Taiwan Eases Expat Worker Rules

by Mary Swire, Tax-News.com, Hong Hong

25 January 2012

A revision to the Employment Services Act passed by Taiwan’s parliament has not only extended the maximum number of years that foreigners may work in Taiwan from nine to twelve years, but also lowered the fine for late payment of their employment stabilization fees.

In Taiwan, employers of blue-collar workers, including domestic help, employees in manufacturing industry and labourers on construction projects, must pay an employment stabilizing fee for each foreign worker of between TWD600 (USD20) and TWD10,000 per month, to promote employment for Taiwan citizens.

While it has extended the maximum number of a foreign worker’s accumulated working years from nine to twelve years, the Legislative Yuan, on January 19, also lowered the fine for a late payment of employment stabilization fees from 1% to 0.3% of the fee for every day of delay, and the fine will be capped at 30% of the fees due.

It was pointed out that the extension of the foreigners’ working years could reduce the incidence of training costs and brokerage fees, as well as improving employees’ work experience and efficiency.

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