Hiring in Taiwan

The terms set out role, salary in TWD, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Bilingual Traditional Chinese and English contracts are standard for commercial roles.

Fixed-term contracts are only permitted for temporary, short-term, seasonal or specific project work, so most EORs default to indefinite terms.

Set probation from day one. Ending employment during probation still needs a lawful ground, and notice and severance follow the usual statutory rules.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.34 times the hourly rate for the first two hours and 1.67 times for the next two, with a standard monthly cap of 46 hours.

Most professional hires are still covered, because exemptions under Article 84-1 need local authority approval and apply only to narrow categories. Put the position in writing either way.

Many international employers grant more than the statutory scale in the early years, so quote your own policy figure when you budget. Unused annual leave must be paid out at year end or on exit, unless it is carried forward by agreement.

Ordinary sick leave runs to 30 days a year at half pay. Maternity leave is eight weeks, paid in full by the employer after six months' service, while parental leave allowances come from employment insurance, so confirm which side the EOR carries.

Either side may terminate on notice or pay in lieu, but the employer needs a statutory ground, such as business contraction or the employee being unable to do the job. Severance under the current pension system is half a month's average wage per year of service, capped at six months.

The EOR runs the process as the legal employer and will want the paperwork in order, including notice to the local authority, final pay, unused leave and severance. Unfair dismissal claims go to labour mediation and the courts, so keep a documented reason.

Supplementary group medical and life cover are common for professional roles, and a year-end bonus is a strong market expectation, even though neither is mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add up to roughly 20% on top of gross salary, and less at senior pay because each scheme is capped. That is before the EOR fee.

Departure is the trap. A foreign employee leaving Taiwan for good must file and pay tax before exit, and anyone who ends up under 183 days for the year is reassessed at the 18% non-resident rate, so build that into the offboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the revenue tests and salary floor apply to the sponsor, not to you.

Employment Gold Card holders carry an open work permit and need no sponsor. For everyone else, set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers are generally permitted, but the authorities can restrict them, and 2025 amendments move oversight to a new Personal Data Protection Commission.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here takes one to three months because foreign investment approval and capital verification come first. The running cost is the point: bookkeeping, bi-monthly VAT filings, audit thresholds and payroll software set an annual floor, and sponsoring foreign hires in year one needs around NT$5 million of paid-in capital.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.