Employer of Record in Taiwan

An Employer of Record, or EOR, is a straightforward solution for hiring employees in Taiwan without setting up a local company. Think of it as a partner that becomes the legal employer for your team members in Taiwan. This partner handles all the local HR tasks, like payroll, taxes, benefits, and employment contracts, making sure everything follows Taiwanese labor laws. This lets you focus on your business while the EOR takes care of the employment details. For companies looking to hire in Taiwan, providers like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Taiwan

Using an EOR in Taiwan simplifies hiring and employment management. Here’s how it typically works:

1. You Find the Talent You identify the person you want to hire in Taiwan. You manage their day-to-day work, projects, and performance, just like any other employee.
2. The EOR Hires Them Legally The EOR drafts a local employment contract that complies with Taiwanese labor laws. They then legally hire the employee on your behalf.
3. Onboarding and HR is Handled The EOR manages the onboarding process, including setting up payroll, enrolling the employee in mandatory social security and health insurance programs, and ensuring all tax forms are in order.
4. Payroll and Benefits are Managed Each month, the EOR processes payroll, deducts the correct taxes and social contributions, and pays your employee accurately and on time. They also administer any benefits you choose to offer.
5. Ongoing Compliance is Ensured The EOR stays up-to-date with any changes in Taiwan's employment regulations to keep your business compliant. This reduces the risk of legal issues.

Why use an Employer of Record in Taiwan

Using an EOR in Taiwan offers a practical way to build a team without the usual complexities of international expansion. It’s a solution that helps you move faster and reduce risk.

Here are some of the key benefits:

• Avoid Setting Up a Legal Entity You can hire employees in Taiwan without going through the lengthy and expensive process of establishing a local branch or subsidiary.
• Stay Compliant with Local Laws EORs are experts in Taiwanese labor law. They ensure that your employment contracts, payroll, and benefits are all fully compliant with local regulations, minimizing legal risks.
• Simplify HR and Payroll An EOR handles all the administrative burdens of HR, including payroll processing, tax withholding, and benefits management. This frees up your time to focus on your core business activities.
• Faster Market Entry You can onboard new employees and start operating in Taiwan much more quickly than if you were to set up your own legal entity.
• Attract Top Talent Offering competitive, locally compliant benefits is easier with an EOR. This can help you attract and retain the best talent in the Taiwanese market.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Taiwan includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Taiwan.

Hiring in Taiwan means tapping into a highly skilled workforce in a bustling East Asian economy. The process can seem complex, especially for companies new to the region. But understanding the local labor laws and cultural nuances can make it a smooth process. Taiwanese culture values respect, hierarchy, and building strong relationships in the workplace.

Employment contracts & must‑have clauses

While you can make verbal agreements, a written employment contract is the standard in Taiwan. It provides clarity and legal protection for both you and your employee. Contracts are typically open-ended for ongoing work. You can only use fixed-term contracts for temporary or seasonal projects.

Your employment contracts in Taiwan should include these key elements:

• Job details: Clearly define the employee's title, responsibilities, and work location.
• Contract type: Specify if it is a fixed-term or indefinite-term contract.
• Working hours: State the standard work hours, which are typically 8 hours a day and 40 hours a week.
• Compensation: Detail the salary, any bonuses, and allowances.
• Leave policies: Outline the entitlements for annual leave, sick leave, and other statutory leaves.
• Termination terms: Include the required notice periods and conditions for severance pay.

Probation periods

You can include a probation period in the employment contract to assess a new hire's suitability. While the Labor Standards Act doesn't specify a maximum duration, a period of three to six months is common practice. During this time, employees have the same rights and protections as regular employees.

Working hours & overtime

The standard workweek in Taiwan is 40 hours, based on an 8-hour workday. Any work beyond these hours is considered overtime.

Here’s how you should handle overtime:

There are limits to overtime. An employee cannot work more than 12 hours in a single day, and monthly overtime should not exceed 46 hours.

