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Hire Employees in Taiwan (China) — Overview

Taiwan is an attractive destination for businesses seeking to expand their operations throughout the world. Taiwan offers many benefits for businesses, including a highly educated workforce, a stable political and economic environment, and proximity to mainland China — the world’s fastest-growing economy.

Taiwan has a very business-friendly environment. The government is supportive of foreign investment and there are numerous incentive programs available to encourage businesses to set up operations on the island. This makes it popular with businesses looking to expand and hire globally.

Facts & Stats

Population

23.37M(11.92M labor force)

 

Largest City

Taipei

Languages Spoken

Mandarin (2nd most spoken world language), English (1st) and indigenous languages

Currency

New Taiwan Dollar (NT$)

 

GDP per capita

$35,513

Ease of Doing Business

15th in the world

Minimum Wage

NT$25,250 (US$818) per month

 

Average Wage

1,865 USD

Paid Leave

3-15+ days per year, depending on length of service

Taiwan (China): Business Environment

Business outlook in Taiwan

In recent years, the Taiwan economy has continued to impress against a global backdrop of COVID uncertainty with steady GDP growth (6.28% in 2021) and low unemployment rates. The forecast for GDP growth in 2022 is 4.15%. This positive business outlook is reflected in the island’s rising foreign direct investments, with a particular increase in investments from Japan and mainland China. In addition, the technology sector continues to thrive and make significant contributions to the overall economy.

Challenges facing the economy include an aging population, shortage of skilled labor, stagnant wages, reliance on key export sectors, and energy security issues. However, the government has launched an industrial innovation program to boost industries that are considered vital for future economic growth, including biomedicine, defense, green energy, the Internet of Things, and smart machinery.

Overall, the business outlook in Taiwan remains positive, with continued growth expected in key industries.

Business regulation in Taiwan

The Labor Standards Act, passed in 1984 and last amended in 2017, sets the legal framework for labor relations in Taiwan. It outlines basic employee rights and obligations, establishes minimum wage and overtime standards, outlines workplace safety regulations, and regulates various employment practices such as collective bargaining and dismissals. In addition to the LSA, the Employment Service Act and the Occupational Safety and Health Act also play a role in governing employment relations in Taiwan.

The Fair Trade Act in Taiwan aims to promote fair competition in the marketplace. This includes prohibiting any agreements or actions that prevent or restrict business dealings with others. The law also addresses misleading advertising and deceptive business practices, ensuring that consumers have access to accurate information when making purchasing decisions. The Fair Trade Commission is responsible for enforcing the Fair Trade Act and investigating potential violations. By promoting fair competition, the Fair Trade Act helps to create a thriving business environment and protect the rights of both businesses and consumers.

Business culture in Taiwan

The business culture in Taiwan is hierarchical, with seniority and age often determining power and authority. People in positions of authority are typically referred to by their titles and surnames rather than their first names.

Punctuality is important in the business culture of Taiwan, and meetings or appointments will usually start and end on time. Deadlines are also typically adhered to quite strictly. Business dress is typically formal, with suits being the norm for men and women dressing conservatively in skirts or pantsuits.

With a shared cultural heritage, many features of business culture in Taiwan are shared with practices in mainland China (read more about what motivates Chinese employees in our comprehensive guide)

Recruiting employees in Taiwan (China)

Recruiting employees in Taiwan – Overview

The most common way of finding candidates for your vacancy in Taiwan is to advertise on a job board. You can also approach employment agencies, which will usually charge a fee for their services.

The education system in Taiwan places a heavy emphasis on academic achievement and formal qualifications. As a result, job applicants will typically have impressive resumes listing their degrees and accomplishments.

The job interview process in Taiwan is usually quite formal, and you can expect your candidates to dress conservatively and be well-prepared. Questions will typically focus on the applicant’s qualifications and experience, as well as their motivation for wanting the job.

Most important recruitment tools in Taiwan

104 Job Bank

https://pro.104.com.tw/vip/preLogin/englishIntro

104 Job Bank is the largest online job search platform in Taiwan and is available in both English and Chinese language. It offers the largest resume database on the island.

Indeed

https://tw.indeed.com/

Indeed is one of the top choices for job seekers and employers in Taiwan. As one of the world’s leading job search websites, Indeed has a feature-rich platform that includes tools such as resume building and salary comparisons.

