Taiwan (TW)
A safe, democratic, tech-forward island with excellent public healthcare, dense transit, world-class food culture, and a strong base for East Asia.
Employment Rights
Sick leave, dismissal protection and red flags in Taiwan.
Taiwan’s Labour Standards Act (勞動基準法 — LSA) provides core protections on wages, working time, leave and termination. Foreign employees with valid work permits are generally covered. Minimum wage: TWD 29,500/month and TWD 196/hour from 1 January 2026 (10th consecutive annual increase, +3.18% from TWD 28,590 in 2025 — Minimum Wage Act). Disputes: file mediation at the City/County Labour Affairs Bureau (勞動局) or use Labour Hotline 1955 (free). The Labour Court (勞動法院) handles formal adjudication. Key mandatory deductions: Labour Insurance (勞保), National Health Insurance (全民健保), and Labour Pension (勞退 — employer contributes minimum 6% of monthly salary to individual account).
Sick leave
Rules: LSA Article 43: ordinary sick leave (普通傷病假) up to 30 days/year at half pay. Hospitalisation leave (住院假): full pay for first 30 days of each hospitalisation episode; half pay up to 1 year total. Pregnancy check-up leave (產檢假): 7 paid days during pregnancy. Family care leave (家庭照顧假): up to 7 days/year deducted from sick leave balance. Medical certificate required from day 1 of paid sick leave in most employer policies.
Doctor note: 1 — employers require a clinic or hospital certificate from the first day for paid sick leave.
Employer pay: Ordinary sick leave: half pay (50% of salary). Hospitalisation: full pay first 30 days, half pay days 31–365. Labour Insurance ordinary injury/sickness benefit: 70% of average insured daily wage starting day 4 (3-day employer waiting period). Occupational injury/illness: full pay throughout treatment under Labour Insurance.
Long-term: Labour Insurance ordinary sickness benefit: 70% of average insured daily wage from day 4 onwards; maximum 6 months per episode. Occupational injury benefit: full pay with no waiting period. Long-term disability: Labour Insurance disability pension or lump sum depending on assessed disability grade.
Dismissal protection
Law: Labour Standards Act termination grounds and severance rules apply. Work-permit sponsorship creates extra immigration risk if employment ends.
Deadline to sue: Wage claims: 5-year statute of limitations under Civil Code, but labour bureau mediation leverage fades fast — file within 30 days of the dispute for best outcome. Unlawful dismissal: file mediation at city Labour Bureau (勞動局) or use Labour Hotline 1955 (free, Chinese/English); resolution usually within 30 days. Severance pay for dismissal without cause: 0.5 months of average wages per year of service (capped at 6 months, under Labour Standards Act new system). Work permit ends immediately on termination — inform NIA of employer change within 30 days.
Probation
Probation is common, often 3 months, but Taiwan law does not let employers ignore basic termination and wage rules during probation.
Notice periods
Employer advance notice generally scales with service: 10 days after 3 months-1 year, 20 days after 1-3 years, 30 days after 3+ years, or pay in lieu.
Working time
Max hours: Standard 8 hours/day and 40 hours/week, with overtime limits and rest-day rules.
Min rest: Regular day off and rest day rules apply; shift rest rules depend on sector.
Overtime: LSA overtime pay rates: first 2 hours OT = 4/3 regular hourly rate (133%); hours 3–4 = 5/3 (167%). Working on scheduled rest day (休息日): first 2 hours at 4/3, subsequent hours at 5/3; minimum 4 hours counted regardless of actual time worked. Statutory holiday (例假) work: 2× pay plus a compensatory day off. Monthly overtime cap: 46 hours; bimonthly cap: 100 hours. Compensatory time-off (補休) in lieu of cash overtime is permitted if both parties agree in writing. Semiconductor and tech companies commonly apply comp-time — legally valid only with written agreement. Keep your own calendar record of overtime hours.
Vacation
LSA Article 38 annual leave schedule: 3 days (after 6 months); 7 days (after 1 year); 10 days (after 2 years); 14 days (after 3 years); 15 days (after 5 years); +1 day per additional year from year 6, up to a maximum of 30 days (year 25+). Unused statutory leave must be paid out in cash or carried forward — employers cannot forfeit it unilaterally. Many professional employers offer 10–15 days from year 1 in contracts above the statutory minimum. Annual leave starts accruing on the employment anniversary date, not January 1.
Anti-discrimination
Employment discrimination based on race, class, language, thought, religion, party, birthplace, gender, age, marital status, appearance, disability and union membership is restricted; sexual harassment rules apply.
Contract red flags
- !Employer asks you to work before work permit approval.
- !Salary below work-permit threshold promised off-books.
- !Blank resignation letter requested.
- !Passport or ARC held by employer.
- !Overtime included with no cap or records.
- !Non-compete with broad scope and no compensation.
- !Teaching job misclassified as contractor.
- !Employer refuses payslips or labour/NHI enrollment.
- !Salary below TWD 29,500/month or TWD 196/hour (minimum wage from 1 January 2026, Minimum Wage Act; fines up to TWD 1,500,000 for violations)
- !Labour Pension contribution (勞退) below 6% of monthly salary — employer must contribute minimum 6% to your individual portable pension account (勞退帳戶); verify at labour.gov.tw.
Employment Rights
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