Public & regional holidays

Your employees in Taiwan are entitled to paid time off for public holidays. Here are the national public holidays for 2025:

• January 1: New Year's Day / Republic Day
• January 25 - February 2: Chinese New Year
• February 28: Peace Memorial Day
• April 5: Children's Day & Tomb Sweeping Day
• May 1: Labor Day
• May 31: Dragon Boat Festival
• October 6: Mid-Autumn Festival
• October 10: National Day

Hiring contractors in Taiwan

You can hire independent contractors for project-based work. This offers flexibility and access to specialized skills. Contractors are self-employed and manage their own taxes and benefits. This means you are not responsible for their social security contributions or income tax withholding.

However, you must correctly classify your workers. Misclassifying an employee as an independent contractor can lead to significant penalties. This includes back payments for benefits and taxes. The key distinction lies in control. You direct an employee's work, while a contractor has autonomy over how they complete their tasks.

An Employer of Record (EOR) can help you avoid these risks. We handle the legal complexities of worker classification. We ensure you engage contractors in a compliant manner, protecting you from misclassification risks. An EOR allows you to tap into the talent you need without the legal guesswork.

Understanding compensation and payroll in Taiwan is straightforward. The system is well-regulated, focusing on fairness and clarity for both you and your employees. The main law governing everything is the Labor Standards Act (LSA). It sets the rules for wages, working hours, leave, and more, ensuring a clear framework for employment. Most workers in Taiwan fall under this act, which helps create a stable and predictable business environment.

Payroll cycles & wage structure

In Taiwan, you pay your employees monthly. This is the standard and most common payroll cycle.

Your employee's salary has a few main parts:

• Base income: This is the fixed, regular salary you agree upon in the employment contract.
• Allowances: You can offer various allowances for things like housing, meals, or transportation.
• Bonuses: Annual or performance-based bonuses are common and can be a significant part of total compensation. A 13th-month bonus, paid before the Lunar New Year, is a widespread practice.

Overtime & minimums

Taiwan has clear rules for minimum wage and overtime pay to protect employees.

As of January 1, 2024, the minimum wage is:

• Monthly: TWD 27,470
• Hourly: TWD 183

You must pay overtime for any work done beyond the standard hours. The rates are:

• First 2 hours: 134% of the employee's regular hourly rate.
• Next 2 hours: 167% of the employee's regular hourly rate.

Different rates apply for work on rest days or national holidays.

Employer taxes and contributions

As an employer, you are responsible for several contributions on behalf of your employees. These are mandatory social security programs.

Employee taxes and deductions

Employees also contribute to social security programs and pay income tax. You withhold these amounts directly from their salary.

In Taiwan, you'll find a solid foundation of employee benefits and leave mandated by law. This ensures everyone gets fair treatment and time off. The system is designed to support a healthy work-life balance and provide a safety net for important life events. Beyond the legal requirements, many companies offer extra perks to attract and keep talented people.

Statutory leave

The government sets minimum leave requirements for all employers. Here’s a look at the basics.

• Annual Leave: Your amount of paid time off increases with your years of service.
  • 6 months to 1 year: 3 days
  • 1 to 2 years: 7 days
  • 2 to 3 years: 10 days
  • 3 to 5 years: 14 days
  • 5 to 10 years: 15 days
  • Over 10 years: An extra day for each year, up to 30 days total.
• Sick Leave: You can take up to 30 days of sick leave per year at half pay. If you are hospitalized, you can take up to one year of sick leave.
• Maternity Leave: If you have worked for more than six months, you get eight weeks of fully paid maternity leave. For less than six months of service, the leave is paid at half your regular wage. You also get seven days of paid leave for pregnancy check-ups.
• Paternity Leave: You are entitled to 7 days of paid leave to support your partner after childbirth.
• Family Care Leave: You can take up to 7 days of leave per year to care for a family member.
• Marriage Leave: You are entitled to 8 days of paid leave when you get married.

Public holidays & regional holidays

Employees in Taiwan are entitled to paid time off for public holidays. Here is a list of the national public holidays.

Typical supplemental benefits

While the law mandates certain benefits, many companies offer more to stay competitive. Here’s a look at what’s required versus what’s often added.

