China Taiwan
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Currency: - TWD
Taiwan Labor Law and Employment Policy Overview
Employment Law Overview
- Key Laws and Regulations:
- Labor Standards Act
- Occupational Safety and Health Act
- Employment Service Act
- Legal Characteristics:
- Aims to protect employee rights, promote employment stability, and ensure workplace safety.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include terms on job duties, compensation, working hours, benefits, etc.
- Language and Currency:
- Contracts must be in Chinese, and the currency unit is New Taiwan Dollar (TWD).
Working Hours Regulations
- Standard Working Hours:
- 8 hours/day, 40 hours/week
- Rest Days and Breaks:
- At least 1 rest day per week
- At least 30 minutes break after 6 hours of daily work
Leave Policies
- Annual Leave:
- 6 months to less than 1 year of service: 3 days
- 1 year of service: 7 days
- 2 years of service: 10 days
- 3 years of service: 14 days
- 5 years of service: 15 days
- 10 years of service: 1 additional day per year, up to 30 days
- Public Holidays:
- 13 statutory public holidays
- Special Leaves:
- Sick leave: 30 days per year, paid at 50% of regular wages
- Maternity leave: 8 weeks, paid at 100% of wages
- Paternity leave: 7 days, paid at 100% of wages
- Childcare leave: Up to 2 years before the child turns 3, paid at 60% of wages
Employee Severance and Contract Termination
- Notice Period:
- 3 months to 1 year of employment: 10 days
- 1-3 years of employment: 20 days
- Over 3 years of employment: 30 days
- Severance Pay:
- Typically 50% of average monthly salary for each year of service, up to 6 months' salary
- Unfair Dismissal Protection:
- Employers must prove fair reasons for dismissal, or employees may be entitled to compensation.
Tax Laws
- Personal Income Tax:
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Salary Range (TWD) Tax Rate 0 - 560,000 5% 560,001 – 1,260,000 12% 1,260,001 – 2,520,000 20% 2,520,001 – 4,720,000 30% 4,720,001 and above 40%
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- Social Insurance Contributions:
- Labor Insurance: 8.4%
- Labor Insurance-Occupational Accident: 0.2%
- Labor Insurance-Wage Fund: 0.7%
- Health Insurance: 3.1%
- Pension NHI: 6%
- Second-tier National Health Insurance: 2.11%
Health Insurance
- Insurance Policy:
- All employees must participate in the National Health Insurance (NHI).
- Insurance Coverage:
- Medical, dental, maternity, and other healthcare services.
Compensation and Benefits
- Minimum Wage:
- 26,400 TWD/month
- Compensation Structure:
- Typically includes base salary, bonuses, allowances, etc.
Work Permits and Visas
- Permit Requirements:
- Foreign nationals require a work permit or visa.
- Application Process:
- Employers apply for work permits with the Ministry of Labor.
- Foreign nationals apply for visas with Taiwan's overseas representative offices.
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Taiwan.
- Common Provisions:
- Restrict employees from using or disclosing the employer's confidential information after leaving employment.
- Restrict employees from working for competitors after leaving employment.
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills enhancement training.
- Government Support:
- Government provides training subsidies and programs.
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on factors such as gender, race, religion, etc.
- Enforcement Measures:
- Employers must establish anti-discrimination policies and procedures.
Remote Work Policies
- Legal Framework:
- Work-from-Home Act passed in 2023, supporting remote work.
- Tax and Insurance Implications:
- Tax and social insurance implications of remote work depend on specific circumstances.
Authoritative Website Addresses
- Ministry of Labor: https://www.mol.gov.tw/