Global Hiring Guide: Taiwan

What have you heard about global hiring in Taiwan? Chances are that you’ve heard Taiwan is one of the bubbling places in East Asia, with a highly industrious and booming economy. 

Taiwan boasts of qualified manpower with a strategic location, giving businesses better access to greater talent from across the globe. For companies looking at expanding into Asia, the talent pool in Taiwan can be quite significant for industries like electronics, manufacturing, services, and more. This is what makes Taiwan this ideal spot for global hiring and expansion.

If you’re a business who is hiring foreign workers in Taiwan, then you’re at the right place for accurate information. In this article on Taiwan hiring, you’ll be getting a step by step process on how to get started, tips on managing your workforce, and essential information on taxes and contributions that you need to keep in check.

1. Understanding the Taiwanese Labor Market

To ensure a compliant Taiwan hiring process, we must first understand its labor laws, minimum wage standards, working hours, and social security system. Alternatively, you can hire an EOR to assist with your Taiwan hiring.

Read next: Global Employer of Record Guide: Taiwan

Labor laws

For Taiwan hiring, labor laws exist to protect the rights of employees and ensure equity within the workplace. The main law governing employment relationships is the Labor Standards Act, with primary issues related to wages, working hours, and leave. For example, it provides for the necessity of written contracts, regulation over overtime pay, and even stipulates the procedures pertaining to termination. It becomes very important to know such laws to achieve compliance and maintain good workplace relations.

Minimum wage

In 2023, the minimum wage order for Taiwan was TWD 26,400 per month or TWD 176 per hour. The rates are however subject to periodic review, whereby the government may adjust them to reflect the economic conditions prevailing from time to time. In Taiwan hiring, the employer ensures that all their employees receive at least the minimum wage to act as a benchmark for fairly compensating them. For instance, if you hire part-time workers, you are supposed to calculate your employee wages based on the hourly minimum wages in observance of the law.

Working hours

Normal working hours in Taiwan are 8 hours a day and 40 hours a week. Work time exceeding these hours constitutes overtime work and shall be paid as such. The employer is obliged to provide at least one day off every seven days. To explain further, for example, working for 48 hours in one week, the time extended over and above the normal time should be remunerated overtime, mostly at 1.33 times the normal pay per hour for the first two hours and 1.66 times thereafter.

Social security

Taiwan hiring, for example, requires that compulsory social securities are complemented by the employer and employee, including NHI and Labor Insurance. 

This includes comprehensive health cover such as NHI and Labor Insurance on maternity leave, unemployment, and occupational injury compensation. If an employee happens to get injured on the job, Labor Insurance covers essential medical care and provides support while he or she recovers.

Learn more about Labor Insurance!

2. Process for Taiwan hiring

Here are the major steps that you need to account for in your Taiwan hiring process to ensure that you attract and secure the best talent:

Job description

Writing a clear and detailed job description is the first step towards effective Taiwan hiring. A job description includes responsibilities, qualifications, and skills. If you are hiring a software engineer, you can list the programming languages they must know, the technologies they must be familiar with, besides stating the relevant experience. A well-written job scope attracts high quality candidates.

Recruitment channels

Next, you need to choose the right recruitment channels in order to reach potential candidates. In Taiwan, favorite channels include online job portals such as 104 Job Bank, and recruitment agencies specialized in specific industries. Social networking sites can also be a good avenue to reach out to a wide audience. For example, if you need mostly creative professionals, then places like LinkedIn and other forums related to their industry will put you in touch with qualified people.

Screening and selection

As applicants start applying, your screening and selection process begins. All of which includes looking at resumes and cover letters to shortlist candidates who fit the job description. 

You can also conduct initial screening interviews to find out whether or not they have the required skill, experience, and cultural fit. You may want to use one or more of the following: phone, video, in-person interviews. For instance, you could have an initial phone interview to check for interest and basic qualifications, followed by either a technical test or an in-person interview.

Job offers

When the ideal candidate has been selected, make a job offer with details of remuneration, benefits involved, and other conditions of employment. Ensure that the job offer is at least at minimum wage level, inclusive of statutory benefits as per Taiwanese labor law. 

Be prepared to negotiate as candidates may seek clarification or have other requests for compensation or working conditions. Once a mutually agreed position has been reached, you can then formalize the offer in an employment contract.

3. Onboarding and Compliance for Hiring Foreign Workers in Taiwan

Hiring foreign workers in Taiwan requires some processes to ensure that it is compliant and the onboarding process is smooth. Specifically, here is how to go about it in detail:

Employment contracts

You should draw up an employment agreement detailing the conditions. This should include job descriptions, pay, fringe benefits, and severance packages and it should be in compliance with Taiwanese labor laws. It also needs to be provided in both English and Mandarin to avoid ambiguity. For example, a sample of an employment contract detailing working hours and overtime policy should be given clearly to the employee to avoid disputes.

Work permits

Every foreign worker employed in Taiwan needs a work permit to work legally. Normally, the employer will take care of this for the worker by lodging the necessary documents with the Ministry of Labor. The paperwork includes verification of employee qualifications and a job description outlining duties. 

For Taiwan hiring, you should do this in advance as a work permit could take weeks to be processed and approved. Make sure all the paper works are accurate as this may also cause delays.

Social security registration

After issuance of the work permit, the foreign employee will then be enrolled in social security programs, such as National Health Insurance (NHI) and Labor Insurance. These are jointly contributed to by employers and employees and provide the required benefits to the workers, including health care and unemployment insurance according to regulations for Taiwan hiring. It is mandatory and should be carried out without any delay to ensure that the employee gets covered from the date of commencement. 

