Taiwan, often referred to as the Heart of Asia due to its central location in the Asia-Pacific region, is a highly developed, trade-oriented economy that has transitioned from agriculture to advanced manufacturing and services. 

With a nominal GDP of USD 814.44 billion in 2025, Taiwan is recognized as the 21st largest economy globally, supported by a well-educated, skilled workforce and a strong export base.

Taiwan’s GDP per capita is among the top 4 in Asia, only behind Singapore, Japan, and sometimes South Korea, with a nominal GDP per capita estimated at approximately USD 35,000 in 2025. 

The service sector dominates Taiwan’s economy, accounting for approximately two-thirds of its GDP, with significant contributions from finance, logistics, healthcare, and education. The industrial sector, particularly semiconductors, electronics, and precision machinery, plays a crucial role in global supply chains, with world-renowned companies like TSMC leading Taiwan’s presence in international markets.

Businesses looking to expand into Taiwan must understand local labor laws, employment regulations, and tax requirements to hire employees compliantly and establish a stable presence in one of Asia’s most dynamic and competitive economies.

Why Expand Your Business to Taiwan?

Taiwan has a resilient export-driven economy with strong foundations in manufacturing, services, and advanced technology, making it an ideal location for international business expansion.

Semiconductors, electronics, information and communication technology, and precision machinery are key industries. Global giants like TSMC, Foxconn, and Acer anchor Taiwan’s global economic presence across multiple sectors.

Taiwan’s strategic location in East Asia offers easy access to major markets like China, Japan, ASEAN, and the Pacific Rim, supported by world-class infrastructure and efficient logistics networks.

The country consistently ranks high in ease of doing business, with streamlined regulatory processes and a transparent legal system. Taiwan also offers a highly skilled talent pool in fields like engineering, R&D, and high-tech manufacturing, making it attractive for companies seeking long-term growth. Here are the many other advantages of expanding your business to Taiwan.

Strategic Advantages in Taiwan's Market

Taiwan is a strong and globally connected economy with clear advantages for companies in manufacturing, technology, and services. In 2024, around 60.8% of Taiwan’s workforce was employed in the service sector, making it the country’s largest employer.

Key areas include finance, transportation, health, and education. The industrial sector remains vital as well, particularly electronics and semiconductor production. Taiwan is one of the world’s top exporters. In 2023, the country was the largest exporter of integrated circuits, shipping over USD 214 billion worth of chips.

Other top exports include office machine parts (USD 29.8B), broadcasting equipment (USD 27.2B), computers (USD 27.1B), and refined petroleum (USD 10.1B). Taiwan also leads global exports in more niche goods like copper foil and tapioca.

Main export markets include China (USD 101B), the United States (USD 85.6B), Hong Kong (USD 66.1B), Singapore (USD 47B), and Japan (USD 33.1B). These relationships show Taiwan’s role in both regional and global trade.

Economic activity is centered in cities like Taipei, Taichung, and Kaohsiung. Taipei City, the capital, plays a major role in the national economy, especially in finance, trade, and information technology. It’s also where many multinational companies operate regional offices. Taichung is known for precision manufacturing, while Kaohsiung is a leading port and industrial city with growing logistics and shipping industries.

Taiwan supports international business through several trade agreements, including FTAs with Panama, Guatemala, and Honduras, as well as Economic Cooperation Agreements with New Zealand, Singapore, and Paraguay, among others. These agreements help reduce tariffs and improve access to important markets.

The official language is Mandarin Chinese. English proficiency remains low, with less than 10% speaking fluently, and the government has initiatives like “Bilingual 2030” to improve English language standards in the region. This complicates hiring employees in Taiwan for foreign businesses as there is an obvious language barrier.

Compliance with Taiwanese Labor Laws

Hiring employees in Taiwan requires careful compliance with local labor laws, which define working conditions, employee rights, and employer responsibilities. Adhering to these regulations is essential for avoiding legal risks and building a strong employer reputation. Key employment regulations include:

  • While not legally required in all cases, written employment contracts are strongly recommended. These should clearly outline terms, conditions, salary, benefits, job responsibilities, and the type of employment — whether permanent or temporary.
  • As of January 1, 2025, Taiwan’s minimum monthly wage is NT$28,590 (USD 865.45) for full-time employees and NT$190 (USD 5.75) per hour for part-time workers. Employers must meet or exceed these wage thresholds regardless of the role or industry.
  • Taiwan has a 40-hour workweek, with 8 hours of work per day. Overtime must be compensated at a minimum of 1.33 times the hourly rate for the first two hours and 1.66 times thereafter.
  • Employees are entitled to two days off per week, including one mandatory rest day.
  • Female employees are entitled to 8 weeks of paid maternity leave. Those employed for over six months receive full salary, while those employed for less than six months receive 50% pay. An additional 7 days of paid leave is granted for prenatal checkups.
  • Male employees are entitled to 5 days of paid paternity leave. Employers must also grant miscarriage leave ranging from 5 days to 4 weeks, depending on the circumstance.
  • Employers must provide severance pay when termination is due to reasons attributable to the employer. All terminations must be justifiable and documented.
  • Companies with 30 or more employees must register their written work rules with the local labor department. These rules should include employment terms, leave policies, and disciplinary procedures.
  • Flexible work hours may be implemented, if necessary, in accordance with Articles 30-2, 30-3, and 30-1 of the Labor Standards Act.
  • Employers must also provide sick leave based on legal entitlements and keep accurate attendance and wage records.

