# Hiring in Taiwan: employment costs, payroll and compliance

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> Statutory data last updated: 2026-01-12. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | TWD (New Taiwan Dollar) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | NT$27,400 | 2024 |
| Payroll cycle | monthly | 2026 |
| 13th-month salary | none | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 14.6% | 2024 |
| Employee social security | 2.4% | 2024 |
| Corporate tax rate | 20% | 2026 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 3.8 weeks | 2019 |
| Severance pay | 11.6 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 15 days | 2026 |
| Public holidays | 16 days | 2026 |
| Maternity leave | 8 weeks | 2026 |
| Paternity leave | 1 week | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Union density | 32.2% | 2017 |

## Overview

The most common mistake foreign employers make in Taiwan is treating it like a straightforward low-cost hire. The island has a well-developed labour law framework, and the numbers add up faster than many expect. An Employer of Record (EOR) lets you put someone on a compliant Taiwanese payroll without setting up a local entity, which can take months and carries its own administrative weight.

The figures you need to keep front of mind: the monthly minimum wage sits at 27,400 TWD, employer social security contributions run at 14.59% of gross, and severance exposure averages around 11.6 weeks. Those three numbers together give you a realistic floor for what a hire actually costs before you factor in any salary premium for skilled talent.

## Cost context

The main driver of employer cost in Taiwan is the social security contribution rate of 14.59% on top of gross salary. Employees contribute a further 2.4% on their side, but as the employer you are responsible for withholding and remitting both portions correctly each month. There are no additional itemised contributions in the data record beyond those figures, so the 14.59% rate is the key number to plug into any cost model you build.

## Things to watch

A few things about Taiwan's employment rules catch foreign employers off guard more than others.

- Employer social security is not a small line item. At 14.59% of gross, it adds meaningfully to every payroll run. Budget for it from day one rather than treating it as a footnote.

- Severance is a real liability. An average exposure of 11.6 weeks means that ending an employment relationship carries a cost you need to plan for upfront, not after the fact.

- Notice periods are set by law. The average notice period of 3.8 weeks is a legal floor, not a suggestion. You cannot simply agree a shorter period informally and expect it to hold.

- Taiwan's labour inspectorate is active. Misclassifying a worker as a contractor when the relationship looks like employment is a compliance risk that local authorities take seriously. An EOR removes that ambiguity entirely.

Providers ranked for Taiwan: https://eoroverview.com/best/taiwan/