How to Hire Staff in Taiwan


How to Hire Staff in Taiwan With Embark

Our staff are experts in fields ranging from operations, payroll, accounting, and more. Learn what you need to expand your business and hire staff in Taiwan.

Photo by Timo Volz

Introducing Taiwan

Taiwan, is an island in East Asia in the Western Pacific Ocean covering a total area of 36,193 square kilometers. Taiwan is also known for its friendly locals and for being a city that is culturally diverse and open-minded.

Capital City - Taipei City

Currency - New Taiwan dollar ($, NT$, TWD)

Languages Spoken - Mandarin

Population Size - 24 Million (2021)

Time Zone - GMT +08:00

GDP - USD 850 Brillion (2021)

Employee Classification

Employees can be majorly divided into two categories –  Contractors and Employees and defining relation with the employee is very important to avoid risks associated with misclassification.

The courts in India have applied the control and integration test to determine whether a person can be classified as an employee or independent contractor. The prima facie test is the control test to determine whether an employer-employee relationship exists and it is not merely to direct the nature of work that has to be carried out but also to control the manner in which it is done.

Another difference between an employer and contractors is an employer is required to withhold tax at the time of payment of salary to employees. The salary paid to an employee may include benefits and allowances that the employee is entitled to, which is beneficial to the employee from a tax perspective. However, with respect to independent contractors, the employer must withhold the applicable taxes; however, the amount paid may not be in the form of salary, but as professional fees for services performed. In both these cases, the employee and independent contractor/s will be required to file their income tax returns as prescribed under law.

Hiring Structure in Taiwan

Payroll Cycle

The payroll cycle in Taiwan is generally monthly, and payments are usually paid on the 15th of each month.

Public Holidays



Jan. 1st

New Year’s Day

Jan 29th to Feb 6th

Chinese New Year

Feb 28th

Peace Memorial Day

April 4th

Children’s Day

April 5th

Qingming Festival

May 2nd

Labour Day

Jun 3rd

Dragon Boat Festival

Sep. 10th

Mid-Autumn Festival

Oct. 10th

National Day



Feb 15th

Lantern Festival

Mar 4th

Earth God’s Birthday

Mar 8th

International Women’s Day

May 4th

Literary Day

May 8th

Mother’s Day

Aug 8th

Father’s Day

Aug 12th

Hungry Ghost Festival

Sep 3rd

Armed Forces Day

Oct 21st

Overseas Chinese Day

Oct 31st


Nov 8th

Saisiat Festival

Dec 22nd

Dōngzhì Festival

Dec 25th

Christmas Day

Benefits & Health Insurance

As you outline a Taiwan benefit management plan, you must include the statutory minimums concerning time off, maternity and paternity leave, health insurance, and similar facets. Taiwan has nine public holidays during which employees receive the day off. All employees also receive paid annual leave based on their number of years of service with the company.

Personal Income Tax

An employer is required to deduct and withhold income tax from employees. The employer is liable to administer the payment to the tax office for taxes withheld from employees before the 10th day of the following month.

Individual income tax (IIT) is levied on Taiwan-sourced income of both resident and non-resident individuals, unless exempt under the provisions of the Income Tax Act and other laws.

Taxable Income (TWD)

Tax Rate (%)

Over 0 to 560,000


Over 560,001 to 1,260,000


Over 1,260,001 to 2,520,000


Over 2,520,001 to 4,720,000


Over 4,720,001


Employment Termination

The LSA is Taiwan’s primary source of employment law, as such it gives both parties rights and provides guidelines on how the parties are to conduct themselves in the employment relationship. 

An employer may not dismiss an employee without good cause. Whether the employer is required to give advance notice when terminating the employment relationship will depend on what reason the employer gives. The employee’s service years will determine the required advance notice period. 

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