Employer of Record (EOR) in Taiwan: Complete 2026 Guide
Guide to using an EOR in Taiwan — costs, Labor Standards Act compliance, top providers, and comparison with setting up a local entity.
Taiwan is a global technology powerhouse, with GDP growth of 8.63% in 2025 — its strongest in 15 years — driven by AI-related semiconductor demand. With a nominal GDP of approximately $884 billion, a highly skilled workforce, and strengths in electronics, semiconductors, and IT services, Taiwan is a premium hiring destination in Asia.
Taiwan's Labor Standards Act provides strong employee protections including complex overtime calculations, mandatory labor and health insurance, a 6% employer pension contribution, and strict termination rules. An Employer of Record (EOR) manages these requirements.
Why Use an EOR in Taiwan?
Complex overtime structure. Taiwan uses tiered overtime rates: 1.34x for the first 2 hours, 1.67x for hours 3-4, with different rates on rest days (2.34x/2.67x) and holidays (2x). Monthly overtime caps require careful tracking.
Multiple insurance programs. Employers contribute to Labor Insurance (70% of 12.5%), National Health Insurance (60% of 5.17%), occupational accident insurance, and a mandatory 6% labor pension. Getting these calculations right across salary caps is essential.
Strict termination protections. The Labor Standards Act requires valid reasons for termination, notice periods of 10-30 days, and severance of half a month's salary per year of service.
Entity registration. Foreign businesses must register a local entity or branch, which takes 1-2 months and costs TWD 30,000-60,000.
Important
For a detailed breakdown of Taiwanese labor laws including minimum wages, insurance contributions, working hours, and leave policies, see our Taiwan Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage | NT$29,500/month / NT$196/hour |
| Standard hours | 40 hours/week |
| Overtime | 1.34x (first 2 hrs), 1.67x (hrs 3-4); max 46 hrs/month |
| Annual leave | Up to 30 days (based on service) |
| Maternity leave | 8 weeks |
| Paternity leave | 5 days |
| Public holidays | 15 per year |
| Labor pension (employer) | 6% of monthly salary |
| Labor insurance (employer share) | ~8.75% of insured salary |
| NHI (employer share) | ~3.1% of insured salary |
| Severance | 0.5 month per year of service |
EOR Costs in Taiwan
Most EOR providers charge $500 to $700 per employee per month. Statutory employer costs add approximately 18-22% on top of salary (pension 6% + labor insurance + NHI + occupational accident).
Top EOR Providers for Taiwan
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Deel | Yes | $599/mo | Fast onboarding |
| Remote | Yes | $599/mo | All owned entities |
| Multiplier | Yes | ~$400/mo | APAC specialist |
| Papaya Global | Yes | $650/mo | Enterprise payroll |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Taiwan?
Track time, monitor productivity, and manage schedules across time zones with HiveDesk. Works with any EOR setup — $5/user/month, all features included.