Minimum Wage in Taiwan: The Complete 2026 Guide

Taiwan’s minimum wage is set through the Minimum Wage Deliberation Committee, which comprises labour representatives, employer representatives, scholars, and government officials. The Committee reviews factors including the Consumer Price Index (CPI), GDP growth, and labour productivity before recommending adjustments to the Ministry of Labor (MOL). The Executive Yuan approves the final rate. The 2026 increase was based on a CPI increase of 1.76% and GDP growth forecast of 4.45%.

The minimum wage applies to all employees covered by the Labor Standards Act (LSA), regardless of industry, nationality, or region. Taiwan does not operate regional or sectoral minimum wages. The rate is the same in Taipei, Hsinchu, Taichung, Kaohsiung, and all other cities and counties.

President Lai Ching-te has signalled that the minimum wage will be raised again in 2026, with a target of exceeding NT$30,000 per month.

The minimum wage applies broadly under the Labor Standards Act:

• All full-time employees in firms with five or more employees in industry and commerce
• Part-time and hourly workers (at the hourly minimum of NT$196)
• Foreign workers with valid work permits
• Workers paid by hour, day, month, or piece rate (total earnings must meet the minimum)

Exemptions and Special Categories

• Domestic workers: Not covered by the Labor Standards Act and therefore not subject to the statutory minimum wage
• Certain public sector employees: Governed by separate civil service regulations
• Apprentices and trainees: May be subject to different arrangements depending on the training programme

Taiwan’s employer contribution structure spans three main programmes: Labor Insurance, National Health Insurance, and the Labor Pension Fund. Total employer contributions are approximately 15–17% of the employee’s insured salary.

Labor Insurance (LI)

Covers disability, death, retirement pensions, maternity, and injury/sickness benefits.

• Total premium rate: ~11.5% of insured salary (including 1% employment insurance)
• Employer share: 70% of the premium (~8.05%)
• Employee share: 20% (~2.3%)
• Government subsidy: 10% (~1.15%)
• Insured salary cap: NT$45,800/month

Occupational Accident Insurance

Introduced under the Occupational Accident Insurance and Protection Act (2022), this is a separate employer-funded contribution.

• Employer rate: 0.11%–0.93% of insured salary, depending on industry risk level

National Health Insurance (NHI)

Taiwan’s universal healthcare system, providing comprehensive medical coverage for employees and their dependents.

• Total premium rate: 5.17% of insured salary
• Employer share: 60% of the premium × (1 + average dependents of 1.56) = ~4.84%
• Employee share: 30% (~1.55%)
• Government subsidy: 10%
• Insured salary cap: NT$150,000/month (for NHI calculation purposes)
• Supplementary NHI premium: 2.11% on bonus payments exceeding 4 times the monthly insured salary

Labor Pension Fund (LPP)

A mandatory defined-contribution individual pension account system.

• Employer contribution: Minimum 6% of the employee’s monthly salary (mandatory)
• Employee voluntary contribution: Up to 6% of monthly salary (tax-deductible)
• Salary cap: NT$150,000/month

From April 2026, defined-contribution pension coverage under the Labor Pension Act is extended to foreign professionals. Defined-benefit pension contributions also become mandatory for long-serving foreign manual workers.

Total Employer Cost Summary

For a minimum wage employee earning NT$29,500/month:

Employers should budget approximately 17–20% above gross salary for mandatory statutory contributions in Taiwan, depending on industry risk classification for occupational accident insurance. This is moderate by Asian standards and comparable to South Korea (~15%) but lower than Japan (~16–17%) and significantly lower than China (~27–30%).

Working hours in Taiwan are governed by the Labor Standards Act (LSA):

• Standard working hours: 8 hours per day, 40 hours per week
• Maximum total hours (including overtime): 12 hours per day
• Maximum overtime: 46 hours per month (can be extended to 54 hours/month with union or labour-management conference consent, capped at 138 hours over 3 months)
• Rest days: 2 days off per 7 days worked: 1 mandatory rest day (no overtime allowed except emergencies) and 1 flexible rest day (overtime permitted with premium pay)
• Break: At least 30 minutes after 4 consecutive hours of work

Overtime Rates

Employers may offer compensatory leave in lieu of overtime pay with the employee’s consent, at a 1:1 ratio. The compensatory leave must be taken by the end of the calendar year in which the overtime was worked.

