Following the publication of ‘How to Start a Business in Taiwan’ in January 2013, we have continued our research and paid close attention to some changes made regarding policies and regulations, especially those related to foreigners and foreigner entrepreneurs in Taiwan.

The most noticeable addition we have in the newly released update includes a section on The Second Generation Health Care under the Insurance and Pension chapter. This new addition provides a comprehensive introduction of The Second Generation and explains how the fares are calculated under the implementation since 2013. From an employer’s point of view, now you need to pay attention to deductions made on bonuses, part-time salary, and the choice of salary brackets.

Another addition we have is on pension. Since January 2014, foreign spouses married to Taiwanese nationals are included in the Labor Pension Act. Now they can enjoy the same pension scheme as Taiwanese citizens. From an employer’s point of view, this means you have to contribute at least 6% of the employee’s monthly salary to a designated individual account established by the Bureau of Labor Insurance. The account stays with the employee if/when he leaves the company. For foreign employees NOT married to Taiwanese nationals, they have to be enrolled in the pension system as well, but under a totally different scheme. For them, your company has to set up a special account at Bank of Taiwan (臺灣銀行) and contribute at least 2% of their monthly to this account. They will not be able to claim the money unless they work for your company for 25 years or over the age of retirement. Leaving without meeting the requirements, he cannot enjoy the pension and the money goes back to the company.

A revision is made to Minimum Wage under the Employment Laws chapter. Starting from July, 1, 2014, the minimum salary for full-time employees is NT$19,273/month. For part-time workers, the minimum wage has also changed to NT$115/hour. Other minor changes include checking the book links and footnotes and see if the links are still valid and available for references. A few pieces of outdated information have been removed or revised as well.