Hire compliantly in Taiwan. Navigate Labor Insurance, National Health Insurance, a mandatory 6% pension contribution and a Labor Standards Act where overtime rules and leave entitlements are strictly enforced.
Capital
Taipei
Language
Chinese
Average Salary
NT$58,000
Payroll Cycle
Monthly
Employer Cost
15-20%
Paid Leave
3-30 days
Public Holidays
12 days
Tax Rates
5-40%
Hiring guides covering regulations, contributions and costs specific to Taiwan. Updated for 2026.
The average salary in Taiwan is approximately NT$58,000 gross per month in 2026, with a median closer to NT$45,000. Taiwan's economy is dominated by semiconductors and technology, with TSMC alone producing nearly 90% of the world's most advanced chips. The minimum wage is NT$29,500 per month from January 2026. Employer costs add approximately 14-19% on top of gross salary through labor insurance, National Health Insurance, and mandatory pension contributions. This guide covers average salaries by sector, city, and experience level, the full employer cost breakdown, income tax brackets, and how Taiwan compares to other Asian hiring markets.
Read ArticleTaiwan’s minimum wage is NT$29,500 per month (approximately US$967) and NT$196 per hour as of 1 January 2026, a 3.18% increase from the previous year. This marks the 10th consecutive annual increase, reflecting the government’s sustained policy of raising wages in line with economic growth and inflation. An estimated 2.47 million workers benefit from the adjustment. Taiwan’s minimum wage is a national flat rate that applies uniformly across all industries and regions. This guide covers the current minimum wage rates, mandatory employer contributions (Labor Insurance, National Health Insurance, Labor Pension), working hours and overtime rules under the Labor Standards Act, leave entitlements, penalties for non-compliance, and what international companies hiring in Taiwan need to know.
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Taiwan calculates Labor Insurance, NHI and pension contributions using bracket-based insured salary tables, not flat percentages on gross pay. A provider applying simple percentage math to actual salary will produce incorrect contributions that fail reconciliation with the Bureau of Labor Insurance.
Our assessment of providers in Taiwan evaluates Labor Insurance accuracy, NHI premium handling, pension compliance and Labor Standards Act adherence.
Taiwan's leave entitlement scales steeply with tenure and the Labor Standards Act's overtime caps are enforced with criminal penalties, not just fines.
| Key Employment Facts | |
| Minimum Wage | TWD 29,500/month (TWD 196/hour, from January 2026) |
| Probation Period | No statutory provision (typically 3 months contractual) |
| Standard Working Hours | 40 hours/week (8 hours/day) |
| Paid Annual Leave | 3 days (6 months), 7 days (1 year), scaling to 30 days (10+ years) |
| Notice Period | 10-30 days (by tenure) |
| 13th Salary | Not statutory (year-end bonus of 1-2 months common) |
| Sick Leave | 30 days/year at 50% pay (employer-funded) |
| Maternity Leave | 8 weeks at full pay (employer-funded) |
Good to Know: Taiwan’s Labor Standards Act does not formally recognize a probation period. Any “probation” written into a contract has no special legal status. Termination during probation still requires a valid statutory ground under Article 11 or 12 of the LSA. Employers cannot simply end employment because “probation failed” without meeting the legal threshold for dismissal.
Taiwan's employer contribution system spans five separate programs, each with its own insured salary bracket table, cap and calculation method. Total employer cost runs 15-20% of insured salary depending on industry risk and employee salary level.
| Employer Contributions (2026) | |
| Contribution | Employer Rate |
| Labor Insurance (employer share, 70%) | ~8.05% (capped at TWD 45,800 insured salary) |
| Employment Insurance (employer share, 70%) | ~0.70% (capped at TWD 45,800) |
| Occupational Accident Insurance | 0.11-0.93% (industry risk, employer only) |
| NHI (employer share, 60% x 1.56 dependents) | ~4.84% (capped at TWD 313,000) |
| Labor Pension (mandatory) | 6% minimum (capped at TWD 150,000) |
| Wage Compensation Fund | 0.025% |
| Total Employer Cost | ~15-20% of insured salary |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Income Tax (progressive) | 5-40% (5 brackets) |
| Labor Insurance (employee share, 20%) | ~2.30% |
| Employment Insurance (employee share, 20%) | ~0.20% |
| NHI (employee share, 30%) | ~1.55% |
| Labor Pension (voluntary) | Up to 6% (tax-deductible) |
Good to Know: For an employee earning TWD 60,000/month in Taipei: Labor Insurance employer share ~TWD 3,700, NHI employer share ~TWD 2,900, Labor Pension TWD 3,600 (6%), Employment Insurance ~TWD 420, Occupational Accident ~TWD 200. Total employer cost: approximately TWD 70,800/month or 1.18x salary. The pension cap at TWD 150,000 means employer pension cost flattens at TWD 9,000/month for high earners. Above that salary, effective employer contribution percentage drops. Year-end bonuses of 1-2 months are culturally expected and trigger supplementary NHI premium at 2%.
Taiwan has approximately 12 public holidays per year. The government creates extended breaks through adjusted working days, where a nearby Saturday becomes a make-up workday.
|
Date |
Holiday |
|
January 1 |
New Year’s Day (Yuandan) |
|
February 16-20 |
Lunar New Year (5 statutory days, extended to 9 with weekends) |
|
February 28 |
Peace Memorial Day |
|
April 4 |
Children’s Day |
|
April 5 |
Tomb Sweeping Day (Qingming) |
|
May 1 |
Labour Day |
|
June 19 |
Dragon Boat Festival (Duanwu) |
|
September 25 |
Mid-Autumn Festival (Zhongqiu) |
|
September 28 |
Teachers’ Day (Confucius Birthday) |
|
October 10 |
National Day (Double Ten) |
|
October 25 |
Retrocession Day |
|
December 25 |
Constitution Day |
Good to Know: Lunar New Year is Taiwan’s most significant holiday. In 2026, the official break runs February 14-22 (9 consecutive days including weekends and adjusted days). Businesses effectively shut down. Make-up Saturdays are scheduled before or after the holiday to compensate. Employees must work those Saturdays or use annual leave. Your attendance system must distinguish between regular Saturdays (off) and make-up Saturdays (working days).
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