Annual Leave (Special Leave)

Annual leave in Taiwan is based on length of continuous service with the same employer:

Other Leave

• Public holidays: 16 statutory paid public holidays per year, including Lunar New Year (9-day break in 2026), Labour Day, National Day, and others
• Maternity leave: 8 weeks paid (100% salary if employed 6+ months; 50% if less than 6 months)
• Paternity leave: 7 days paid
• Sick leave: 30 days per year at 50% of regular salary. If hospitalised, up to 1 year of leave within a 2-year period
• Bereavement leave: 3–8 days depending on the relationship

Taiwan enforces minimum wage and labour law compliance through the Ministry of Labor and local labour inspection offices:

• Minimum wage violations: Fines of NT$20,000–NT$1,000,000. Repeat offenders can face higher penalties and public disclosure of the company name.
• Overtime violations: Fines for exceeding maximum overtime hours, failing to pay overtime premiums, or not maintaining attendance records (which must be kept for 5 years and recorded to the minute).
• Labor Insurance non-compliance: Late enrollment or contribution penalties, including fines and potential criminal charges for severe non-compliance.
• NHI non-compliance: Employers who fail to enroll employees face fines and liability for the employee’s medical expenses during the unenrolled period.

The monthly minimum wage has increased by 47.4% since 2016, while the hourly rate has increased by 63.3% over the same period. The faster growth in the hourly rate reflects the government’s focus on improving conditions for part-time and gig workers.

Taiwan’s minimum wage sits between South Korea/Japan and the lower-cost Southeast Asian markets. The employer contribution burden of ~17–20% is moderate and comparable to South Korea and Japan. Taiwan’s advantage lies in its world-class semiconductor and technology ecosystem, strong IP protections, well-educated English-proficient workforce, and stable regulatory environment.

• Wages must be paid in New Taiwan Dollars (NT$). Payment must be made at least twice per month unless otherwise agreed. Employers must maintain detailed payroll records and keep attendance records for 5 years, recorded to the minute.
• The minimum wage is a national flat rate. There are no regional or industry-specific variations. The same NT$29,500 monthly rate applies in Taipei, Hsinchu, Taichung, and all other locations.
• Employer contributions total approximately 17–20% above gross. The 6% Labor Pension, ~8% Labor Insurance, and ~4.8% NHI (employer shares) create a meaningful overhead that must be factored into total compensation budgets.
• Foreign workers are now covered by the Labor Pension scheme. From April 2026, defined-contribution pension coverage extends to foreign professionals, increasing the employer cost of hiring expatriates.
• Overtime is strictly regulated. Maximum 46 hours/month (extendable to 54 with consent), 12-hour daily cap, and stepped premium rates. Attendance records must be kept to the minute for 5 years. Non-compliance attracts significant fines.
• Using an Employer of Record (EOR) is the most practical route for international companies without a Taiwanese entity. An EOR handles Labor Insurance and NHI enrollment, Labor Pension Fund contributions, LSA-compliant employment contracts, payroll in NT$, and all statutory filings with the Bureau of Labor Insurance and NHI Administration.

For a full breakdown of EOR options in Taiwan, see our Best Employer of Record in Taiwan guide.

Taiwan’s minimum wage of NT$29,500 per month (~US$967) represents the 10th consecutive annual increase, with the government signalling a target of exceeding NT$30,000 in the near future. The national flat rate applies uniformly across all industries and regions, making compliance straightforward for international companies.

Total employer cost is approximately 17–20% above gross salary, driven primarily by the 6% Labor Pension Fund contribution, ~8% Labor Insurance, and ~4.8% NHI employer share. Working hours are capped at 40 per week with strictly regulated overtime (maximum 46 hours/month), and the LSA mandates detailed attendance records kept to the minute for 5 years.

For international companies, Taiwan offers access to one of Asia’s most skilled workforces, particularly in semiconductors, advanced manufacturing, and technology, at salary levels below South Korea and Japan with comparable employer contribution rates. Companies hiring in Taiwan without a local entity should work with an Employer of Record to handle statutory registrations, contribution calculations, and Labour Standards Act compliance.