Taiwan is a country in east Asia located in the northwestern Pacific Ocean, consisting of 168 islands. The main island is Taiwan has mountain ranges dominating the eastern 2/3 of the island, and the western 1/3 has plains where its urbanized population is concentrated.

Taiwan is claimed by the People’s Republic of China, which refuses diplomatic relations with countries that recognize Taiwan, but the country maintains official diplomatic relations with 13 out of 193 UN member states.

The minimum wage is TWD 26,400 per month or TWD 176 per hour, and a standard workweek is 40 hours at 8 hours per day. Overtime work is usually paid between 134%-267% of the regular salary.

Parental Leave

Pregnant employees are entitled to 8 weeks of maternity leave, which is normally taken as 4 weeks before the due date and 4 weeks after the birth. Fathers are entitled to 7 days of paid paternity leave.

Sick Leave

Employees in Taiwan are entitled to 2 types of sick leave. Regular sick leave can be taken for up to 30 days, and is paid at 50% of the regular salary. For serious health issues requiring hospitalization, employees can take up to 1 year of unpaid leave.

Paid Leave

Taiwan has 15 public holidays, and employees are entitled to paid time off each year, the length of which depends on how long they have worked at their company.

• 6 months-1 year = 3 days of paid time off
• 1-2 years = 7 days of paid time off
• 2-3 years = 10 days of paid time off
• 3-5 years = 14 days of paid time off
• 5-10 years = 15 days of paid time off
• 10+ years = 15 days + 1 day per year of service (30 maximum)

Employees can also take leave for marriage, civic duty, bereavement, and others.

Process

Employment contracts can be terminated with just cause, as long as a notice is provided before the termination comes into effect.

Notice Period

Notice periods for terminations depend on how long an employee has worked at their company:

• 3-12 months = 10 days of notice
• 1-3 years = 20 days of notice
• 3+ years = 30 days of notice

Severance Pay

Employees in Taiwan are usually entitled to 0.5 months of wages for every year of continuous employment at their company.

It is customary to pay a 13th-month salary bonus in Taiwan, generally during the Lunar New Year.