Knowledge Zone

Understanding your payslip in Taiwan

When you first start working in Taiwan, you might find that your actual take-home pay is less than your agreed-upon monthly salary on your first payslip—this is normal. Taiwanese employers are legally required to deduct labor insurance, national health insurance, and employment insurance premiums from your salary, and in some cases, income tax is also withheld. This article will help you understand all these items at once.

I. Taiwan's minimum wage (2026)

Taiwan has been implementing the Minimum Wage Act since 2025, and the minimum wage is reviewed and adjusted annually by the Minimum Wage Review Committee.

⚠️Attention foreign white-collar professionals : According to the Employment Services Act, employers hiring foreign white-collar professionals must pay them a monthly salary of no less than NT$47,971 (2026 standard). If the salary is below this threshold, the work permit application will not be approved.

II. Labor Insurance (Labor Protection)

Employment insurance is Taiwan's primary social insurance program, providing protection against work-related injuries, illnesses, disabilities, old age, death, and unemployment. Employers are legally obligated to provide employment insurance for foreign workers legally employed in Taiwan.

Rates and Burden Ratio

Calculation method : Based on "monthly insured salary", it is divided into 13 levels, from NT$27,600 to NT$45,800 (if it exceeds the upper limit, the upper limit will be used for calculation).

Example: Monthly salary NT$35,000 → Insured salary NT$36,300 → Employee's monthly deduction is approximately NT$799.

Labor protection provided

• Maternity benefits : You can apply for two months of insured salary for childbirth.
• Injury and illness benefits : Starting from the 4th day of hospitalization, 50% of the insured's salary will be paid daily.
• Disability benefits : Benefits are provided according to the level of disability caused by injury or illness.
• Old-age benefits : Workers can receive an old-age pension upon retirement.
• Death Benefit : A funeral expense subsidy will be provided upon the death of the deceased or a dependent.

III. Universal Health Insurance (Health Insurance)

Taiwan's National Health Insurance is a mandatory social insurance program, and anyone who has worked in Taiwan for more than four months is required to enroll. After enrolling in National Health Insurance, you only need to pay a portion of the costs when seeking medical treatment (registration fee + partial payment), significantly reducing medical expenses.

Rates and Burden Ratio

Example: Monthly salary NT$35,000 → Employees have approximately NT$543 deducted from their salary each month.

Medical expenses

• Primary care clinics : Partial coverage NT$50 ~ NT$80
• Regional hospitals : Partial reimbursement NT$150 ~ NT$300
• Regional hospitals : Partial coverage NT$240 ~ NT$420
• Medical Center : Partial coverage NT$420 ~ NT$560
• Emergency room : Partial reimbursement NT$450 ~ NT$550 (depending on the condition)

⚠️ The outpatient co-payment amount has been adjusted since 2023, and the actual cost is based on the amount at the time of medical treatment.

IV. Employment Insurance

The employment insurance premium rate is 1% of the monthly insured salary, with employees bearing 20% (approximately 0.2%). If laid off or if the contract expires and is not renewed, unemployment benefits can be applied for, with a maximum of 6 months (60% of the insured salary per month).

V. Example of Payroll Deduction Summary

For example, with a monthly salary of NT$38,000 (monthly insured salary of NT$38,200):

✅After residing in Taiwan for 183 days , income tax will be subject to the general tax rate (5% threshold), resulting in a significant increase in actual salary.

VI. Labor Retirement Pension (Labour Pension)

Employers are legally required to contribute 6% of their employees' monthly salaries to their individual retirement accounts. This contribution is fully borne by the employer and is not deducted from the employee's salary . This is your retirement reserve, which you can apply to withdraw after leaving your job or retiring.

Employees may also voluntarily contribute an additional 6% of their salary, which will allow them to enjoy tax savings on personal income tax.

VII. Frequently Asked Questions

Q1: Do foreign nationals also need to pay labor insurance and health insurance?

Yes. Employers are legally required to provide labor insurance and health insurance for legally employed foreign workers.

Q2: Do I need to enroll in health insurance for short-term jobs (less than 4 months)?

Foreign nationals working in Taiwan for less than four months may choose not to join the National Health Insurance program temporarily, but must purchase international travel insurance on their own for unforeseen circumstances. After working for four months, enrollment is mandatory.

Q3: If there is a problem with my payslip, who can I appeal to?

You can call the labor complaint hotline 1955 (available 24/7) or apply for labor dispute mediation at the labor bureau of the county or city where you work.

Q4: How do I calculate my Labor and Health Insurance premiums?

You can use the rate calculation tool on the website of the Bureau of Labor Insurance, Ministry of Labor ( www.bli.gov.tw ), or consult your employer's human resources department.

Related Resources

• Ministry of Labor Minimum Wage Information: www.mol.gov.tw
• Bureau of Labour Insurance: www.bli.gov.tw
• Central Health Insurance Administration: www.nhi.gov.tw
• Labor Complaint Hotline: 1955 (24 hours, toll-free)
• If you have any questions, please contact us at: service@tnstw.com

※ Information Timeliness Reminder: The amounts, rates, market conditions, and regulations contained in this article are information as of the time of writing (2026). Basic wages, labor and health insurance rates, etc., may be adjusted every year. Please refer to the latest announcements from the competent authorities and current regulations for the most accurate information.