Taiwan · Glossary
Taiwan HR and payroll glossary
19 local terms and acronyms: tax, social security, payroll and employment law.
The terms and acronyms you meet on payslips, tax and employment documents in Taiwan. Figures are for 2026; the calculations are on Taiwan's HR data page and in the take-home pay calculator.
BLIConsolidated income taxEmployment insuranceInsured salary gradeLabour insuranceLabour pension (new system)LSANational Taxation BureauNHINHI supplementary premiumNotice periodOccupational accident insurancePersonal exemption / standard deductionProbation periodSalary special deductionSeverance paySpecial leaveWage arrears repayment fundYear-end bonus
Tax
Consolidated income tax
綜合所得稅
The national income tax on an individual's annual income, filed each May for the previous calendar year. For income year 2026 the rates on net income are 5% up to NT$610,000, 12% to 1,380,000, 20% to 2,770,000, 30% to 5,190,000 and 40% above. There is no local income tax. Employers withhold monthly and give employees an annual withholding statement. Source
Personal exemption / standard deduction
免稅額／標準扣除額
Amounts deducted from income before tax. For income year 2026 the personal exemption is NT$101,000 per person and the standard deduction for a single filer NT$136,000; taxpayers may itemise instead (for example insurance premiums up to NT$24,000 a person, NHI premiums in full). Source
Salary special deduction
薪資所得特別扣除額
A flat deduction for salary income of NT$227,000 per person for income year 2026 (or the salary itself if lower), given on top of the exemption and the standard deduction. Source
Social security and pensions
Employment insurance
就業保險
Unemployment insurance at 1% of the labour-insurance insured salary (capped at NT$45,800 a month), shared 20% employee, 70% employer and 10% government. It pays unemployment benefit, vocational training allowances and parental-leave allowance. Source
Insured salary grade
投保薪資（投保金額）分級表
Labour insurance, NHI and pension contributions are calculated not on exact pay but on a grade from an official table, rounding pay up to the next grade. Each scheme has its own table and cap: NT$45,800 a month for labour insurance, NT$72,800 for occupational accident insurance, NT$150,000 for pension and NT$313,000 for NHI in 2026. Source
Labour insurance
勞工保險（勞保）
The social insurance for old-age, disability, death, sickness and maternity benefits. The 2026 ordinary-accident rate is 12.5% of the insured salary including 1 point for employment insurance; the employee pays 20%, the employer 70% and the government 10%. The insured salary is capped at NT$45,800 a month, so the cost is small for senior staff. Source
Labour pension (new system)
勞工退休金新制（勞退新制）
Employers must pay at least 6% of each employee's monthly contribution wage into a personal pension account held by the Bureau of Labor Insurance, on wages up to NT$150,000 a month. Employees may add up to 6% voluntarily, which is deductible from taxable income. It covers everyone hired since July 2005. Source
NHI National Health Insurance
全民健康保險（健保）
Universal health insurance at 5.17% of the insured amount, which follows a grade table up to NT$313,000 a month. The employee pays 30% for themselves and each dependant; the employer pays 60% multiplied by 1.56 to cover an average number of dependants, about 4.84% of pay. Source
NHI supplementary premium
二代健保補充保險費
An extra 2.11% NHI charge. Employees pay it on bonuses in the year above four times their monthly insured amount; employers pay it on the gap between their total monthly payroll and employees' total insured amounts. It matters for large year-end bonuses and high salaries. Source
Occupational accident insurance
勞工職業災害保險
Work-injury insurance paid entirely by the employer. The rate depends on the industry and is revised every three years: 0.15% for consulting, legal and head-office businesses, 0.12% for IT and finance (each including the commuting-accident rate), on an insured salary capped at NT$72,800 a month. Source
Wage arrears repayment fund
積欠工資墊償基金
A small employer levy of 0.025% of the labour-insurance insured salary that funds payment of wages, severance and pension owed by insolvent employers. Source
Pay and payroll
Special leave Paid annual leave
特別休假（特休）
Paid annual leave by length of service: 3 days after 6 months, 7 after 1 year, 10 after 2, 14 after 3, 15 after 5, then one more day a year from 10 years up to 30. Days unused at the end of the year must be paid out, or carried over one year by agreement. Source
Year-end bonus
年終獎金（年終）
A bonus paid around Lunar New Year, commonly one month's pay or more. It is customary, not statutory, but candidates quote total pay in months (for example 14 months), so it must be clarified in offers. Bonuses above four months' insured amount in a year attract the 2.11% NHI supplementary premium. Source
Employment law
LSA Labor Standards Act
勞動基準法（勞基法）
The main employment law: 8 hours a day and 40 hours a week, two days off in seven, capped overtime paid at a premium of at least one third, and dismissal only on the grounds it lists. Article 11 covers business reasons and incompetence (with notice and severance); article 12 covers serious misconduct (without either). Source
Notice period
預告期間
For dismissal on statutory business grounds: 10 days after 3 months' service, 20 days after 1 year and 30 days after 3 years, or pay in lieu. During notice the employee may take up to two paid working days a week to look for a job. Employees who resign give the same notice. Source
Probation period
試用期
There is no statutory probation. The Ministry of Labor accepts an agreed trial period of reasonable length (typically 3 months), but dismissal during it still needs a statutory ground, with notice and severance. Source
Severance pay
資遣費
For employees under the new pension system, half a month's average wage per year of service, pro rata, capped at 6 months' wages. It is due on dismissal for business reasons or incompetence, or if the employee resigns because of the employer's breach, but not on dismissal for misconduct or voluntary resignation. Source
Agencies and institutions
BLI Bureau of Labor Insurance
勞動部勞工保險局（勞保局）
The Ministry of Labor agency that runs labour, employment and occupational accident insurance and holds the labour pension accounts. Employers enrol each employee on their first day and pay the premiums and pension contributions to it monthly. Source
National Taxation Bureau
財政部國稅局
The Ministry of Finance's regional tax offices (for example the National Taxation Bureau of Taipei), which receive employers' withholding payments and annual withholding returns and assess individual income tax. Source
For Japan, see the Japan HR Glossary.