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Hire in Taiwan,
compliantly,
without the complexity.

We become the legal employer for your international workforce in Taiwan. You keep full control of your team — we handle payroll, taxes, benefits, and local compliance.

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Official NameRepublic of China (Taiwan)
CapitalTaipei (Hsinchu Science Park: Global Semiconductor Capital - TSMC)
CurrencyNew Taiwan Dollar (TWD / NT$)
Official LanguageMandarin Chinese (Traditional Chinese; English widely used in tech)
Population~23.5 million (World's #1 Semiconductor Superpower, ~$800B+ USD GDP)
Time ZoneTaipei Standard Time (TST, UTC+8, no DST)
Minimum WageNT$ 27,470 / month (or NT$ 183 / hour under Labour Standards Act)
Labor Insurance (LI)8.40% Employer / 2.40% Employee (12.0% Total, capped monthly base)
National Health Insurance (NHI)3.10% Employer (plus 1.7x multiplier) / 1.55% Employee (5.17% Total)
Labor Pension (Labor Pension Act)6.0% Employer mandatory defined-contribution pension fund
Employment Insurance (EI)0.70% Employer / 0.20% Employee (1.0% Total)
Annual Vacation (LSA Article 38)3 days (6 mo) / 7 days (1 yr) / 10 days (2 yr) / 14 days (3 yr) / up to 30 days
Standard Workweek40 hours/week (8 hours/day over 5 days under Labour Standards Act)

Taiwan is the undisputed global epicenter of advanced semiconductor manufacturing, artificial intelligence hardware, and high-tech electronics engineering (~$800+ billion USD GDP). Anchored by the Hsinchu Science Park and Southern Taiwan Science Park, Taiwan manufactures over 60% of the world's semiconductors and more than 90% of the world's most advanced sub-3nm AI microchips (led by TSMC – Taiwan Semiconductor Manufacturing Company, alongside MediaTek, Foxconn, ASUS, and Quanta Computer). Taiwan offers an elite concentration of hardware engineers, firmware developers, and advanced supply chain architects. Hiring employees in Taiwan requires compliance with the Taiwan Labour Standards Act (**LSA**), mandatory contributions to **Labor Insurance (LI)**, **National Health Insurance (NHI)**, Employment Insurance (**EI**), the **Labor Pension Act** (mandatory 6.0% employer defined-contribution pension), and progressive personal income tax withholding with the National Taxation Bureau. Setting up a local company takes 3 to 6+ weeks via the MOEA Investment Commission. A Global Employer of Record (EOR) enables international hardware, AI, and software companies to hire Taiwanese engineers legally, managing LSA contracts, Labor Insurance and NHI remittances, 6% Labor Pension deposits, and compliant TWD payroll.

Economic Overview, World Semiconductor Capital (TSMC) & AI Hardware

Taiwan is the silicon backbone of global technology, producing world-leading advanced AI chips and server hardware.

Key Economic Clusters

  • Advanced Semiconductor Foundry (TSMC): Sub-3nm chip fabrication powering global AI data centers and mobile silicon.
  • AI Server & Hardware Engineering: Foxconn, Quanta, and ASUS manufacturing NVIDIA AI computing architectures.
  • Fabless IC Design & Firmware: MediaTek and Realtek leading mobile processing and wireless communication chips.

Employment Contracts, Labour Standards Act (LSA) & Probation

Regulated by the Labour Standards Act (LSA).

  • Written Statement of Terms: Mandatory in Traditional Chinese (or bilingual) detailing wages and terms.
  • Probation Period: Standard commercial practice is 3 months.

Working Hours, Overtime Multipliers (1.34× / 1.67×) & Rest Days

  • Standard Hours: 40 hours per week (8 hours/day over 5 days under Article 30 LSA).
  • Overtime Surcharges (Article 24): First 2 hours of overtime: **134% (1.34× hourly wage)**; subsequent hours: **167% (1.67× hourly wage)**; rest day work: **234% to 267%** of regular hourly pay.

Annual Vacation (LSA Article 38 Tiered Schedule) & Maternity

Tiered Annual Leave (LSA Article 38)

  • 6 Months Service: 3 working days paid vacation.
  • 1 Year Service: 7 working days paid vacation.
  • 2 Years Service: 10 working days paid vacation.
  • 3 to 4 Years Service: 14 working days; 5–9 yrs: **15 days**; increasing by +1 day/yr up to a maximum of **30 working days**.
  • Public Holidays: ~12 to 14 official national public holidays (including Lunar New Year).
  • Maternity Leave: 8 weeks (56 calendar days) fully paid maternity leave.

Labor Insurance (8.4% Er), NHI Health (3.1% Er) & 6% Labor Pension

Statutory Scheme Employer Share Employee Share Description
Labor Insurance (LI) 8.40% (capped base) 2.40% (capped base) Old-age, disability, maternity & injury (capped at NT$ 45,800/mo)
National Health Insurance (NHI) ~3.10% (x1.57 dependent factor) 1.55% Universal health insurance (5.17% total premium)
Labor Pension (Labor Pension Act) 6.00% 0.00%–6.00% (voluntary) Mandatory individual retirement pension account
Employment Insurance (EI) 0.70% 0.20% Unemployment protection fund
Total Statutory Contributions ~18.20%–20.00% ~4.15% Total monthly social insurance burden

Personal Income Tax: Progressive rates: 5% (up to NT$ 590k), 12% (NT$ 590k–1.33M), 20% (NT$ 1.33M–2.66M), 30% (NT$ 2.66M–4.98M), and 40% on excess, remitted to the National Taxation Bureau.

Why Use an Employer of Record (EOR) in Taiwan

  • Scale Semiconductor & Hardware Engineering Teams: Onboard IC design engineers, firmware developers, and supply chain managers in Taipei or Hsinchu in days.
  • Labor Insurance, NHI & 6% Pension Automated Compliance: Seamless electronic management of statutory social insurance and pension funds.
  • Taiwan Gold Card Visa Sponsorship: EOR assists top international tech talent in securing Taiwan Employment Gold Cards.

Hiring in Taiwan? Key Resources

Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:

How EOR Services Work

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