Cost to Hire an Employee in Taiwan (2026)

• Gross salary.
• Employer costs of about 16.8% at a NT$840,000 salary: NT$140,819 a year, of which the largest is labour pension (employer).
• An EOR fee, if you hire without your own entity. The providers in our Taiwan guide publish starting prices of US$199–699 per employee per month; see how to choose an EOR in Taiwan for the shortlist.

Mandatory employer costs at a NT$840,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer contributions: Pension 6%, labour and employment insurance 8.75%, health insurance about 4.8%, plus occupational accident insurance, each on a capped insured salary
• Insured salary caps: Labour insurance NT$45,800, accident insurance NT$72,800, pension NT$150,000, health insurance NT$313,000 a month
• Minimum wage: NT$29,500 / month or NT$196 / hour from 1 Jan 2026
• Annual leave: 3 days after 6 months, rising to 15 after 5 years and up to 30
• Normal working hours: 8 hours a day, 40 a week
• Severance (pension system since 2005): Half a month's average wage per year, capped at 6 months

• Year-end bonus (optional) (8.333% of gross): Not required by law; shown at one month's salary if you choose to pay one.
• 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.

Without your own entity in Taiwan, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Taiwanese entity. See the comparison in our Taiwan guide and EOR vs local entity.