RemotePad Logo

What is an Employer of Record

How to hire globally with an EOR

What is a Global PEO

An alternative to EOR

What is a PEO

Hire locally with a PEO

Our Methodology

Why you can trust our guides

Hire Globally

Find international talents

Outsource Recruitment

How to outsource recruitment

Work Visas

How to get a work visa

Digital Nomad Visas

Get a digital nomad visa

Best Employer of Record (EOR)

Hire globally with the best EOR companies

Best Contractor Management

Hire and pay contractors and freelancers

Best Global PEO

Discover the best international co-employers

Best PEO Companies

Save on payroll and HR costs

Best Background Check Companies

Screen employees before hire

Best Global Payroll Providers

Outsource international payroll

Best Relocation Services

Relocate employees internationally

International Company Registration

Get help to incorporate overseas

All Reviews

Compare all providers

1. Horizons

Best Global EOR

2. Remote

Best EOR for Compliance

3. Deel

Best EOR Platform

4. Papaya Global

Best EOR for Payments

All EOR Reviews

Compare all providers

Where do you need a service provider?

All Countries

Explore our detailed guides for professional advice on international growth, recruitment, compensations strategies, and a curated list of top service providers.

Hire Employees in Taiwan

Key Takeaways

  • Understand labor laws: Familiarize yourself with Taiwanese labor laws.
  • Advertise the job: Post the job on Taiwanese job websites, newspapers, or through local recruitment agencies.
  • Interview and select: Conduct interviews and select the best candidate.
  • Prepare an employment contract: Prepare a contract that complies with Taiwanese labor laws, and onboard the employee.

What Are the Key Things to Know Before Hiring Employees in Taiwan?

Before hiring employees in Taiwan, it’s essential to familiarize yourself with the local labor laws, regulations, and cultural practices. Here are some key points to keep in mind:

  1. Labor Laws and Regulations. Taiwan has specific labor laws and regulations, such as the Labor Standards Act (LSA), which governs employment relationships, and the Gender Equality in Employment Act, which promotes gender equality in the workplace. Familiarize yourself with these laws to ensure compliance.
  2. Employment Contracts. While oral contracts are legally binding in Taiwan, it is highly recommended to have written employment contracts. These contracts should include clear terms and conditions, such as the employee’s position, responsibilities, salary, working hours, leave entitlements, and the termination process.
  3. Probation Period. Taiwanese law allows employers to set a probation period for new employees, typically up to three months. During this period, both parties can terminate the employment relationship with a shorter notice period.
  4. Working Hours and Overtime. The standard working hours in Taiwan are eight hours per day and 40 hours per week. Overtime is generally limited to 46 hours per month and should be compensated according to the LSA’s requirements.
  5. Leave Entitlements. Employees in Taiwan are entitled to various types of leave, including annual leave, sick leave, maternity leave, paternity leave, and family care leave. Ensure you understand the rules and requirements for each type of leave.
  6. Minimum Wage and Benefits. Taiwan has a minimum wage, which is periodically adjusted. Employers are also required to contribute to the employees’ labor insurance, health insurance, and pension plans.
  7. Termination and Severance. Employers must provide a written notice and a valid reason for termination. Depending on the employee’s length of service, employers may need to provide severance pay as specified in the LSA.
  8. Non-compete Clauses. Non-compete clauses are permitted in Taiwan, but they must be reasonable in terms of duration, geographic scope, and the scope of restricted activities. The employer may also need to provide compensation during the non-compete period.
  9. Workplace Safety. Employers must ensure a safe working environment for their employees and comply with the Occupational Safety and Health Act.
  10. Cultural Considerations. Understanding Taiwanese business culture is crucial for fostering a positive working environment. This includes being respectful of hierarchy, adopting a consensus-driven decision-making approach, and emphasizing teamwork and harmony in the workplace.

Video: Hiring Employees in Taiwan

How Much Does It Cost to Hire Employees in Taiwan?

