Taiwan Minimum Wage to Increase in 2027: What Foreign Employers Need to Know
Effective January 1, 2027, Taiwan’s minimum wage will rise to NT$30,900 per month and NT$205 per hour. Announced by the Executive Yuan following its annual minimum wage review, the increase is expected to benefit more than 2.61 million workers nationwide.
This marks Taiwan’s 11th consecutive annual minimum wage increase since 2016. For employers, the change means reviewing payroll, statutory contributions, and employment budgets to ensure compliance with the new requirements.
Taiwan’s Minimum Wage Rates for 2027
The new rates represent an increase from the 2026 minimum wage levels.
Wage Type | 2026 | 2027 |
Monthly minimum wage | NT$29,500 | NT$30,900 |
Hourly minimum wage | NT$196 | NT$205 |
These statutory minimums apply to covered workers in Taiwan. Employers must ensure that wages meet the applicable minimum requirements from January 1, 2027.
How Will the Increase Affect Employer Costs?
The impact extends beyond employees’ salaries. Employers in Taiwan may also need to account for changes in statutory contributions, including:
Labor Insurance
National Health Insurance (NHI)
Labor Pension contributions, generally at a minimum of 6% of an employee’s monthly insured salary, where applicable
Because these contributions are calculated based on applicable salary or insured salary brackets, an increase in wages may also result in higher employer contributions.
The actual cost increase will depend on each employee’s salary, insurance eligibility,
applicable contribution brackets, and other relevant employment arrangements.
Are All Employees Entitled to a Pay Raise?
Not necessarily. The minimum wage increase does not automatically require employers to raise every employee’s salary.
Employers must ensure that covered employees receive at least the applicable statutory minimum wage. Employees whose wages already exceed the new minimum are not automatically entitled to a raise solely because the minimum wage has increased.
However, employers may wish to review their salary structures to maintain reasonable pay differences between entry-level and experienced employees and remain competitive in Taiwan’s labor market.
What Foreign Employers and Businesses Should Consider
For foreign-owned businesses and companies employing expatriates in Taiwan, the minimum wage increase is a useful opportunity to review existing employment arrangements and payroll practices.
1. Review employment contracts
Check whether salary terms comply with Taiwan’s updated minimum wage requirements. This is particularly relevant for employees hired under local employment contracts.
2. Reassess insurance and pension contributions
Review applicable Labor Insurance, NHI, and Labor Pension obligations for both local and foreign employees. Eligibility and contribution requirements may vary depending on the employee’s circumstances and employment status.
3. Evaluate overall payroll costs
Companies employing a mix of local and foreign professionals should consider the combined impact of salary adjustments and statutory contributions when preparing their 2027 budgets.
4. Maintain competitive compensation packages
Although many foreign professionals earn above the statutory minimum, employers should periodically review salaries, allowances, housing benefits, and other compensation arrangements to support recruitment and retention.
How Employers Can Prepare for January 2027
To prepare for the new minimum wage rates, employers should consider the following steps:
Review current salaries. Identify employees whose wages may fall below the new statutory minimum.
Update payroll calculations. Adjust applicable monthly and hourly wage rates and ensure the changes take effect from January 1, 2027.
Recalculate employment costs. Review the impact on applicable insurance premiums, pension contributions, and other employment-related expenses.
Update the 2027 budget. Account for potential cost increases, particularly if your business employs multiple minimum-wage or hourly workers.
Review employment arrangements. Check part-time schedules, overtime calculations, and relevant contract terms to ensure continued compliance with Taiwan’s labor regulations.
Why This Matters for Foreign-Owned Businesses
Taiwan’s employment costs include more than employees’ gross salaries. Statutory insurance premiums, pension contributions, and other employment-related obligations can significantly affect a company’s total payroll expenses.
For foreign business owners unfamiliar with Taiwan’s payroll and labor requirements, overlooking these costs can lead to inaccurate financial projections and compliance risks.
Understanding the full cost of employment helps businesses budget more accurately, manage cash flow, and plan for sustainable growth in Taiwan.
Final Thoughts
Taiwan’s new minimum wage rates of NT$30,900 per month and NT$205 per hour will take effect on January 1, 2027. Employers should review their payroll arrangements, statutory contributions, and operating budgets in advance to ensure a smooth transition.
Del Sol CPA & Associates provides bilingual tax and business advisory services for foreign entrepreneurs, expatriates, and international businesses in Taiwan. We can help you understand payroll-related costs, assess tax and compliance considerations, and plan for your business’s continued growth.
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