According to Velocity Global's employment agreement template, when is the salary due in Taiwan?

Employees in Taiwan, as per the employment agreement template, are paid on the last working day of each month.

What date does the law specify salary must be paid in Taiwan, Republic of China?

According to the Labor Standards Act of Taiwan, Republic of China, employers are required to pay their employees at least once a month. The payment must be made within five to seven days after the end of the pay period.

How is salary calculated and what components does it consist of in Taiwan, Republic of China?

In Taiwan, Republic of China, salary is calculated based on two main components:

• Basic pay
• Allowances (if any)

Is there a legal obligation to pay salaries in the same month in Taiwan, Republic of China?

In Taiwan, an employer is required by law to make at least two wage payments each month. If both parties have a special agreement or payment is made by month in advance, at least one payment still should be made each month.

How many salary payments are made per year in Taiwan, Republic of China?

In Taiwan, Republic of China, employees typically receive their salary payments on a monthly basis, resulting in 12 salary payments per year. Some employers offer a 13th-month salary; however, this practice is not mandated by law.

Is salary payment monthly and is payment standard at the end of the month in Taiwan, Republic of China?

Yes, the salary payment in Taiwan, Republic of China, is monthly, and the payment is standard at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Taiwan, Republic of China?

In Taiwan, the employment agreement typically specifies the salary in monthly base pay amounts.

What tax and social security obligations do employees have in Taiwan?

In Taiwan, Republic of China, both employers and employees have specific tax and social security obligations.

Tax Obligations:

• Income tax rates are progressive, ranging from 5% to 40%. These rates apply to both residents and non-residents based on their Taiwan-sourced income.

Employer Obligations:

• Employers are required to withhold income taxes on various types of compensation, including salary, stipends, wages, allowances, annuities, cash awards, bonuses, subsidies, retirement pay, severance pay, separation pay, resignation pay, life-time pensions, and old-age pensions, provided these are not covered by insurance benefits.

What are the details of the statutory bonuses and 13th/14th-month salary, including the local name and payment schedule?

Although it is not mandatory, in Taiwan, it is customary to give ‘13th/14th-month’ bonus of a month’s salary, normally paid around the time of the Lunar New Year.

Companies also give bonuses to managers at year-end. However, these are often decided by the senior management and are paid after first covering any losses incurred by the company.

What are the details of the customary bonuses, including the 13th or 14th-month salary, and when are these payments typically made in Taiwan?

In Taiwan, it is customary, though not legally required, for employers to provide bonuses during various festivals, including Lunar New Year, Dragon Boat Festival, and Moon Festival. Additionally, the 13th or 14th-month salary is commonly offered in Taiwan. Although not statutory, these additional salary payments are typically made in December, January, or February.

What is the minimum wage information in Taiwan?

Effective January 1, 2026, the minimum wage in Taiwan will see an increase. The monthly minimum wage will be NT 29,500, while the hourly minimum wage will rise to NT 196.