Hiring in Taiwan with an EOR: costs, rules, and how it works (2026)
Suppose you've just agreed terms with a software engineer in Taipei. Before that person can legally start work, you need an employment permit from the Ministry of Labor, and if they're a foreign national, that permit must be in hand before day one, not applied for concurrently. Add the time to arrange an Alien Resident Certificate for stays beyond the short-term visa window, and what feels like a formality quickly becomes a multi-week administrative project. That front-loaded compliance reality is the first thing that shapes how foreign employers approach Taiwan.
Once the paperwork clears, the ongoing cost structure is relatively contained by regional standards. Employer social security contributions sit at 14.6% of salary, and there is no statutory thirteenth-month salary obligation. Taiwan's 16 public holidays are more than most countries in our dataset, so payroll calendars need to account for that. Monthly payroll cycles are standard, and the minimum wage is TWD 29,500 per month, which sets the floor for any employment contract.
The practical choice for most foreign companies without an existing Taiwan entity is an Employer of Record (EOR). An EOR hire can be live in three to five days; setting up your own entity takes three to six months. Thirty-three providers currently offer EOR services in Taiwan, with published base prices from $179 to $699 per employee per month.
How should you hire in Taiwan?
| Employer of Record (EOR) | Your own legal entity | Independent contractor | |
|---|---|---|---|
| Time to first hire | Days | Months | Immediate |
| Upfront cost | None | Incorporation, registrations, local counsel | None |
| Ongoing cost | From $179–$699/employee/month | Payroll, accounting, filings, benefits administration | Contractor invoices only |
| Best when | You want 1–5 hires fast, without a local entity or in-house payroll expertise. | You are building a long-term team (roughly 5+ employees) and want full control. | Genuinely project-based, independent work. Misclassifying an employee as a contractor carries real penalties. |
- Time to first hire
- Days
- Upfront cost
- None
- Ongoing cost
- From $179–$699/employee/month
- Best when
- You want 1–5 hires fast, without a local entity or in-house payroll expertise.
- Time to first hire
- Months
- Upfront cost
- Incorporation, registrations, local counsel
- Ongoing cost
- Payroll, accounting, filings, benefits administration
- Best when
- You are building a long-term team (roughly 5+ employees) and want full control.
- Time to first hire
- Immediate
- Upfront cost
- None
- Ongoing cost
- Contractor invoices only
- Best when
- Genuinely project-based, independent work. Misclassifying an employee as a contractor carries real penalties.
Rule of thumb: an EOR wins on speed and simplicity for the first handful of hires; once a team in Taiwan grows past roughly five people, running your own entity usually becomes cheaper than paying a monthly fee per employee.
The economics of EOR versus entity in Taiwan follow a straightforward pattern. EOR fees in the $179–$699 range per employee per month represent a fixed, predictable overhead. Against that, entity formation in Taiwan runs three to six months before you can make a single hire, and that timeline carries real opportunity cost if you're trying to move quickly on a candidate. For a single hire or a small team being built out gradually, the EOR fee structure almost always wins on pure cost grounds. The crossover point where entity overhead becomes competitive depends on headcount and local operational ambitions, but for most companies testing the Taiwan market, EOR is the cheaper path for the first year or two.
Legal risk is the second consideration, and it's not trivial. Taiwan does not operate an at-will employment system. Dismissal after probation requires statutory just cause under the Labour Standards Act, and the notice periods tied to tenure are fixed by law: 10 days for under three months of service, 20 days for three to twelve months, and 30 days for over twelve months. The severance structure runs at 0.5 months of salary per year of service. An EOR that knows this regime handles those obligations as a matter of course. A foreign entity that doesn't will find out the hard way that a termination handled the way it would be in a US or UK context can be ruled unlawful here. In my experience, that legal exposure alone is enough reason for most first-time Taiwan employers to stay with an EOR until they have local HR expertise in place.
Contractor arrangements deserve a mention. Taiwan's labor authorities look at the substance of how someone works, and misclassification of a full-time, directed worker as an independent contractor carries real exposure. If the role involves regular hours, integration into a team, and employer-directed tasks, a contractor structure is unlikely to hold up under scrutiny. The EOR model removes that ambiguity entirely.
Taiwan employment facts at a glance
Termination and severance in Taiwan
Taiwan operates under a dual severance system with different calculations for employer-initiated dismissals versus employee resignations due to employer fault. Employers must provide statutory notice periods and severance pay based on tenure, with additional protections requiring just cause for dismissal after probation.
Source: Employ Borderless research · 2024. Statutory minimums; collective agreements and contracts can set higher terms. During the probation period (up to 90 days) shorter or no notice may apply.
What catches employers out in Taiwan
Taiwan has several rules that don't appear in standard global employment templates. Each of the following has caught foreign employers off guard in practice.
18% flat withholding tax for non-resident employees
Foreign employees who spend fewer than 183 days in Taiwan in a tax year are classified as non-residents, and their Taiwan-sourced salary is subject to a flat 18% withholding tax rather than the progressive resident rates. This directly affects the employer's payroll withholding obligations and cash-flow planning, not just the employee's personal tax filing. Employers who budget using progressive rate assumptions will find their numbers are wrong from the first payroll run.
Anti-discrimination law covers zodiac signs and blood type
Article 5 of Taiwan's Employment Service Act prohibits discrimination on an unusually wide list of characteristics. Beyond the grounds most global employers expect, it explicitly includes astrological sign and blood type. Application forms, screening questions, or casual interview topics touching on these points can constitute unlawful discrimination. Standard global HR policies almost never mention them, which means localisation is required before you post a single job ad in Taiwan.
Termination requires statutory just cause, not just notice and severance
Taiwan's Labour Standards Act lists specific grounds on which an employer may dismiss an employee. Paying severance and giving notice is not sufficient on its own if the underlying reason for dismissal doesn't meet those statutory grounds. Employers must also demonstrate that no other reasonable means existed to maintain the employment. Foreign employers accustomed to severance-only termination regimes frequently underestimate how constrained their options are once an employee passes probation.
Non-compete agreements require compensation and have a two-year cap
Taiwanese law limits enforceable post-employment non-competes to a maximum of two years and requires that the agreement be proportionate in scope and accompanied by dedicated compensation paid to the employee. Multinational employers who import their standard global templates with three-year or longer restrictions, broad geographic scope, and no non-compete compensation will find those clauses either unenforceable or in need of significant rewriting before they hold up in a Taiwanese court.
Foreign nationals need employment permits before starting work
Every foreign national working in Taiwan must hold an employment permit issued by the Ministry of Labor before commencing work. Each permit is generally valid for up to three years per application, with renewals available. For stays beyond the short-term visa window, an Alien Resident Certificate is also required. Employers who try to start someone on a tourist or short-stay visa while the permit is pending are putting both the employee and themselves in a legally exposed position from day one.
Your next step
40 EOR providers can employ for you in Taiwan. Compare them independently, or tell us about your hire and get a shortlist matched to your situation.