Country Guide

Employer of Record in Taiwan (EOR in Taiwan)

Last updated: July 1, 2025

Capital City

Taipei

Languages

Mandarin Chinese (official)

Currency

New Taiwan Dollar (TWD)

Population Size

Approximately 23.5 million

Employer Taxes

18.4%

Employee Costs

18.4%

Payroll Frequency

Monthly

Public Holidays Calendar

Back to All Countries

Hire Globally, Pay Locally, Expand Effortlessly

We act as your Employer of Record in Taiwan. This nation, known for its advanced technology sector and strategic location in Asia, offers immense opportunities for international businesses.

However, successfully integrating into Taiwan’s regulatory environment, including labor laws and tax regulations, can be complex during an expansion.

That’s why an Employer of Record (EOR) in Taiwan can act as your local partner, ensuring a smooth market entry and ongoing compliance with all necessary regulations.

Want to have a Team in Taiwan TODAY?

Show me how to
grow my business
now!

We prefer to let
others grow their
business.

Show me how to grow my business now!

We prefer to let others grow their business.

In a hurry? Save this article as a PDF

Tired of scrolling? Download a PDF version for easier offline reading and sharing with coworkers

Your download will start in a few seconds. If your download does not start, please click the button:

Choosing Between an Employer of Record and Company Incorporation in Taiwan

While setting up a subsidiary in Taiwan is typically thought of as the default option for local expansion, opting for an Employer of Record offers several comparative advantages, such as:

Speed – The business setup process in Taiwan is expedited with an Employer of Record like INS Global, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks or even days.
Compliance – Both Employer of Records and subsidiaries must comply with Taiwan’s tax laws and labor regulations at all times when employing local staff. However, Employer of Records already have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
Cost – For small teams or temporary needs in particular, Employer of Record services are often more cost-effective than setting up a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, Employer of Records provide specialized streamlining options that help you efficiently integrate new markets into multicountry payroll systems.
Control – While incorporation offers full control over HR, finances, and operations, Employer of Records can provide the same level of organizational control over your workforce while reducing your administrative responsibilities and liability.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover

Decrease by 14%

Recommendation

98% of the Current PEO Clients

Administrative Fees

Saves an Average of $450

Costly Payroll and Compliance Fines

Help Avoid

Company Growth Rate

7 – 9%

ROI

27%

Closed During Pandemic

-58%

The Advantages of a Taiwan Employer of Record

Efficient Setup

Avoid the complexities of navigating Taiwan’s tax system and labor laws. An Employer of Record simplifies the setup process, ensuring compliance from the start.

Expert Compliance Management

Taiwan’s regulations can be intricate, but Employer of Records have the expertise and experience needed to keep your business compliant with local tax laws, labor regulations, and social security contributions.

Minimized Risk and Liability

Acting as your legal employer in Taiwan, an Employer of Record reduces the risks associated with employment regulations and ensures compliance.

Focus on Core Business Objectives

Delegate HR tasks like recruitment, payroll processing, and tax management to your Employer of Record, freeing up your time to focus on core business activities.

Cost Efficiency

Employer of Record services can be much more economical than establishing a local subsidiary, particularly for smaller teams or temporary needs. They do this by helping you to avoid initial incorporation costs and ongoing administrative burdens like the overheads required to hire in-house HR staff.

How Does a EOR in Taiwan Work?

INS Global’s PEO solution manages the recruitment of your employees in Taiwan in 4 simple steps:

We learn your needs and build a plan that best suits them.

Our EOR will provide a legal entity to hire staff on your behalf to begin operating in Taiwan.

The administrative and legal aspects of hiring and paying staff are all handled by us.

Your employees can continue working on the daily operations crucial to your success in Taiwan while we take care of HR.

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Taiwan, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.

A PEO provides all HR services to employees on behalf of other companies

A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee

An EOR in Taiwan legally hires the employee on behalf of the original company and provides all HR services
An EOR agreement is made between the EOR and the employee on behalf of the original company

In Taiwan both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements

INS GUIDES

Check Our Taiwan Labor Law Guide

Learn how the Taiwanese Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.

Taiwan Labor Law Overview

Employment Contracts In Australia

Contracts must be in Chinese or English and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record in Tawan ensures your contracts comply with Taiwanese labor law and protect your interests.

Working Hours in Taiwan

The maximum working hours are eight hours per day and 40 hours per week. In Taiwan, every employee must receive two days off every seven days. One of these days is flexible and can be worked at overtime rates, and the other is a compulsory rest day.

Any work that exceeds the standard weekly hours mentioned above is considered overtime and regulated using the employee contract.

