Taiwan’s 2026 Labor Overhaul: Higher Pay, Better Leave, Later Retirement

2025-12-23 17:46
Taiwan's legislature approved several new labor laws before recess. (Photo / Wu Yi-hua)
Taiwan's legislature approved several new labor laws before recess. (Photo / Wu Yi-hua)

Several new Taiwanese labor laws are set to come into effect in 2026, impacting workers.

The most significant change is adjusting the age at which pensions may be claimed to 65 for those born in or after 1962. Early claims can be made up to five years in advance, or from age 60, but involve a 4% reduction per year, reaching a maximum of 20% for the full five years.  

Theannual minimum wage increase will also be raised to NT$29,500 per month, a cumulative increase of almost NT$10,000 since 2016. While wages will rise, this change will impact labor insurance premium brackets, overtime pay, and some salary-based calculations. (Related: Japanese Ruling Party Lawmakers Visit Taiwan Amid Stalled Relations with China Latest

Parents will be able to apply for parental leave up to 30 days per year while still receiving 80% of their salary. Workers will also be entitled to 56 hours each of family care and personal leave annually without employer obstruction. Clearer rules based on proportional deduction also prevent bonuses from being unjustly withheld due to sick leave, with the given amount being divided by the total number of days in a given month to arrive at the maximum deduction amount. 

You've read it. Now let's talk. Follow us on X.    Editor:  Chase Bodiford



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