Employer of Record in Taiwan: what one employee really costs

Questions people ask before booking a demo

How much do employer contributions add to a salary in Taiwan?

About 14.4% at this page's example of US$45,000 — roughly TWD 118,900 a month. That is about US$539 a month: US$1,395 a year of labor insurance, US$121 of employment insurance, US$2,178 of health insurance, US$2,700 of pension and US$69 of occupational accident cover. The rate falls as salary rises, because three of those five lines are already charged at a ceiling rather than on the salary.

Why do providers quote over 20% when this page shows 14%?

Because a percentage with no ceiling in it is not the bill. Add the nominal rates — 8.05% labor insurance, 0.7% employment insurance, 4.83912% health insurance, 6% pension and the accident line — and you land near 20%, which is what a quote shows. But labor and employment insurance stop at an insured salary of TWD 45,800 a month and the accident premium at TWD 72,800, so on a salary of TWD 118,900 those three lines are charged on a third to two thirds of the pay actually handed over. The gap between the quoted percentage and the charged amount is the reason to price a specific salary.

Is the 6% labor pension contribution negotiable?

No. The Labor Pension Act writes it as a floor — the employer's contribution shall not be less than six percent of monthly wages — paid into the worker's individual pension account, and the worker may add up to 6% more from their own pay. The contribution wage follows the official grade table, whose top grade is TWD 150,000 a month, so the employer's pension line stops at TWD 9,000 a month. It is the largest single line in this ledger at the example salary.

Does Taiwan require a 13th-month salary?

Not as a fixed entitlement. Article 29 of the Labor Standards Act requires a profitable business to pay allowances or a bonus out of what remains after tax, prior losses, dividends and reserves, to workers who served the full year without fault — a duty tied to profit, with no rate attached. A Lunar New Year bonus of one to two months is common market practice and is usually written into the contract instead. If one is paid, the employer also owes a supplementary health premium on it, because it sits above the declared insured amount.

What does an employer of record in Taiwan charge on top of these contributions?

Its own fee, and at this salary the fee is larger than the statutory charges. Employer contributions come to about US$539 a month at US$45,000, while published EOR fees start around US$599 a month. The all-in monthly cost is therefore roughly US$3,750 of salary plus US$539 of contributions plus the fee — compare the totals in the table above, which already add both, and negotiate the fee, the deposit and the FX margin rather than the payroll charges.