The cost of hiring employees in Taiwan can vary significantly based on the industry, the nature of the job, and the employee’s skills, qualifications, and experience. However, there are several standard components to consider when calculating the cost of hiring employees:

  1. Base Salary. This is typically the largest portion of employee costs. There is a minimum wage in Taiwan, but salaries for skilled positions care usually significantly higher. For more information, check out our guide to the average wage in Taiwan. 
  2. Statutory Benefits. Employers in Taiwan are required to contribute to labor insurance, health insurance, and pension funds for their employees. These contributions can amount to approximately 20% of the employee’s monthly wage.
  3. Other Benefits. In addition to statutory benefits, employers may choose to provide other benefits such as bonuses, housing allowances, transportation allowances, meal subsidies, or private health insurance. These can significantly increase the total cost of employment.
  4. Recruitment Costs. This includes the costs of advertising the position, conducting interviews, and possibly hiring a recruitment agency. The cost can vary widely depending on the complexity of the recruitment process.
  5. Training Costs. New employees may require training or orientation, which can also add to the cost of hiring.
  6. Legal and Administrative Costs. Setting up contracts, payroll, and complying with local labor laws can also incur costs, especially if you need to hire legal or HR experts.
  7. Severance Pay. In Taiwan, employers may need to provide severance pay when terminating an employee, which can be a significant cost.

Remember that these are estimated costs and the actual cost of hiring an employee in Taiwan can vary. You should consult with local HR and legal experts to get a more accurate understanding of the costs involved in your specific case.

What Are the Legal Requirements for Hiring Employees in Taiwan?

Hiring employees in Taiwan involves a number of legal requirements and obligations. Here are some of the key ones you should be aware of:

  1. Labor Laws. The primary legislation governing employment in Taiwan is the Labor Standards Act (LSA). The LSA outlines employers’ obligations relating to working hours, rest days, overtime, wages, and termination of employment contracts.
  2. Employment Contracts. While oral contracts are legally binding in Taiwan, it is highly recommended to have written employment contracts. The contract should clearly state the terms of the employment relationship, including the employee’s position, responsibilities, salary, working hours, and leave entitlements.
  3. Minimum Wage. Employers must comply with the minimum wage regulations. As of 2023, the minimum wage in Taiwan is NT$ 26,400. 
  4. Statutory Benefits. Employers are required to contribute to labor insurance, health insurance, and pension funds for their employees. The rates are set by the government and can amount to approximately 20% of the employee’s monthly wage.
  5. Working Hours and Overtime. The standard working hours in Taiwan are eight hours per day and 40 hours per week. Employees should not work more than 46 hours of overtime per month, and overtime should be compensated at the rates specified in the LSA.
  6. Leave Entitlements. Employees are entitled to various types of leave, including annual leave, sick leave, maternity leave, and paternity leave. Employers must comply with the rules and requirements for each type of leave.
  7. Termination and Severance. Employers must provide a written notice and a valid reason for termination. Depending on the employee’s length of service, employers may need to provide severance pay as specified in the LSA
  8. Non-Discrimination. Taiwan’s Gender Equality in Employment Act and the Employment Service Act prohibit discrimination in employment on the basis of factors such as gender, marital status, pregnancy, and family responsibilities.
  9. Workplace Safety. Employers are required to comply with the Occupational Safety and Health Act, which aims to ensure a safe working environment.
  10. Record Keeping. Employers are required to keep records of their employees’ work hours, wages, and leave.

These are some of the key legal requirements for hiring employees in Taiwan, but this is not an exhaustive list. The specific requirements can vary depending on the nature of the job and the industry. It’s highly recommended to consult with a local legal or HR expert to ensure compliance with all local laws and regulations.

What Are the Key Ways to Hire Employees in Taiwan?

Hiring employees in Taiwan can be done in several ways, each with its own advantages and complexities. Here are some of the most common methods:

