Foreign employers managing Taiwanese teams must understand local holiday pay regulations to ensure compliance and maintain employee satisfaction. Taiwan enforces strict labor laws covering holiday entitlements, compensation obligations, and make-up workdays.
Types of Holidays in Taiwan
Taiwan recognizes two official holiday categories:
National Holidays — Double Ten Day, Lunar New Year, and others requiring mandatory paid time off. Employees receive their regular wage without working.
Make-up Working Days — Compensatory workdays scheduled on Saturdays to create longer holiday breaks. These are mandatory work days despite falling on weekends.
Overtime on Holidays
If employees work on national holidays, compensation follows this structure:
- First 2 hours: 1.33x hourly wage
- 3rd hour onward: 1.66x hourly wage
Important: Employers must obtain advance employee consent for holiday work and notify local labor offices where required.
Substitute Holidays
When national holidays fall on weekends, the government announces substitute days. The Ministry of Labor publishes an official schedule each year.
Action required: Follow the official schedule and communicate changes promptly to staff. Don’t assume holidays will shift automatically—verify and announce.
Pro-Rated Holiday Pay
Part-time and foreign national employees receive pro-rated holiday compensation based on actual working hours, provided they work under local employment contracts.
Calculate entitlement proportionally:
- A part-time employee working 50% hours receives 50% of holiday pay benefits
Record Keeping
Maintain documentation for labor authority inspections:
- Paid holiday logs
- Overtime payment records
- Make-up day arrangements
- Employee consent forms for holiday work
Taiwan’s labor authorities conduct audits. Proper documentation protects against penalties and disputes.
Summary
Proper holiday pay administration requires:
- Understanding the two holiday types
- Calculating overtime correctly
- Following official substitute day schedules
- Pro-rating for part-time employees
- Maintaining audit-ready records
Get these right, and you build employee trust while staying compliant.