Hire through a PEO in Taiwan in 2024

Working with a reliable Taiwanese PEO to manage all important HR responsibilities, such as payroll, contract administration, and guaranteeing tax compliance, comes at a low cost that is calculated as a monthly charge based on the earnings of the co-employed personnel. 

Working with an EOR allows you to transport staff or hire in Taiwan securely, practically, and legally. This form of outsourcing can be used either temporarily or long-term. 

When an employee is managed by a PEO, they have access to several benefits, such as full legal protection, local understanding of all employer responsibilities, timely and accurate payment, improved employee perks, and more. 

While maintaining complete control over their work process, contractors who interact with clients through a PEO or EOR have access to all the same perks and protections as regular employees. 

Yes, a PEO takes into account any differences in local or regional employment regulations while offering you protection no matter where you are. 

With certain PEO organizations, there may be a minimum or maximum number of employees you may hire. However, you are free to co-employ as many or as few employees with INS Global as your development strategy requires. 

In addition to wages and any payments made to recruiting agencies or experts, indirect expenditures such as social insurance contributions, bonuses, or incentives must be included in payroll expenses. 

Additionally, even though signing bonuses are optional if chosen, they have to be considered when figuring up recruiting expenditures as they could make you stand out to potential new hires in today’s increasingly competitive market. 

Taiwan, like many other countries, has effectively adapted to the possibility of employee remote work since the COVID-19 outbreak. Employees of a corporation with its headquarters in Taiwan should still have the option between a physical workspace and a home office for fair employment practices and as a competitive incentive. 

To assist you in finding the ideal new team member in Taiwan, members of our recruitment team have access to professional networks, in-depth knowledge of offline and online business resources, familiarity with area best practices, and more. 

INS Global uses the best recruitment services to assist you to identify the finest in both Taiwanese natives and foreign residents. 

Companies of all sizes, from SMEs to multinational businesses, that are searching for a quick, easy, and secure approach to joining the Taiwanese market should consider using a PEO.  

With our legal experience being ideally relevant to anybody who either lacks their own internal structures or wants to reduce company bloat while expanding, INS Global offers high-quality PEO services to businesses in a wide range of sectors.  

Taiwanese direct hiring of independent contractors is an option, as well as hiring them through an intermediary like a staffing agency or an umbrella company. Through networking, job boards, social media, trade associations, and other means, you may find the right contractors to meet your demands. 

The majority of the time, an independent contractor can work as a self-employed freelancer or through their own small company, through which they can issue bills to clients. 

Although hiring practices may vary depending on your needs, an independent contractor may be asked for a CV, portfolio, references, and maybe a signed NDA. Checking a contractor’s references is an absolute must to guarantee quality of service. 

Payroll in Taiwan is organized every month, with many companies paying their employees in the middle of the month. 13th–month wages are usually paid during the lunar new year.  

In 2023, the minimum wage is NT$26,400 (roughly US$842) per month. 

A work permit, work visa, and alien residence permit are all required for employees looking to live and work in Taiwan. There are lists of requirements associated with each of the above, with work visas typically being limited to specific professional sectors. Employees apply for these documents through their company, the validity of the alien work residence permit being 1, 2, or 3 years. 

Along with making deductions for individual income tax, companies also have to manage social security contributions on behalf of their employees during the payroll process. The total employer contribution to these funds amounts to around 17% of the employee’s monthly salary. 

Social security contributions in Taiwan cover labor insurance, health insurance, and pension. Foreign workers are not eligible for the national pension program. Additionally, workers receive paid annual leave, sick leave, and parental leave.  

Employers may not make unilateral changes to an employee’s contract if the changes are unfavorable to the employee. An exception to this may be if the changes relate to discretionary payments.  

In general, employer changes must be considered reasonable, and it’s always best practice to seek signed employee consent.  

Payroll contributions cover the majority of any costs required by the national single-payer healthcare system. As a result, the national health insurance system is mandatory, although many employers also still offer private healthcare plans.  

Severance pay in Taiwan amounts to a month’s salary for each year of service.

Rather than a single governmental body, the Labor Standards Act (LSA) is overseen by several relevant authorities in charge of regulating the various aspects of an employment relationship.  

There are around 12 national public holidays per year in Taiwan. Many of these holidays work according to a lunar calendar so may be subject to change. Payment on public holidays is not mandatory, although employees required to work on a national holiday can choose between a special payment rate or additional time off.