  1. Direct Hiring. This is the most traditional method where you hire employees directly, either through job postings, recruitment agencies, or networking. This requires a solid understanding of local labor laws and practices, as well as the ability to manage payroll, tax, and other HR tasks in Taiwan.
  2. Professional Employer Organization (PEO). A PEO acts as a co-employer to your employees. The PEO in Malaysia hires employees on your behalf and takes care of all HR-related tasks such as payroll, tax, and compliance with local labor laws. However, you still maintain control over the employees’ day-to-day tasks and responsibilities. A Taiwan PEO often offers support with other employment-related processes such as Taiwan work permits and visas. 
  3. Employer of Record (EOR). An EOR is similar to a PEO, but they become the legal employer for your Malaysia-based employees. In addition to handling HR tasks, an EOR also assumes legal responsibility for the employees. This can provide an extra layer of protection, but it also means that the EOR has more control over the employees.
  4. Staffing Agencies. Staffing agencies can help you find temporary or contract workers in Taiwan. This can be a good option if you need employees for a short-term project or if you want to try out an employee before offering them a permanent position.
  5. Joint Venture or Partnership. If you’re planning to establish a long-term presence in Taiwan, you might consider forming a joint venture or partnership with a local company. This can provide you with local expertise and resources, but it also involves sharing control over the business.
  6. Establishing a Local Entity. If you have significant operations in Taiwan, it might be worth establishing a local entity such as a branch office or a subsidiary. This can give you more control over your operations, but it also involves significant costs and legal responsibilities.

Each of these methods has its own pros and cons, and the best option will depend on your specific circumstances and needs. It’s recommended to consult with a legal or HR expert to help you decide the best approach for your business.

What Are the Steps Businesses Need to Take to Hire Employees in Taiwan?

Hiring employees in Taiwan involves several steps, from identifying your staffing needs to ensuring legal compliance. Here’s a general overview:

  1. Identify Staffing Needs. Before you start the hiring process, define the roles and responsibilities of the position, the skills and qualifications required, and the salary range.
  2. Recruitment. Post job vacancies on job portals, websites, or engage recruitment agencies to find potential candidates. You can also utilize networking events and social media platforms.
  3. Interview Process. Screen resumes, conduct interviews, and evaluate candidates based on their skills, experience, and fit with your company culture.
  4. Job Offer. Once you’ve chosen a candidate, extend a job offer. This typically includes details about the position, salary, benefits, and other terms of employment.
  5. Employment Contract. Draft an employment contract in accordance with Taiwan’s Labor Standards Act. It should clearly state the terms of the employment relationship, including the employee’s position, responsibilities, salary, working hours, and leave entitlements.
  6. Onboarding. Once the candidate accepts the offer and signs the contract, you should conduct an onboarding process to introduce them to their role and your company’s policies and procedures.
  7. Register Employee. After hiring, register the employee with the relevant government agencies. This typically involves enrolling them in labor insurance, health insurance, and pension plans.
  8. Payroll Setup. Set up payroll for the new employee, ensuring compliance with Taiwan’s tax laws and regulations.
  9. Compliance. Ensure compliance with all relevant labor laws, including working hours, rest days, overtime, minimum wage, leave entitlements, and workplace safety requirements.
  10. Ongoing HR Management. Manage ongoing HR tasks such as performance management, payroll, leave management, and legal compliance.

These steps provide a general outline of the process, but the specifics can vary depending on your company’s size, industry, and the nature of the job. It’s recommended to consult with local HR or legal experts to ensure that you follow all the necessary procedures and comply with local labor laws.

Hiring Employees in Taiwan — Our Take

Any company hiring in Taiwan needs to carefully consider Taiwan labor and tax laws, and how the best way of recruiting top Taiwan staff. For international companies unfamiliar with Taiwan hiring, it may be worth considering support from a Taiwan Professional Employer Organization or Taiwan Employer of Record to smoot the transition in to the Taiwan marketplace. 

FAQs

The standard working week in Taiwan is 40 hours, typically spread over five days with eight hours per day.

  1. Yes, non-compete agreements are enforceable in Taiwan, but they must be reasonable in terms of duration, geographic scope, and the scope of restricted activities. Moreover, the employer may need to provide compensation during the non-compete period.

To terminate an employment contract, the employer must provide a written notice and a valid reason for termination. The notice period can vary depending on the employee's length of service and the reasons for termination. Depending on the circumstances, the employer may also need to provide severance pay.

cropped Milly Barker AIV Photo
Article By
Milly is an international lawyer and tech entrepreneur who has advised companies on expanding globally for over 5 years. She is an advocate of remote hiring and regularly consults on future of work matters. Milly founded RemotePad to help employers learn more about building and growing international teams.

Search

Search