Complying with Taiwan’s labor laws helps businesses protect employee rights, reduce legal risks, and maintain a responsible employer reputation. Staying informed about current regulations and collective agreements is essential for smooth business operations.

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Step 1: Define Your Hiring Needs

Before hiring in Taiwan, businesses need to outline job roles, contract types, and language requirements. Employment contracts fall under two categories:

  • Indefinite contracts: Long-term roles that offer job security, benefits, and full legal protections.
  • Fixed-term contracts: Temporary roles with a defined end date, often used for project-based work or seasonal employment.

Language considerations are also important in Taiwan. Mandarin Chinese is the official language, and most workplaces conduct business in it.

While English is commonly used in multinational companies, finance, and tech sectors, businesses operating in local markets, government dealings, or customer-facing roles may require fluency in Mandarin Chinese.

Besides language consideration, clearly define skill requirements, technical expertise, and other similar areas. Defining these factors before you hire employees sets your goals right and creates a more organized hiring approach for the best candidate selection.

Step 2: Understand Compliance Requirements

Taiwanese labor laws regulate working hours, wages, social security contributions, and benefits under the Labor Standard Act (LSA). Employers must follow these regulations:

  • Work Hours: A typical work week lasts 40 hours, spread across five days. 
  • Paid Leave: Workers get 3 to 30 days, depending on their length of service, plus 12 public holidays.
  • Parental Leave: Mothers in Taiwan receive eight weeks of paid maternity leave, while fathers are entitled to five days of paid paternity leave.
  • Minimum Wage: Taiwan’s minimum wage in 2026 is set at NT$29,500 (USD 934) per month for full-time employees and NT$196 (USD 6.20) per hour for part-time workers. Employers are required to pay at least the minimum wage regardless of industry or job title.

Step 3: Choose Your Hiring Method

You can hire employees through the following three methods:

Establishing a Legal Entity

Setting up a local business entity in Taiwan requires registration with the Department of Commerce under the Ministry of Economic Affairs (MOEA), obtaining a unified business registration number, and complying with corporate income tax regulations (20%).

This method gives companies full control over hiring, payroll, and day-to-day operations while also making them eligible for local incentives and trade benefits. However, establishing a legal entity can be time-intensive and requires compliance with local corporate laws.

Using an Employer of Record (EOR)

An Employer of Record (EOR) acts as the legal employer on your behalf, managing compliance with Taiwan’s labor laws, payroll processing, tax filings, and employment contracts. This option is ideal for businesses that want to hire quickly without opening a local entity, such as when testing the market or running temporary projects.

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Hiring Independent Contractors

Hiring freelancers or independent contractors offers greater flexibility and lower costs. However, misclassification is a risk if the contractor works fixed hours, performs core business functions, or operates under direct supervision. In such cases, they may be reclassified as an employee under Taiwan’s Labor Standards Act, exposing the business to back pay, benefits, and fines.

To avoid penalties, companies should use legally binding written contracts that clearly define the independent nature of the relationship.

Step 4: Develop a Recruitment Strategy

To hire the best candidates, you need a proactive recruitment strategy. Set clear hiring goals, provide a detailed job description, and choose the right hiring channels. You can find qualified candidates through the following mediums.

  • Job Portals: 104 Job Bank, 1111 Job Bank, Yourator (for startups), and CakeResume are some platforms that are widely used for job postings and recruitment.
  • Recruitment Agencies: Many recruitment firms specialize in finance, technology, healthcare, and engineering talent to find skilled professionals.
  • Networking Events: Industry conferences, career fairs, and professional meetups help connect with qualified candidates — particularly in cities like Taipei, Hsinchu, and Taichung.

Step 5: Conduct Interviews and Assessments

A structured and professional approach to interviews leads to better hiring decisions. Focus on job-specific abilities and pose straightforward questions related to the position. To pick the right person, evaluate technical knowledge through hands-on tests when necessary.

If the job needs foreign language skills, run language tests before hiring. In Taiwan, applicants often inquire about career advancement, job stability, and perks. Companies should be ready to talk about long-term growth chances to draw in and keep top performers.

Step 6: Perform Background Checks

Employers must obtain written consent before conducting background checks. Businesses can verify:

  • Employment history and references
  • Criminal records (if relevant to the job)
  • Financial background for finance-related roles

Working with licensed screening agencies ensures compliance with privacy laws.

