Overview of Taiwan, Province Of China

Taiwan is a small island nation in the Pacific Ocean. The official name is “Republic of China”. The capital as well as the political, cultural and economical center of Taiwan is Taipei. The official language of Taiwan is Chinese, but many prefer to speak Taiwanese or Hakka. Taiwanese still write using the traditional Chinese characters. Taiwan was the first Asian nation to be a democratic republic. It has a population of 23.7 million, which makes it one of the most densely populated countries in the world. The last 50 years have been of great economic growth for Taiwan. The skyscraper known as Taipei 101 was the highest building in the world until 2007.

When meeting potential business partners for the first time, dress formally. Clothing should always be neat, clean and unwrinkled. It is polite to ask about someone’s family, as the family is central in Taiwanese culture. Taiwanese will greet people by shaking their hand, but it is not as firm as in the West, and they will look at the ground out of respect. Relationships are highly valued, and so part of a meeting will be spent on getting to know one another. Taiwanese are very polite and take care to “keep face”.

Currency of Taiwan, Province Of China

New Taiwan dollar

Health Insurance and the Social Security system of Taiwan, Province Of China

In 1995, a national health insurance system was introduced in Taiwan. It is mainly funded by a percentage of the employee’s salary, taken directly from the source. The benefits include inpatient and outpatient care, mental health care, prescription drugs, dental care, Chinese medicine, dialysis, and day care for the elderly. Every participant receives an NHI IC card. On this, the name of the person and a brief medical history are stored and the card is used to bill the national insurer.

Employer cost of Taiwan

The cost for an employer to hire someone in Taiwan is a plus of 18.25% to the gross salary.

Salary and bonuses of Taiwan

Employees who work on a wage are paid monthly.

A 13^th monthly wage in not required by law, but is customary.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in Taiwan

January 1^st – Founding of the Republic of China (New Year’s Day)

Last day (29th/30th day) of the 12th month (per Chinese calendar) – Eve of Chinese New Year

First 3 working days of the 1st month (per Chinese calendar) – Chinese New Year

February 28 – Peace Memorial Day

April 4 – Children’s Day

15th day after the Spring Equinox – Tomb Sweeping Day

5th day of the 5th month – Dragon Boat Festival

15th day of the 8th month – Mid-Autumn Festival

October 10^th – National Day

Working Hours in Taiwan

Office hours are from 9:00am till 6:00pm, Monday till Friday. Many offices are also on Saturday, where an employee can work on a flexible schedule.

A regular work week is 40 hours.

Overtime may not exceed 46 hours in a month and working hours may not exceed 12 hours a day. The first 2 hours of overtime in a day are paid with 134% and the next 2 are paid with 167% of the regular wage.

Vacation in Taiwan

In Taiwan, the amount of vacation days an employee receives is based on their years of service with the company:

• less than 6 months – 3 days vacation

• more than 6 months but less than 2 years – 7 days vacation

• more than 2 years but less than 3 years – 10 days vacation

• more than 3 years but less than 5 years – 14 days vacation

• more than 5 years but less than 10 years – 15 days vacation

• an additional day for each year of service that exceeds 10 years, with a maximum of 30 days

Sick Leave in Taiwan

When an employee is sick in Taiwan, he/she is entitled to 30 days of sick leave in a year. The employee is entitled to 50% of his/her pay during this time. If the Labor Insurance payments do not reach the 50%, the employer pays the difference.

If an employee is hospitalized, he/she can take 1 year of leave within a 2 year period.

Termination/Severance in Taiwan

When terminating an employee in Taiwan, several reasons can be used: the employer’s business has been suspended, operating losses have been suffered by the employer, when a reduction of workforce is necessary due to a change of the business, when the employee is unable to perform the duties expected of him.

Notice must be given to the employee. The notice period depends on the length of time, an employee has been in service:

• Employed for more than 3 months, but less than 1 year – 10 days’ notice.

• Employed for more than 1 year, but less than 3 years – 20 days’ notice.

• Employed for more than 3 years – 30 days’ notice

Severance pay is paid and is equal to one month’s wage for each year of service. If the employee has been with the company for less than one year, it is calculated accordingly.