How an EOR can help with setting up benefits

Setting up a benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR acts as the legal employer for your team in Taiwan. This means they handle all the administrative tasks related to HR and payroll. They ensure you comply with all local labor laws, including mandatory benefits and leave.

Here's how an EOR can help:

• Compliance: They stay up to date on all local regulations, so you don't have to.
• Administration: They manage everything from payroll to benefits enrollment.
• Expertise: They can advise you on competitive supplemental benefits to attract top talent.
• Simplicity: You get one point of contact for all your HR needs in Taiwan.

Using an EOR allows you to offer your employees a comprehensive and compliant benefits package without the headache of managing it yourself.

Letting an employee go in Taiwan involves specific legal steps. You cannot terminate someone's employment for any reason. The law, specifically the Labor Standards Act (LSA), sets out clear rules you must follow. This includes providing valid reasons for dismissal, giving the correct notice period, and calculating severance pay accurately. Getting this process wrong can lead to legal trouble and damage to your company's reputation.

Notice Periods

When you terminate an employment contract for reasons without cause, you must give the employee advance notice. The length of this notice period depends on how long the employee has worked for you.

Here is a simple breakdown of the minimum notice required:

• 3 months to 1 year of service: 10 days notice
• 1 to 3 years of service: 20 days notice
• Over 3 years of service: 30 days notice

You must provide this notice in writing. Alternatively, you can pay the employee their salary for the notice period instead of having them work. If you are terminating an employee for serious misconduct, you generally do not need to provide a notice period.

Severance Pay

In most cases of termination without cause, you must provide severance pay. The calculation depends on the employee's start date and which labor law applies to them.

For employees covered by the Labor Pension Act (typically those who started after July 1, 2005), the formula is:

• Half of the employee's average monthly wage for each year of service.
• This is capped at a maximum of six months' average wages.

You must pay all final wages, including unused leave and severance, promptly. This is typically done within 30 days of the termination date.

How Rivermate Handles Compliant Exits

When you partner with an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure every step is compliant with Taiwan's labor laws.

Here’s how we handle it:

• Documentation: We prepare and handle all necessary termination documents, ensuring the reasons for dismissal are legally sound.
• Calculations: We accurately calculate notice periods, severance pay, and any other final payments due to the employee.
• Communication: We guide you on how to communicate the termination to the employee, ensuring a professional and respectful process.
• Deregistration: We complete the necessary deregistration from social insurance and pension authorities.

By managing these critical steps, we help you avoid legal risks and ensure a smooth and compliant exit for your employees in Taiwan.

Getting the right visas and work permits in Taiwan is straightforward when you know the process. For anyone looking to work in Taiwan long-term, you will need a work permit, a visa, and a residence permit. Think of it as a three-step process. Your employer kicks things off by getting a work permit for you. With that in hand, you can apply for your work visa. Once you arrive in Taiwan, you have 15 days to get your Alien Resident Certificate (ARC), which allows you to live and work in the country legally.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical way to hire employees in Taiwan without setting up your own local company. An EOR is a third-party company that legally employs workers on your behalf.

Here's what an EOR in Taiwan can typically do for you:

• Sponsor work permits They can apply for and obtain the necessary work permits for your foreign employees.
• Handle visa applications EORs guide employees through the visa application process.
• Manage legal and HR tasks This includes payroll, taxes, benefits, and ensuring you comply with Taiwanese labor laws.

This arrangement allows you to bring in global talent without the time and expense of establishing a legal entity in Taiwan.

Business travel compliance

For short-term business trips, many nationalities can enter Taiwan without a visa for up to 90 days. This visa-free entry is suitable for activities like:

• Attending business meetings
• Visiting clients
• Going to conferences

It is important to remember that you cannot work on a visitor visa. If you plan to stay for longer than 90 days or engage in paid work, you will need a proper work visa.

Starting October 1, 2025, all foreign visitors without Taiwanese residency will need to complete a digital Taiwan Arrival Card (TWAC) before traveling to Taiwan. This will replace the paper arrival cards currently in use.