First post on Forumosa – renshi nimen wo hen gaoxing
So, I’ve been trying to figure out the answers to two intertwingled questions:
How much is (or legally should be) deducted from the salary of a local employee, and
How much does the employer pay on top of the salary?
For 1), there appear to be three deductions…
[ul]
[li]National Health Insurance. The total rate is 4.55%, of which 30% is borne by the employee (so avg 1.36% of salary), but the actual premium varies based on the number of dependents.[/li]
[li]Labor Accident Insurance (5.5%) and Employment Insurance (1%), of which 20% is paid by the employer, or 1.3% of salary[/li]
[li]Income tax, discussed in gruesome detail eg. here and here elsewhere, so I’ll just say 13%[/li][/ul]
For 2), the employer’s typical shares for NHI and LI/EI are 60% and 70%, so we should get 2.73% and 4.55%… although the precomputed table here suggests around 4.5% for employer’s NHI instead, for a total employer burden of around 9%, so I’ll stick with the table for the calculations below.
Putting that all together, assuming a single guy with no dependents and a nice round salary of 100,000 NTD/month, who works for a full year in Taiwan starting January 1st 2010 and squeaks into the 13% tax bracket after deductions, we’d have:
Employer pays:
100,000 gross salary + 4483 NHI + 4550 LI/EI = total cost of compensation 109033/month
Employee gets:
100,000 gross salary - 1319 NHI - 1300 LI - 13,000 tax = net salary 84381/month
Are my figures in the ballpark, or am I missing something important?
Neither – I’m considering moving to Taiwan, and I’d like to know my employer’s real cost of employing me, plus how much of any offered paycheck I’ll actually get.
Deductions depend on 1) how long you’ve been in the country and 2) how much you make.
Technically, for the first 6 months of each year, 20% of your income is supposed to be withheld for tax. After 6 months, the rate drops to 6%. The annual rate you pay when you file your taxes will depend on your total annual income and you pay the difference or claim a refund, which usually takes 8+ months to get.
May I ask what field you are in? 100,000/month is pretty high for most people I know here, at least in declared income.
The amount withheld for the NHI is negligible. I checked my last couple statements and it was NT$414/month each time.
Well, then just figure on 20% withholding the first 6 months of every year, 6% withholding the second 6 months and then an average annual tax rate of about 6%
NHI for an individual must just be NT$414, because that is what’s always taken out of my pay regardless of what i make.
