Statutory Compensation in Taiwan


These are probably the most information you need to know about labor compensation in Taiwan China. Any further queries, please feel free to Contact us for Support

Q:  What is statutory Payroll Currency in Taiwan? 

As per the labour Standard Act of Taiwan, Wages shall be paid in the statutory, circulating currency; provided, however, that part of such wages may, by custom or business nature, be paid partly in kind in accordance with the labor contract. If part of the wages is paid in kind, the conversion price of such wages in kind shall be fair and reasonable to meet the needs of both the worker and his/her family members. The New Taiwan dollar[I] (code: TWD; symbol: NT$, also abbreviated as NT) is the official currency of the Republic of China (Taiwan).

Ref: Chapter Ⅲ Wages

Q: Is 13th Month's Pay or Year-end Bonus statutory in Taiwan?

Not mandatory for 13th Pay but for Year-end Bonus In theory yes, it is, as per the labor Standard Act, Article 29,

After the closing of books of account at the end of the business year, a business entity shall, after paying taxes, covering losses for the previous year and setting aside stock dividends and legal reserves, pay allowances or bonus out of the balance of net profits, if any, to workers who have worked the entire preceding year without committing fault and misconduct.

Therefore, we highly recommend that clients provide a year-end bonus at the beginning of each year equal to no less than one month's salary for employees who have been with the company for previous years. 

 "non-recurring Pay".→ Where can I input non-recurring income for employees?

Q:  Any Allowance we shall entitle to the employee which will be taxes exempted for the individual?

In Taiwan, the limitation of employee’s meal allowance that can be exempted from taxes are set to NTD3,000. The excess amount shall be reclassified as employee's salary income taxable. If you would like to give a higher allowance of meal to your employee, please place the exceeding amount into "other allowance".


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