Induction training

Induction training can help new hires get oriented with your company and workplace culture. Resources or mentorship should also be provided to ensure they are engaged and supported from day one. It’s also important to take note of cultural differences and sensitivity when hiring foreign workers in Taiwan. For example, communication styles and business etiquette in Taiwan may be different compared to existing employees.

4. Managing Your Workforce

Taiwan hiring isn’t just limited to getting employees onboarded. It’s also about effectively managing and engaging them throughout the employee lifecycle. 

Taiwan payroll and benefits 

When it comes to Taiwan payroll, it’s important to be aware of the local laws regarding payment dates, tax deductions, and statutory benefits for the employees. Taiwan payroll is computed based on the wages earned by employees with overtime and bonuses factored in. 

Benefits generally include health insurance and pension fund contributions under the NHI and Labor Insurance programs. Compliance with these requirements are essential to ensure that the company is staying compliant while managing payroll.

Alternatively, an EOR is a good alternative as they provide Taiwan payroll services to ensure a seamless and compliant payroll process every time. 

Leave management 

Managing your workforce in Taiwan hiring also includes proper leave management which includes:

• Annual leave: Annual leave in Taiwan normally depends on the length of service, mostly starting with seven days for the first year.
• Public holidays: Public holidays according to the government must also be put into consideration, and employers need to accommodate this in their staffing.
• Maternity and paternity leave: In Taiwan, maternity leave is generally eight weeks, while paternity leave is typically five days. Businesses who have these policies can show their employees they care for their wellbeing.
• Sick and parental leave: Leaves for sickness are possible, but most policies require submission of medical certificates. Parental leave also helps parents to be with the children and encourage work-life balance.

Performance management

The performances of employees in Taiwan hiring are normally managed by setting appropriate goals, effective and frequent feedback, OKRs, and appraisal of performance. This will help the managers in figuring out areas of achievement and improvement. A well-structured and executed performance management system will help achieve greater output and also delight employees. 

Read next: 12 Employee Recognition Examples to Keep Your Team Engaged All Year

Employee relations

Having good employee relationships will help your workers coexist within the workplace in harmony. It can be achieved by facilitating open communication, resolving conflicts, and encouraging employees to be supportive of one another. Also, encouraging feedback and addressing concerns promptly can reduce turnover and boost employee morale. 

Compliance

Like any other business, you will need to learn and comply with all labor legislation in Taiwan hiring if you’re setting up your business there. Observing all the employment contracts, hours of working as well as the rights of employees, the policies and procedures will be constantly reviewed to help with compliance to current laws so some of the legal hassles can be avoided.

5. Taxes and Contributions

Taxes and contributions for Taiwan hiring are both an employer and employee responsibility. 

Employer obligations

Labor insurance contributions

Employers must pay labor insurance contributions to pay for benefits, including occupational injury, maternity and unemployment. This is paid as a percentage on the employee's salary, which is compulsorily paid according to Taiwan hiring laws.

National health insurance contributions

The employers are also expected to contribute to the NHI program, a healthcare coverage for all employees. This is jointly contributed by the employer, employee, and government.

Employment insurance contributions

Employment insurance is also one of the compulsorily paid benefits, which provides unemployment benefits to the employees. It requires the contribution of the employer to be entitled as an unemployment benefit for the employee during no employment periods.

Tax compliance

When it comes to Taiwan hiring, employers have tax compliance duties which includes: 

• Payroll processing: It is the responsibility of the employer to process Taiwan payroll with correct wage calculation, taxes, and contributions.
• Record keeping: All payroll transactions and employee contributions are also expected to be kept accurately by employers for auditing purposes.
• Tax filing: Taxes filed by the employers on behalf of employees should be ensured to include all the contributions and withholdings correctly with proper documentation. 

Employee obligations

Income tax

As a rule in Taiwan hiring, employees are required to pay income taxes, which the employer is required to withhold from the employee's salary. The rate will differ for each employee, depending on his or her income and personal situation.

According to PWC, the individual income tax in Taiwan is:

Labor insurance contributions

Employees also have labor insurance deducted from their salary. Labor insurance provides various benefits arising from maternity, injuries, and other situations. This is done automatically from the employer’s end.

National health insurance contributions

Also in Taiwan hiring, the employees also contribute to the NHI through shared payments with their employer for assured access to health care services.

Employment insurance contributions

A portion of the employee's remuneration contributes to the employment insurance scheme, so they get to enjoy financial support when unemployed.

Optimize Your Taiwan Hiring Strategy Today

When it comes to Taiwan hiring, it requires meticulous attention to legal regulations and thorough documentation. You should strive to minimize human error by leveraging automation to ensure accuracy and compliance.

Omni’s suite of features makes the Taiwan hiring process efficient and compliant. With secure and centralized employee records, HR teams can swiftly access employment contracts and essential documents that support the requirements for hiring foreign workers in Taiwan.

For leave management, our time off management capabilities allows managers to approve leave applications on the go, and keep track of who’s in and out of the office with at-a-glance scheduling. Our employee self-service portal allows employees to submit their employee time off request, which automatically routes to the appropriate manager thanks to customizable approval workflows. With automated calculations, employees and managers can easily view leave balances in real-time, and track how many vacation days they have left without having to go through HR.  

When it comes time for payroll and tax processing, Omni offers a comprehensive payroll solution tailored to Taiwan’s specific requirements. With features like support for New Taiwan dollar and automated tax calculations, Omni can help HR teams simplify their payroll processing and ensure compliance with ease.

‍Book your product tour with our team today to learn more about how Omni can simplify your Taiwan hiring process.