Step 7: Draft Employment Contracts

Written contracts are not mandatory in Taiwan, but they can prevent misunderstandings. You should be very careful when drafting employment contracts. Every contract must include:

  • Mandatory employee benefits
  • Salary and payment schedule
  • Contract type (fixed-term or indefinite)
  • Working hours and leave entitlements
  • Job responsibilities and work expectations

Step 8: Register with Authorities and Set Up Payroll

Once you hire an employee, register them with both the Bureau of Labor Insurance (BLI) and the National Health Insurance Administration (NHIA). This is mandatory for compliance. Employers should also register the employment relationship with the local tax office.

  • Social Security Contributions: Employers must contribute to several programs, including Labor Insurance (rate is set at 12.5% of the employee’s monthly salary), Employment Insurance (1%), and National Health Insurance (approximately 5%). 
  • Payroll Tax Withholdings: Employers are responsible for deducting and submitting individual income tax on behalf of employees. Taiwan operates under a progressive tax system.
  • Mandatory Pension Contributions: Employers must contribute 6% of an employee’s monthly wage to the Labor Pension Fund, a mandatory retirement scheme regulated by the Bureau of Labor Insurance.
Complying with Taiwan’s payroll and tax regulations is essential for avoiding legal issues and ensuring that employee rights and benefits are properly managed. Accurate reporting and timely payments are required to maintain good standing with government authorities.

Step 9: Onboard Your New Employees

Helping your new hires adjust quickly should be your number one priority after hiring a team. Start by providing a clear introduction to the company policies, work culture, and expectations. Clearly outline what you expect of employees. Then, assign a mentor or team leader for ongoing support and guidance.

Businesses that invest in employee development see higher productivity and retention rates. A strong onboarding experience builds a motivated workforce and sets the stage for long-term success.

Taiwan's Employment Laws and Work Culture

Taiwan has a well-developed legal framework and a highly skilled workforce, making it one of Asia’s most competitive economies. As businesses expand into the region, understanding labor laws, communication styles, and cultural norms is essential for building a compliant and productive team.

Companies hiring in Taiwan must follow national employment laws, respect cultural values, and address workforce expectations. Here’s what businesses should know when growing their teams in Taiwan.

Labor Rights and Employment Regulations

Taiwan’s labor laws are governed by the Labor Standards Act. It outlines employee protections, working hours, wages, leave, and termination procedures.

Employers are required to offer at least the minimum wage. Written contracts are strongly recommended, even if not always required by law. Employees work 8 hours per day, 40 hours per week, with compensation for overtime regulated by law.

Maternity leave includes 8 weeks of paid leave, with full pay for employees who have worked over 6 months. Fathers receive 5 days of paid paternity leave. Severance pay is mandatory if termination is due to employer-related reasons.

Employers with over 30 workers must register written work rules with the labor department. Following these requirements ensures fairness and reduces the risk of disputes.

Language and Communication at Work

The official language of Taiwan is Mandarin Chinese, and it is used in most business settings. While many professionals in Taiwan speak English — especially in technology, science, and international business — English is not widely spoken in all industries.

For customer-facing or local roles, fluency in Mandarin is typically required. However, English is often used for international or technical positions. Bilingual staff and translators are common in multinational companies.

Employers may also provide language training to support communication between teams and improve workplace collaboration. Clear communication policies help reduce misunderstandings and support a productive work environment.

Cultural Values and Workplace Norms

Taiwanese work culture is rooted in respect, discipline, and hierarchy. Professional relationships are often formal, especially with supervisors or senior colleagues. Titles and polite language are used frequently in the workplace.

Punctuality and hard work are highly valued. Employees are expected to meet deadlines and maintain a high standard of professionalism. Team harmony is important, and direct confrontation is usually avoided.

Workplace holidays reflect Taiwan’s cultural diversity. Major public holidays include the Lunar New Year, Dragon Boat Festival, and Mid-Autumn Festival. Many businesses provide leave or flexibility for family gatherings and observances. Creating a culturally sensitive workplace improves employee satisfaction and company image.

Internships and Talent Development

Taiwan has a well-educated youth population and a strong focus on career preparation. Many companies offer internship programs in engineering, finance, design, and software development.

Universities in Taiwan often collaborate with businesses through industry partnerships. Interns are seen as valuable contributors and future hires. Paid internships are encouraged, and most internships range from 2 to 6 months, with structured mentorship and training.

Companies that invest in training, certification support, and upskilling benefit from stronger retention and improved employee performance. Internships and early-career development also help address skill shortages in high-demand fields like AI, semiconductors, and green energy.

How to Hire Employees in Taiwan — Our Take

Taiwan’s expanding workforce, diverse industries, and trade partnerships make it an attractive destination for businesses looking to grow in Asia. However, hiring employees in Taiwan requires understanding cultural norms, workplace etiquette, and strict labor regulations to ensure compliance and long-term success.

Businesses that prioritize legal adherence and employee well-being can build a strong, competitive team. Remote People simplifies the process of hiring employees. Our Employer of Record (EOR) solution handles payroll, tax compliance, and work permits, allowing your company to focus on operational activities.

Whether you’re hiring local professionals or bringing in international talent, Remote People make it easier and faster. Expand into the Taiwanese market with confidence — Contact Remote People today!