Employment taxes

• Income tax is progressive, ranging from 5 to 40%, depending on income brackets.
• Taiwan uses a withholding system, meaning your employer deducts taxes monthly.
• Employees also contribute to:
  - Labor insurance (0.2-1.2% of salary, depending on risk category)
  - Health insurance (approx. 1.91% of salary)
  - Employment insurance (0.2%)
• Foreigners who reside under 183 days are taxed at a flat 18% on employment income.

Leave policy

• Annual leave: 3-30 days depending on years of service (minimum 3 days after 6 months).
• Public holidays: Around 16 per year.
• Sick leave: Up to 30 days per year with partial pay at 50%, covered by the employer.
• Maternity leave: 8 weeks fully covered by the employer. If the employee has been in the company less than 6 months, the payment is at 50% of the base salary.
• Paternity leave: 5 days paid at 100% by the employer.
• Parental leave: Up to 2 years of unpaid parental leave per child.

Employment termination

• Termination in Taiwan must follow clear legal grounds, such as misconduct, business restructuring, inability to perform the job, or operational needs.
• Notice period depends on tenure. Usually, 10 days for those employed between 3 months and 1 year, 20 days for 1–3 years, and 30 days for more than 3 years of service.
• Severance pay: One month of average wages for every year of service under the old system or half a month per year under the new Labor Standards Act system.

Hiring and contracts

• Contracts can be fixed-term or permanent.
• Must be in Chinese or bilingual, with the Chinese version usually taking priority.
• Contract should include: job title & duties, salary & benefits, working hours, leave entitlements, termination rules
• Probation period: Commonly 3 months.

Payroll and salary payment

• Payroll is generally paid monthly.
• Currency: New Taiwan Dollar (TWD).
• Minimum wage: TWD 27,470 per month.
• Payslips are mandatory, and should include: Gross salary, deductions (tax, labor insurance, health insurance), net salary, working hours and overtime (if any).

Benefits

Mandatory:

• National Health Insurance (NHI)
• Labor Insurance
• Pension contributions

Optional:

• Meal allowances
• Transport reimbursement
• Bonuses (common in tech and manufacturing)
• Wellness perks
• Training budgets
• Additional insurance plans

Monthly living cost (Taipei Edition)

• Rent (city center): TWD 20,000-35,000 (€580-€1,010 / $630-$1,100)
• Utilities: TWD 2,000 (€58 / $63)
• Internet: TWD 600 (€17 / $19)
• Groceries: TWD 8,000-10,000 (€230-€290 / $250-$315)
• Public transport monthly pass: TWD 1,280 (€37 / $40)
• Coffee / dining out: TWD 150-400 (€4-€12 / $5-$13) per meal, TWD 100-180 (€3-€5 / $3-$6) for coffee

Taipei is the most expensive city, other regions are significantly cheaper.

How to get a local ID number

• Employees receive a Unified ID Number when they get their ARC (Alien Resident Certificate).
• Remote workers on visas can also apply for an ARC depending on their visa type (e.g., Gold Card).
• You apply through the National Immigration Agency after obtaining a work permit.

Social security registration

• Your employer registers you for:
  - National Health Insurance (NHI)
  - Labor Insurance
  - Pension Fund (Labor Pension Act)
• Coverage starts once your employment begins.

Banking

Opening a bank account is straightforward once you have your ARC.

Popular banks include:

• Bank of Taiwan
• CTBC Bank
• Taishin International Bank
• Mega Bank
• Taipei Fubon Bank

Most banks offer English-friendly mobile apps and debit cards.

Housing and rental process

• Most rentals require: 1-2 months’ deposit and the first month’s rent upfront
• Lease contracts often run 12 months.
• Apartments may be furnished or unfurnished, but furnished is common in Taipei.
• Tenant rights:
  - Landlords must give notice for major changes.
  - Rent increases are regulated.
  - Deposits must be returned if no damage is found at move-out.

Healthcare system

• Taiwan’s National Health Insurance is famously efficient and affordable.
• You can visit clinics and hospitals easily, and appointment processes are simple.
• Co-pays are low, and coverage is broad (dentistry, prescriptions, hospital care, etc.).

Driving and public transport

• Public transport is clean, affordable, and extremely reliable.
• Taipei MRT is one of the best metro systems in Asia.
• Buses and trains connect the entire island.
• You can use an International Driving Permit before converting to a Taiwanese license.
• Scooter culture is huge, many residents prefer scooters for convenience.

Emergency and important contacts

• Police: 110
• Ambulance/Fire: 119

Work permit and visa requirements

• Foreign nationals need resident visa to work and live in Taiwan.
• Your employeer acts as sponsor and initiates the application for the work permit.
• After obtaining the work permit, you apply for the Resident Visa at the nearest Taiwan Representative Office.
• Upon arrival in Taiwan you must apply for the Alien Resident Certificate (ARC) within 15 days.
• Processing time: 1-2 months in total.

Business culture and work norms

• Respect, politeness, and harmony are core values.
• Hierarchy exists, but workplaces are becoming more modern and international.
• Teamwork is important.
• Punctuality matters.
• Work-life balance is improving, especially in tech and international companies.