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Payroll in Taiwan: Getting Compliance Right

Payroll in Taiwan: Getting Compliance Right

Administering payroll in Taiwan requires a comprehensive understanding of the nation’s labour laws, taxation framework, and statutory contribution system. Taiwan follows a monthly payroll cycle, with salaries typically disbursed on or before the 15th of the following month. Although a 13th-month salary is not mandatory, it is customary for employers to offer it during major local festivals such as the Lunar New Year.

The statutory minimum monthly wage is TWD 28,590 (or TWD 190 per hour) and is reviewed periodically by the Ministry of Labour. Employers must comply with these wage standards and ensure that employment contracts specify remuneration, benefits, working hours, and entitlements with transparency and precision.

Employer contributions amount to approximately 21.83% of an employee’s salary, encompassing labour insurance, employment insurance, national health insurance, the labour pension fund, and workers’ compensation. Employees contribute around 4.65%, deducted directly from their monthly pay. Income tax is charged at progressive rates of 5% to 40% for residents, while non-residents are taxed at a flat rate of 18%. All taxes and social insurance payments must be remitted promptly to the relevant authorities.

Standard working hours are limited to eight per day and forty per week, with a maximum of twelve hours including overtime. Employers are obliged to provide two rest days per week and compensate overtime at enhanced rates. Leave provisions, maternity and paternity benefits, and occupational protections are all regulated under the Labour Standards Act.

Effective payroll in Taiwan underpins compliance, financial accuracy, and employee trust. For overseas companies establishing a presence in the market, engaging a professional payroll partner ensures precision and regulatory alignment.

Also read our guide: Comprehensive Checklist on Employment in Taiwan

Galaxy Group delivers comprehensive payroll and statutory management solutions, supporting organisations to operate confidently and compliantly within Taiwan’s evolving employment landscape.

Simplify Payroll. Strengthen Compliance.

Manage payroll in Taiwan accurately and confidently with Galaxy Group.

FAQ’S

What are the key components of payroll in Taiwan?

Payroll in Taiwan includes income tax withholding, labour insurance, employment insurance, national health insurance, and pension contributions.

The Ministry of Labour reviews and adjusts Taiwan’s minimum wage regularly. Employers must keep up with these updates to remain compliant.

Yes. Partnering with a local payroll provider or Employer of Record (EOR) like Galaxy Group allows compliant payroll management without opening a Taiwan office.

Accurate payroll ensures legal compliance, prevents penalties, and strengthens trust with employees — key to long-term business success in Taiwan.

Hiring Foreign Talent in Taiwan

Hiring Foreign Talent in Taiwan

Planning to hire foreign talent in Taiwan? This video is your all-in-one guide to understanding the Taiwan work permit ,employment in Taiwan and visa process from an employer’s perspective. As Taiwan’s economy continues to grow and diversify, more companies are turning to international professionals to meet their talent needs – especially in areas like technology, education, healthcare, and engineering. However, hiring foreign nationals in Taiwan involves a structured legal framework, and it’s essential for employers to understand each step of the work visa Taiwan process to avoid delays, penalties, or rejections.

In this video, we’ll walk you through the entire Taiwan job hiring process – from preparing the correct documentation to applying for a work permit through Taiwan’s Ministry of Labor. We’ll explain the eligibility criteria for both employers and employees, the types of positions that qualify for foreign hires, and the documents required for submission. You’ll also learn about processing timelines, contract requirements, and best practices to ensure compliance with Taiwan’s employment laws, immigration regulations and tax compliance in Taiwan.

Beyond the standard work permit, you’ll be introduced to Taiwan’s special visa programs such as the Employment Gold Card. This program is designed to attract high-level international talent and offers multiple benefits, including a three-in-one permit for work, residence, and re-entry, along with tax incentives and family sponsorship options. Understanding these programs can give your business a competitive edge when it comes to attracting skilled professionals from around the world and strengthening your approach to employment in Taiwan, especially when managing a remote workforce in Taiwan or leveraging EOR in Taiwan support.

Whether you’re a startup looking to expand your team or a large organization bringing in specialized talent, this video will help you navigate the complex requirements of Taiwan job hiring with confidence. By following the proper procedures and staying informed, you can simplify your hiring process, maintain accurate payroll, and align with local standards such as minimum wage and average salary, ensuring a smooth transition for your foreign employees.

So, if you’re ready to take your hiring in Taiwan strategy global and tap into Taiwan’s vibrant talent market, reach out Galaxy Group and we can explain everything you’ll need to know about hiring expatriate workers legally and efficiently.

Simplify Hiring in Taiwan with Expert Support

Whether it’s work permits, visa applications, or full employment compliance—Galaxy Group is here to help you hire international talent with confidence.

FAQ’S

How do employers get a Taiwan work permit for hiring foreign professionals?

Employers must first register with the Ministry of Labor and verify that the job role qualifies for foreign hires. They must then submit a Taiwan work permit application through the Workforce Development Agency, including documents like the employment contract and proof of qualifications. Once approved, the foreign professional can apply for their work visa and Alien Resident Certificate (ARC). Following this process ensures legal and compliant employment in Taiwan.

Taiwan’s Employment Gold Card offers foreign professionals a 3-in-1 permit for work, residence, and re-entry, valid for up to 3 years. It also provides tax incentives, freedom to switch employers, and the ability to bring dependents. This program supports high-level talent seeking flexible and long-term employment in Taiwan with fewer bureaucratic restrictions.

Employers must pay salaries in New Taiwan Dollars, follow local payroll in Taiwan regulations, withhold taxes correctly, and ensure enrollment in labor and health insurance. Proper payroll handling is key to staying compliant with employment in Taiwan laws.