Mandatory employee benefits in Taiwan include a comprehensive social security system covering retirement, survivors, sickness, health, employment injury and disease, unemployment, and family benefits. Participation in social security programs is compulsory for employees and voluntary for others. Employers recognize the need for supplementary employee benefits in Taiwan and perks; however, housing allowances, flexible spending accounts, and savings plans are not standard in the country.

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Mandatory Benefits

Taiwan’s social security schemes include the following:

  • Labor Insurance (LI) – maternity, injury or sickness, disability, old age, and death benefits.
  • Employment Insurance (EI) –Unemployment benefits are separate from LI, and EI has its own legal foundation.
  • National Health Insurance (NHI) – Covers all medically necessary services, including inpatient, outpatient, dental, traditional Chinese medicine, and nearly 20,000 prescription drugs. Contributions come from the employee, employer, and the government.
  • Labor Pension Act (LPA) – Employers must contribute to the central labor pension fund, which is portable when an employee changes jobs.

Supplementary Benefits

Common insured group benefits include the following:

  • Death Benefit – usually is term life, or accidental death and dismemberment
  • Critical Illness – covers 7 kinds of critical illness
  • Medical Insurance –coverage can be for accidental medical (AMR), hospital & surgical (H&S), and cancer indemnity
  • Occupational Hazard –covers the gap between the Labor Standard Act
  • (LSA) and labor insurance (LI). When work-related incidents occur, LSA states that the employer has a certain liability, calculated with the employee’s actual salary.


Taiwanese employers offer a variety of perks to their employees and include:

  • Car and transportation allowances
  • Meal allowances or subsidized eating facilities
  • Mobile phone
  • Employee loans (rare)
  • Services awards
  • Education allowance
  • Shopping discounts


WISE provided this information about employee benefits in Taiwan. If you need support with your benefits in the country, contact Asinta, and we will put you in touch with the experts at WISE.