Careerjet

https://www.careerjet.com.tw/

Careerjet is a global job search engine that covers over 60 countries, including Taiwan. While not a jobs board itself, Careerjet indexes millions of jobs from thousands of websites.

Interviewing candidates in Taiwan (China) — Overview

The job interview process in Taiwan is usually carried out face-to-face. Candidates will typically dress conservatively and be well-prepared. Questions will focus on the applicant’s qualifications and experience, as well as their motivation for wanting the job.

It is also important to be aware of the Taiwanese concept of “saving face,” in which individuals prioritize maintaining a positive image and avoiding embarrassment. As a result, candidates may not give direct negative responses or criticism in an interview setting. However, this does not mean they are being dishonest; instead, they may approach challenges and conflicts with a focus on finding a solution rather than placing blame. Taking cultural differences into consideration can help to ensure a successful and respectful candidate interview process in Taiwan.

Can I ask the candidate’s previous salary in Taiwan?

It is not illegal to ask for a candidate’s previous salary in Taiwan, but it is generally considered bad practice.

What is the typical salary increase at a new job in Taiwan?

In Taiwan, the typical salary increase at a new job is 10-15%.

Onboarding employees in Taiwan (China)

Onboarding employees in Taiwan — Overview

When onboarding employees in Taiwan, employers should keep in mind cultural differences and expectations. Employees typically prefer a hierarchy in the workplace and may expect clear instructions and direction from their superiors.

It’s also important to consider the impact of interpersonal relationships on decision-making, as employees in Taiwan often prioritize harmony and avoiding confrontation. Another key aspect is processing new hires’ paperwork, including labor insurance and pension contributions. This process may be unfamiliar to foreign businesses, and it’s important to ensure compliance with local regulations.

Best remote working tools to use in Taiwan

Most standard remote working tools are commonplace in Taiwan as more and more people in Taiwan embrace remote work. One of the most essential is video calling software, with Zoom being a popular choice for both one-on-one meetings and large group conferences.

Holiday season in Taiwan – 2022

The main holiday season in Taiwan is the Chinese New Year, which usually falls between late January and early February. This is a time when people travel home to be with family, and businesses may close for extended periods.

Other important holidays include the Dragon Boat Festival in June, and the Mid-Autumn Festival, which usually falls in September or October.

For 2022, there are 12 public holidays:

1 January: New Years Day

31 January-04 February: Chinese New Year Holiday

28 February: 228 Peace Memorial Day

4 April: Children’s Day Holiday

5 April: Qing Ming Festival

1 May: Labor Day

03 June: Dragon Boat Festival

09 September: Mid-Autumn Festival

10 October: ROC National Day

Where public holidays fall on a weekend, the next weekday is considered to be the next available weekday.

 

What is the typical salary increase employees in Taiwan expect?

In 2021, the majority of employers offered a salary increase between 2% and 5% to existing employees.

Frequently asked questions (FAQ):

Deciding whether to hire freelancers or employees in Taiwan depends on a variety of factors, including the type and scope of your business, budget constraints, and your desired level of control. Hiring freelancers can be a cost-effective solution if you have specific short-term projects that require specialized skills. However, if you require consistent work with specific deadlines and need a high level of communication and collaboration, employees may be a better fit. Ultimately, hiring employees can be much more straightforward, especially when you work with a PEO partner like Horizon. We have expert understanding of Taiwanese Law and can help you successfully hire employees in Taiwan.

Limited companies are the most popular form of subsidiary in Taiwan. To establish a limited company subsidiary, you must apply to reserve your Taiwan subsidiary’s proposed Chinese name and business scope. You can register a foreign language name for your subsidiary if the name is set out in the subsidiary’s articles of incorporation. You will then need to apply for Foreign Investment Approval (FIA) with the Investment Commission (IC). After you receive approval, you must file with the local tax authorities and the Ministry of Economic Affairs (MOEA).

Hiring employees in Taiwan means opening a subsidiary, registering a branch, or using an Employer of Record (EOR) solution. If you’ve found a potential hire, get in touch with us for a free consultation and learn how we can help you hire your Taiwan team in the next 24 hours.

Hiring in Taiwan, Made Easy

Your business can easily hire employees in Taiwan without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 150+ countries worldwide. All you need to do is focus on your business.

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