Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
TWD NT$ (New Taiwan Dollar)
Employer contributions
~17.152% employer (Labor Insurance 10% + NHI 6.07% + Labor Pension 6%)
Minimum wage
TWD 28,590/month (2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Taipei
Timezone
NST (GMT+8)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~TWD 82,006 total
/month
For a gross salary of
TWD 70,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~17.152% employer (Labor Insurance 10% + NHI 6.07% + Labor Pension 6%)
Mandatory extras
Year-End Bonus
Monthly admin
Monthly payroll - BLI + NHI + LP by last day - withholding tax - annual May return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~TWD 82,006 total
Example gross salary
TWD 70,000 gross/month
~TWD 47,180 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~TWD 12,006 employer SS
Employer contributions on that salary
Employer contributions
~17.152% employer (Labor Insurance 10% + NHI 6.07% + Labor Pension 6%)
Employee contributions
Employee Labor Insurance 1.20% + NHI 2.27% + Labor Pension 6% + income tax
Total cost above gross
~17.152% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~TWD 60,000
Per month
Taipei
TWD 70,000 - 200,000
~40%
Hsinchu (Tech)
TWD 80,000 - 250,000
~50%
Monthly gross. National average salary per year:
~TWD 720,000
Minimum wage
TWD 28,590/month (2026)
Paid:
Monthly
Extra pay
Year-End Bonus
Discretionary; 1-3 months common in tech
January (before Chinese New Year)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
5% up to TWD 560,000 / 12% / 20% / 30% / 40%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly NHI + BLI by last day of month
Social security payments
May 31 (Comprehensive Income Tax)
Income tax
By February 10
Employee tax certificate
Nian Du Suo De Zi Liao (W-2 equivalent)
May 31
Annual return
Zong He Suo De Shui Shen Bao
Late payment penalties
Late BLI: 3x contribution amount; late NHI: TWD 15,000-75,000; late income tax: 10-15% surcharge
Who collects what
National Taxation Bureau (MoF)
Income tax
Bureau of Labor Insurance (BLI)
Labor insurance and pension
NHI Administration
National health insurance
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Special Leave (Ting Jia)
7-15 days depending on seniority and employer size
Public holidays
~13 public holidays
Sick leave
Sick Leave
Employer: 30 days full pay + 30 days half pay/year
Maternity leave
14 weeks (98 days) maternity
Full pay from Labor Insurance for 8 weeks; employer covers rest
The contracts you can use, and what ending an employment relationship costs.
Permanent
Buo Ding Qi Lao Dong Qi Yue (Undetermined Period)
Fixed term
Ding Qi Lao Dong Qi Yue (Fixed Term)
Independent contractor
Cheng Bao Qi Yue (Service Contract)
Collective agreements
Tuan Ti Xie Yue (Collective Agreement)
Ending employment
Severance Pay (Resource Xiu Jin)
How it is calculated
1 month per year (legacy system) or via Individual Labor Pension Account
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Labor Pension New vs Old System
Risk Level: HIGH
Taiwan has two labor pension systems: the old (pre-July 2005, defined benefit) and the new (individual account, 6% employer contribution). Employees who joined before July 2005 may have rights under both systems. Misapplying the wrong system or failing to contribute to the individual account triggers BLI back-contribution orders.
Overtime Hour Limit Violations
Risk Level: HIGH
Taiwan's Labor Standards Act caps overtime at 46 hours/month with additional restrictions on specific industries. The penalty structure was strengthened in 2023: first violation TWD 20,000-100,000, second violation public naming and shaming.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.