll in Taiwan comes with layers, such as taxes, social insurance, and government filings. An Employer of Record (EOR) handles all of it, so you don’t have to.

How an EOR Helps
Quick SetupStart paying your team fast without setting up a local entity.
Full Payroll ManagementTaxes, benefits, and payroll reports are fully managed.
One-Stop OversightSimplifies global payroll operations across multiple countries.
Always CompliantKeeps your team aligned with local labor laws and regulations.

With an EOR, payroll stops being a hurdle and starts running like clockwork.

Work Permits & Visas in Taiwan

Taiwan is welcoming to foreign professionals, but that doesn’t mean the paperwork is a breeze. Hiring international talent here involves navigating a structured, approval-based visa system. Knowing which path to take (and which documents to prep) can save you a lot of time and frustration.

Work Permit

Required before applying for a residence visa; the employer must sponsor it and show that the role can’t be easily filled locally.

Employment Gold Card

A flexible option combining a work permit, residence visa, and re-entry permit, available to highly skilled professionals in select industries.

ARC (Alien Resident Certificate)

Issued after a valid work visa is granted, allowing legal stay and employment in Taiwan.

Company Documents

Including your business license, financial statements, and proof of a legitimate job offer.

Partnering with an Employer of Record means they handle the heavy lifting, such as visa sponsorship, government filings, and compliance, so your new hires can start faster, and you can skip the red tape.

Time Off and Leave in Taiwan

Taiwan’s work culture blends strong labor protections with a growing emphasis on work-life balance. While employees are expected to show dedication, they’re also entitled to time off and the rules around leave and workplace policies are clearly defined in labor law.

Mandatory Leave Entitlements

Employees earn paid vacation based on tenure. After one year of service, they’re entitled to at least 7 days, increasing to 15 days after 3 years, and up to 30 days with longer service.

Public Holidays

Taiwan recognizes around 12 national holidays. If employees work on a holiday, they must receive either extra pay or a substitute day off.

Sick Leave

Employees get 30 days of unpaid sick leave per year (with labor insurance coverage), or up to one year if hospitalized though paid sick leave is often offered as a company perk.

Maternity & Paternity Leave

Mothers are entitled to 8 weeks of paid maternity leave, while fathers can take 5 days of paid paternity leave.

Many employers go above and beyond legal minimums to stay competitive, offering flexible schedules, bonuses, wellness perks, and extra time off. Partnering with an Employer of Record ensures these policies are not only attractive but fully compliant with Taiwan’s labor laws.

Terminations and Severance in Taiwan

Ending an employment relationship in Taiwan isn’t overly complicated, but it must be done by the book. Taiwan’s labor laws are designed to protect workers, so both the process and the paperwork matter.

Notice Requirements

Employers must give advance notice before termination – typically 3 to 30 days depending on the employee’s length of service. If not, payment in lieu of notice is required.

Just Cause

Termination must fall under lawful grounds, such as serious misconduct, downsizing, or redundancy. Terminating without cause or due process can lead to legal pushback.

Severance Pay

Employees hired after 2005 (under the Labor Pension Act) are entitled to severance equal to half a month’s average wage for every year of service.

Final Paycheck

All owed wages, unused leave, and severance must be paid within 30 days of termination.

By working with an Employer of Record, you avoid costly missteps. Your EOR partner ensures every exit is handled in full compliance with local regulations, respectfully, legally, and efficiently.

Expand into Taiwan Easily with Remote People’s Employer of Record in Taiwan

Hiring in Taiwan opens the door to a tech-forward, highly educated workforce in one of Asia’s most stable economies. But navigating local employment laws, taxes, benefits, and cultural expectations can slow you down, especially without boots on the ground.

That’s where an Employer of Record makes all the difference.

With a trusted EOR partner, you can hire top talent quickly, stay fully compliant, and skip the hassle of setting up a legal entity. From onboarding and payroll to labor law compliance and employee benefits, everything runs smoothly behind the scenes, so you can focus on what matters most: growing your team and your business.

Taiwan’s talent market is ready. Let your EOR help you tap into it with confidence.