Employer of Record in Taiwan: 2026 Cost and Compliance Guide

Taiwan's employment rules are national, under the Labor Standards Act, with a national minimum wage of NT$29,500 a month from 2026. Employer costs come from four schemes, each charged on its own capped insured salary: the 6% labour pension, labour and employment insurance, occupational accident insurance and national health insurance.

An Employer of Record (EOR) can employ your team under Taiwanese law, enrolling them with the Bureau of Labor Insurance and the National Health Insurance Administration and running payroll, without you forming a Taiwanese company.

The Act regulates labour dispatch directly. A worker employed by one business who works under another's supervision is a dispatched worker, must have an indefinite contract with the dispatching business, and, if the client interviews or picks them before they are hired, can ask to be employed by the client instead. This guide covers costs, rules, providers and when to set up your own entity. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in Taiwan employs staff for foreign companies. It signs the Taiwanese labour contract, enrols the employee in labour, employment, occupational accident and national health insurance, pays the 6% labour pension contribution, withholds income tax, and handles leave and termination under the Labor Standards Act.

The Act defines a dispatched worker as one employed by a dispatching entity who actually works for a dispatch-requiring entity, which supervises and manages their work (art. 2). An EOR hire who works under your direction fits that description, so the dispatch rules can apply to you as the client.

Those rules matter most at hiring. The client may not interview or otherwise pick a specific dispatched worker before the dispatching entity signs their contract (art. 17-1). Ask each provider how its model fits these rules, and how you choose the person without breaching them.

New to EORs? Our guide to what an Employer of Record is answers the 30 most common questions, from who the legal employer is to what happens if a provider fails.

Under article 17-1 of the Labor Standards Act, a dispatch-requiring entity may not interview a dispatched worker or otherwise appoint a specific worker before the dispatching entity and the worker sign a labour contract.

If it does and then receives the worker's services, the worker may, within 90 days of starting, say in writing that they want a labour contract with the client. The client must negotiate within 10 days; if it doesn't, or the negotiation fails, a contract with the client is formed from the next day on the conditions the worker had while working there, and the worker's contract with the dispatching entity is deemed terminated, with severance or pension paid by the dispatching entity. Neither entity may dismiss, demote or otherwise penalise the worker for asking.

Other rules make the client share liability. A dispatching entity's contract with a dispatched worker must be indefinite (art. 9). If the dispatching entity fails to pay wages after being fined or ordered to, the worker can ask the client to pay within 30 days (art. 22-1). And the two are jointly and severally liable for compensation if the worker suffers an occupational accident (art. 63-1).

Questions to ask a provider

Taiwanese employment cost has three layers: gross salary, employer contributions (labour pension, labour and employment insurance, occupational accident insurance and national health insurance) and the EOR fee.

Each scheme has its own cap: labour insurance stops at an insured salary of NT$45,800 a month, so its share falls quickly as pay rises, while the pension is capped at NT$150,000 and health insurance at NT$313,000.

Annual cost at example salaries

What these figures include and exclude

• Each premium is charged on an insured salary taken from an official grading table, not the exact salary, so real amounts differ slightly from the percentages above.
• Foreign employees without permanent residence (or a Taiwanese spouse) aren't covered by the Labor Pension Act's 6% scheme or by employment insurance; ask how the provider handles their retirement and severance entitlements under the Labor Standards Act. Foreigners with a resident certificate and a regular employer are covered by national health insurance.
• Overtime on a working day is paid at at least an extra one third of the hourly rate for the first 2 hours and an extra two thirds after that; work on a holiday is paid at double. These premiums are not included above.
• Employee contributions (20% of the labour and employment insurance premiums and 30% of the health insurance premium) and income tax are deducted from pay and are not employer costs.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Taiwan.

Taiwanese employment is governed by the Labor Standards Act, with pensions under the Labor Pension Act and insurance under the Labor Insurance, Employment Insurance and National Health Insurance Acts.

Dispatched workers (EOR relevance)

A client may not interview or otherwise pick a specific dispatched worker before the dispatching entity hires them. If it does, the worker can ask within 90 days to be employed by the client, and a contract is formed if the client doesn't agree terms within 10 days. Dispatched workers must have indefinite contracts.[1]

Labor Standards Act arts. 9 and 17-1. The client must pay wages the dispatching entity fails to pay after being fined or ordered to (art. 22-1), and both are jointly liable for occupational accident compensation (art. 63-1).

Employment contracts

Contracts for continuous work must be indefinite; fixed-term contracts are allowed only for temporary, short-term, seasonal or specific work. A fixed-term contract becomes indefinite if the employee keeps working without objection, or if renewals together exceed 90 days with gaps of 30 days or less.[1]

Labor Standards Act art. 9.

