- Country Information
- Taiwan
Statutory Compensation in Taiwan
Modified on: Thu, 6 Nov, 2025 at 3:51 PM
TABLE OF CONTENTS
This article outlines key statutory salary regulations in Taiwan, including currency requirements, bonuses, allowances, and minimum wage updates.
Minimum Wage Update (Effective January 1, 2026)
As announced by the Ministry of Labor (MOL), the minimum wage will increase:
- Hourly Wage: NT$196
- Monthly Wage: NT$29,500
Payroll Currency Requirements
According to Chapter III of the Labor Standards Act, wages in Taiwan must be paid in the statutory, circulating currency:
- The official currency is the New Taiwan Dollar (TWD), symbolized as NT$.
- While wages must primarily be paid in cash, partial payment in kind is allowed if:
- It aligns with business customs or the nature of the work.
- The conversion value is fair and reasonable, meeting the needs of both the employee and their family.
Year-End Bonus & 13th Month Pay
13th Month Pay:
- Not mandatory under Taiwanese labor law.
- Employers may choose to offer it as a discretionary benefit.
Year-End Bonus:
- Statutory under Article 29 of the Labor Standards Act.
- After closing the books and covering taxes, losses, and reserves, companies must allocate bonuses from remaining net profits to employees who:
- Worked the entire preceding year.
- Did not commit any fault or misconduct.
Best Practice: We recommend providing a year-end bonus equal to at least one month's salary for eligible employees.
Tax-Exempt Allowances:
Meal Allowance
- Up to NT$3,000/month is tax-exempt.
- Any amount exceeding NT$3,000 must be:
- Reclassified as taxable salary income, or
- Entered under “Other Allowance” in payroll systems.
Non-Recurring Pay
If you need to input non-recurring income (e.g., bonuses, one-time allowances), please use the designated “Non-Recurring Pay” field in your payroll system Where can I input non-recurring income for employees?
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