Overtime in Taiwan is calculated as:

Standard rate + 1/3 for overtime less than 2 hours.
Standard rate + 2/3 for overtime of 2-4 hours
Double rate for anything above four hours (with the express consent of all parties)
Standard rate + 1 and 1/3 for overtime less than 2 hours on a rest day
Standard rate + 1 and 2/3 for overtime of 2-4 hours on a rest day

Overtime must not exceed 46 hours per month without additional agreements.

Types Of Leave

Holidays and Annual Leave

Under the Labor Standards Act (LSA), employees in Taiwan are entitled to annual leave based on their length of service. Annual leave increases progressively with seniority, starting at 3 days and reaching up to 30 days for long-term employees.

3 days for service between 0.5 and 1 year
7 days for service between 1 and 2 years
10 days for service between 2 and 3 years
14 days for service between 3 and 5 years
15 days for service between 5 and 10 years
After 10 years of service, 1 additional day is granted for each extra year, up to a maximum of 30 days

In addition to annual leave, employees are entitled to public holidays as established by national regulations, which are separate from the LSA provisions.

Parental Leave

Under Taiwan’s Labor Standards Act, women are entitled to 8 weeks of maternity leave. If the employee has worked for the same employer for at least six months, she is entitled to full pay during this period. If not, she receives 50% of her wages. Maternity leave provisions also apply in case of miscarriage.

After childbirth, mothers are granted daily breaks for breastfeeding. Fathers are entitled to 3 days of paternity leave. Parental leave benefits also apply to adoptive families.

Employer Contributions in Taiwan

The employer is responsible for payroll contributions. These contributions cover necessary insurances, including labor, employment, pension, and health insurance. The rates for the required contributions are as follows:

Labor Insurance – 7.35%
Employment Insurance – 1-2%
Pension Fund – 6%
Health Insurance – 3.102%

Altogether, these insurance costs add 18.452% to the cost of employment, so employers should be aware of this when considering a recruitment budget.

Frequently Asked Questions

faqs

How does an Employer of Record assist in entering the Taiwanese market?

An Employer of Record handles all legal, HR, and compliance tasks when employing workers abroad, allowing businesses to enter the Taiwanese market quickly without needing to establish a local entity.

What are the financial benefits of using an Employer of Record in Taiwan?

Using an Employer of Record in Taiwan can be more cost-effective than setting up a local subsidiary, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Can an Employer of Record manage visa and work permit processes in Taiwan?

Yes, a Taiwanese Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

What types of businesses benefit most from Employer of Record services in Taiwan?

Employer of Record services are beneficial for businesses of all sizes, especially those seeking rapid market entry, cost savings, and reduced administrative burdens.

How does an Employer of Record ensure compliance with Taiwanese labor laws?

Employer of Records in Taiwan have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Taiwanese labor laws.

What level of control do I retain over my employees when using an Employer of Record in Taiwan?

While the Taiwanese Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.

Date	Day	Holiday	Notes
1 January	Wednesday	Republic Day / New Year’s Day	Commemorates the founding of the Republic of China in 1912
27 January	Monday	Chinese New Year Holiday	Start of the Lunar New Year holidays
28 January	Tuesday	Chinese New Year’s Eve	Traditional family reunion dinner
29 January	Wednesday	Chinese New Year’s Day	First day of the Lunar New Year
30 January	Thursday	Chinese New Year Holiday	Continued celebrations
31 January	Friday	Chinese New Year Holiday	Continued celebrations
1 February	Saturday	Chinese New Year Holiday	Continued celebrations
2 February	Sunday	Chinese New Year Holiday	End of the Lunar New Year holidays
28 February	Friday	Peace Memorial Day	Commemorates the 1947 February 28 Incident
3 April	Thursday	Children’s Day Holiday	Observed in conjunction with Tomb Sweeping Day
4 April	Friday	Tomb Sweeping Day	Traditional day to honor ancestors
1 May	Thursday	Labor Day	Now a national holiday for all sectors
30 May	Friday	Dragon Boat Festival Holiday	Observed in conjunction with the Dragon Boat Festival
31 May	Saturday	Dragon Boat Festival	Traditional festival commemorating poet Qu Yuan
6 October	Monday	Mid-Autumn Festival	Also known as Moon Festival
10 October	Friday	National Day	Also known as Double Ten Day
28 September	Sunday	Confucius’ Birthday / Teacher’s Day	New national holiday added in 2025
25 October	Saturday	Taiwan Retrocession Day	Marks the end of Japanese rule in 1945
25 December	Thursday	Constitution Day	Commemorates the adoption of the ROC Constitution in 1947