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SALARY PAYMENT IN New Taiwan dollar (TWD, NT$, $)
CONTRACT LANGUAGES Chinese / English
PAYROLL TAX 17.152%
PAYROLL CYCLE Bi-weekly or monthly
TIME TO HIRE 12 hours
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Taiwan’s social security system is a robust network of programs covering various needs: Compulsory for all employees, the Labor Insurance scheme offers benefits like old-age, disability, and survivors’ pensions, maternity, and sickness benefits; the National Health Insurance ensures equal healthcare access for all citizens; the Labor Pension Fund mandates employer contributions towards individual pension accounts.
Here we go into further detail about the Taiwan social security system.
The Labor Insurance scheme provides cover in the case of death, injury and illness, loss of daily functional abilities, medical costs arising from occupational hazards.
The Labor Pension Program provides a pension scheme for employees, including expats.
The National Health Insurance (NHI) system is a social insurance that captures all residents of the country. Through this program, individuals including expats with a full time job get equal access to healthcare services. An individual will no longer be eligible for coverage under NHI when their Alien Resident Card (ARC expires).
Employment Insurance provides unemployment benefits but is only applicable to native citizens between 15 and 60 years of age.
The social security programs that employees must contribute to in Taiwan are:
As part of their social security obligations, employers in Taiwan must contribute to the following schemes:
Labor Insurance Program (LIP)
Taiwan legal entities with more than 5 employees must contribute to labor insurance.
The contribution is divided into two main categories:
National Health Insurance Program (NHIP)
The total premium for National health insurance (NHI) is 5.17% of the monthly salary up to a maximum monthly salary of TW$ 150,000. Employers pay 60% of the total premium.
Labor Pension Program (LPP)
The employer must pay a minimum of 6% of the employee’s monthly salary to a specific Individual Pension Account, up to a maximum salary of TW$ 150,000.
Mandatory contributions for employers in Taiwan are complex, and are higher than other regions like Hong Kong, where employers only need to contribute 5% of an employee’s salary to social security.
Your business can easily hire employees in Taiwan without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Employers contribute on average approximately 15% of an employee’s salary to social security in Taiwan.
Social security in Taiwan covers medical, disability, retirement, and death benefits.
