Cost of an employee in Taiwan (2026)
What an employee really costs an employer in Taiwan: gross salary plus mandatory employer social contributions.
On a gross salary of NT$47,884 per month in Taiwan, an employer pays about NT$56,024 in total once mandatory employer social contributions of 17% on top of the gross are included.
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How salary is taxed in Taiwan
Income tax in Taiwan is progressive: marginal rates rise from 5% to 40% as income grows.
Employees also pay social contributions of around 4.5% of gross salary.
A tax-free allowance of about NT$228,000 per year is deducted before income tax.
The standard VAT rate is 5%.
| Annual taxable income | Tax rate |
|---|---|
| Up to NT$590,000 | 5% |
| Up to NT$1,330,000 | 12% |
| Up to NT$2,660,000 | 20% |
| Up to NT$4,980,000 | 30% |
| NT$4,980,000 and above | 40% |
Frequently asked questions
What does it cost to employ someone in Taiwan?
On top of the gross salary, an employer in Taiwan pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026