Notice periods

An employer terminating on an economic or performance ground must give at least 10 days' notice after 3 months' service, 20 days after 1 year and 30 days after 3 years, or pay wages instead. During notice the employee may take up to 2 paid days a week to look for work.[1]

Labor Standards Act art. 16. An employer may terminate with notice only on the grounds in art. 11: business suspension or transfer, losses or contraction, force majeure suspending business for over a month, a change in the business with no suitable other post, or the employee clearly being unable to do the job.

Severance pay

For employees under the Labor Pension Act's pension system, severance on termination under article 11 is half a month's average wage for each year of service, pro rata for part years, capped at 6 months' average wage, and paid within 30 days.[2]

Labor Pension Act art. 12. Employees who stayed under the Labor Standards Act's older pension system get one month's average wage per year of service instead (Labor Standards Act art. 17).

Working time

Normal hours may not exceed 8 a day and 40 a week, with two days off every seven. Overtime needs union or labour-management conference consent and is capped at 12 hours a day in total and 46 hours a month (54 a month and 138 a quarter with consent).[1]

Labor Standards Act arts. 30, 32 and 36. Overtime is paid at at least an extra one third of the hourly rate for the first 2 hours and an extra two thirds for the next 2 (art. 24).

Annual leave

Paid annual leave of 3 days after 6 months' service, 7 days after 1 year, 10 after 2, 14 after 3, 15 after 5, and one more day for each year over 10, up to 30. Untaken leave is paid out at the end of the year or of employment.[1]

Labor Standards Act art. 38.

Public holidays

Paid leave on the national holidays, holidays and Labour Day designated by the Ministry of the Interior, and holidays designated by other central competent authorities. Work on a holiday, with the employee's consent, is paid at double.[1]

Labor Standards Act arts. 37 and 39.

Maternity and paternity leave

8 weeks' maternity leave, on full pay after 6 months' service (half pay before that). 7 days' paid pregnancy checkup leave, and 7 days' paid leave for a partner to attend checkups and the birth.[12]

Labor Standards Act art. 50; Gender Equality in Employment Act art. 15.

Foreign employees

Employing a foreigner needs an employment permit, and white-collar hiring is limited to categories such as professional or technical work and senior managers of foreign-invested businesses. Permits for those categories last up to 3 years and can be extended.[13]

Employment Service Act arts. 43, 46 and 52.

How Taiwan compares

• EOR pricing in Taiwan and other countries: Lowest published provider fee, employer costs and the monthly total.
• Employer social security: how Taiwan compares: Every mandatory employer contribution, with rates and ceilings.
• Severance pay: how Taiwan compares: What the law requires an employer to pay when employment ends.
• Notice periods: how Taiwan compares: Minimum employer notice, and how it grows with service.
• Minimum wage: how Taiwan compares: Official rates, annual equivalents and a US-dollar comparison.
• Annual leave: how Taiwan compares: Statutory minimum leave and public holidays, country by country.
• Employer pension contributions by country: Rates, earnings ceilings and scheduled increases.
• EOR labour hire rules by country: Where an EOR falls under staff-leasing licences or time limits.

These EOR providers publish a page about employing in Taiwan. Prices are their own published starting rates in USD; we haven't checked whether any of them charges more in Taiwan.

Also ask how the provider's model fits the dispatched-worker rules, whether it can obtain employment permits for foreign hires, and how it handles a year-end bonus in payroll.

Compare providers for Taiwan

• RemoFirst vs PlayrollIn Taiwan: US$199 vs US$399 a month (published starting prices).
• Globalization Partners vs RemoFirstIn Taiwan: US$599 vs US$199 a month (published starting prices).
• Remote vs Globalization PartnersIn Taiwan: US$599 vs US$599 a month (published starting prices).
• RemoFirst vs Atlas HXMIn Taiwan: US$199 vs US$599 a month (published starting prices).

For Taiwan-specific selection criteria and a shortlist, see best EOR providers in Taiwan. For each provider's products and pricing model, see the provider directory.

Setting up your own presence means a Taiwanese company or a branch of your foreign company. Your entity then employs directly, so the dispatched-worker rules don't apply, and it can apply for employment permits for foreign staff.

Running costs include accounting, tax filings, payroll and the insurance and pension enrolments above.

What a team costs through an EOR

Annual cost of a team of mid-level professionals on NT$840,000 each, with statutory employer costs from our cost model and an EOR fee of NT$19,087 per employee per month (a common published starting price of US$599). Providers may price differently for larger teams, so ask for a quote. US-dollar amounts use the US Treasury rate of 31.864 TWD per US$1 (30 September 2026).

