Employer of record services in Taiwan

Yes. We manage Labor Insurance, National Health Insurance, and Labor Pension contributions, the latter requiring a mandatory 6% employer contribution into each employee’s individual pension account under the Labor Pension Act. We also manage income tax withholding and apply the correct rules depending on whether an employee has elected the ‘old’ or ‘new’ pension and severance system.

Beyond the mandatory 6% pension contribution, competitive Taiwanese employers add group insurance, meal allowances, and year-end bonuses, which are a very strong cultural expectation around Lunar New Year even though not strictly mandated by law. Taiwan’s globally significant semiconductor and tech sector also makes technical career development a key differentiator.

Notice periods range from 10 to 30 days depending on tenure, and severance obligations depend on whether the employee is covered under the old pension system (employer-funded lump sum) or the newer individual account system introduced in 2005. Taiwan’s Labor Standards Act sets out specific, limited grounds for lawful termination, and getting the classification right affects both notice and severance calculations.

An EOR can typically onboard within one to two weeks for Labor Insurance and pension registration, compared with the several weeks to a couple of months needed to incorporate a Taiwanese entity and register with the tax bureau and labor insurance bureau.

Taiwan’s dual pension/severance system and its specific, limited termination grounds under the Labor Standards Act require local expertise to manage accurately. An EOR handles that compliance and carries the liability, which is typically the practical route for accessing Taiwan’s deep semiconductor and hardware engineering talent pool.