The salaries and employer costs are the same whoever employs the team. The difference is the EOR fees: NT$1,145,220 a year for 5 employees, NT$5,726,100 a year for 25 employees and NT$11,452,200 a year for 50 employees. A Taiwanese entity becomes cheaper once running it, including payroll, costs less than that.

Work out your own break-even with the EOR vs entity calculator, or see the step-by-step method in EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree a monthly salary, any year-end bonus, and leave above the statutory minimum.

2. 2

   Check how the person will be chosen

   Before you interview anyone, ask the provider how its model fits article 17-1 of the Labor Standards Act.

3. 3

   Compare itemised quotes1–3 days

   Request Taiwan quotes covering the fee, deposit, each insurance and the pension, severance, employment permits for foreign hires, and offboarding. Use the estimator to sanity-check totals.

4. 4

   Contract and onboardingDepends on the provider and permits

   The EOR issues a Taiwanese labour contract and enrols the employee in labour, accident and health insurance and the labour pension. Foreign hires need an employment permit before they start.

5. 5

   Ongoing administrationMonthly

   Monthly payroll, insurance premiums and pension contributions, and income tax withholding.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Labor Standards Act (English, amended 2024-07-31)

   Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

   Arts. 2 and 9 (dispatched workers, contracts), 11 and 16 (termination and notice), 17 (old-system severance), 17-1, 22-1 and 63-1 (dispatch), 24, 30, 32 and 36 (hours and overtime), 37–39 (holidays and annual leave), 50 (maternity leave).

2. 2
   Labor Pension Act (English, amended 2019-05-15)

   Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

   Art. 7 (who is covered), art. 12 (severance of half a month per year, capped at 6 months), art. 14 (employer contribution of at least 6%).

3. 3
   勞工退休金月提繳分級表 (monthly contribution wage table), effective 1 January 2026

   Bureau of Labor Insurance, Ministry of Labor

   Grade 62: NT$147,901 and above, contribution wage NT$150,000.

4. 4
   勞保、就保、災保保險費試算 (premium calculator and rate history)

   Bureau of Labor Insurance, Ministry of Labor

   Ordinary labour insurance rate 11.5% from 1 January 2025 and employment insurance 1%; labour and employment insurance salary grades up to NT$45,800; occupational accident insurance grades up to NT$72,800, with rates set by industry.

5. 5
   Labor Insurance Act (English, amended 2026-01-21)

   Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

   Art. 13 (ordinary rate schedule rising to 13%), art. 15 (employer pays 70% of the ordinary premium for employees).

6. 6
   勞工保險的普通事故保險費率是多少？

   Ministry of Labor

   The rate for 2026 (year 115) is 12.5%, of which 1% is employment insurance (page updated 17 March 2026).

7. 7
   Employment Insurance Act (English)

   Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

   Art. 5: employment insurance covers Taiwanese nationals and foreign spouses of nationals with residency.

8. 8
   National Health Insurance Act (English, amended 2023-06-28)

   Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

   Art. 9 (foreign residents with a regular employer are covered), art. 18 (premium on the insured amount, rate capped at 6%), art. 27 (private employers pay 60%).

9. 9
   衛生福利部全民健康保險會第7屆115年第1次委員會議議事錄 (21 January 2026)

   National Health Insurance Committee, Ministry of Health and Welfare

   The Executive Yuan approved on 31 December 2025 keeping the 2026 general premium rate at 5.17%; the average number of dependants of 0.56 has applied since 1 January 2024.

10. 10
    114年1月衛生福利部新實施攸關民眾權益之重大政策或措施填報表

    Ministry of Health and Welfare

    From January 2025, the top grade of the insured amount table rose from NT$219,500 to NT$313,000.

11. 11
    最低工資連十漲：自115年1月1日起每月最低工資29,500元、每小時196元

    Ministry of Labor

    Monthly minimum wage NT$29,500 and hourly NT$196 from 1 January 2026.

12. 12
    Gender Equality in Employment Act (English, amended 2023-08-16)

    Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

    Art. 15: 8 weeks' maternity leave, 7 days' pregnancy checkup leave, 7 days' checkup accompaniment and paternity leave, paid.

13. 13
    Employment Service Act (English, amended 2025-01-20)

    Laws & Regulations Database of the Republic of China (Taiwan), Ministry of Justice

    Art. 43 (employment permit needed), art. 46 (permitted categories), art. 52 (permits for up to 3 years, extendable).

Taiwan's employer contributions add about 17% to a NT$70,000 monthly salary, spread across four capped schemes, and severance under the current pension system is limited to 6 months' pay.

The rule to raise with every provider is article 17-1: if you interview or pick your hire before the provider employs them, they can ask to be employed by you. Agree how the person will be chosen before you start recruiting.

For a growing team, compare against your own entity with our EOR vs local entity guide, and see Japan, South Korea and Hong Kong for other East Asian markets.