it costs extra if the company has to pay someone to replace you.
the 50% deduction means they still pay you something, and the better work places pay you 100% of the sick leave up to a certain number of days.
so let’s say you make 500 nt an hour, if you miss a 40 hour week the employer has to pay your replacement 20,000nt and pay you 10,000, total cost to the employer is 30,000.
if no one is brought in to replace you, you still get paid, but you didnt contribute anything to the business, so even if there is no extra cost there is a loss of revenue .
Loss of revenue shouldn’t be included when calculating the cost to employer.
However, it was my mistake for having framed the question as white collar employee. For blue collar and teachers, it may be different.
for white collar employees the costs are mainly health and labor insurance, pension and severance pay, vacation days and in the case of expats also housing and tuition, car allowance (though that is a perk not common in Taiwan ), flights home etc.
I know for a fact that for you to be worth it for the employer to hire you, you have to help the employer make 3 times your wage. So if your yearly salary is 700k NT, you must help your company make 2.8 million NT per year for them to continue hiring you.
1 part is your wage, 1 part is the cost (payroll tax, admin cost, etc.) and 1 part for the profit so they would see a point in employing you.
1 Like
What do you guys mean by tax?
Normally the person pays income tax but that is a cost of the employee, deducted from their pay. I dont think employers are paying extra tax on your wage are they?
Paid leave (statutory holidays, annual leave, sick leave up to a certain amount, etc.) is part of the salary. Paid maternity/paternity leave (8 weeks/1 week respectively) is also salary, but unpaid parental leave obviously is not.
Severance pay can be avoided by hiring on a term (not permanent) basis, not laying the employee off, and not committing a serious contract/labor law violation that inspires the employee to quit.
This is a very quick summary of benefits for private sector jobs covered by the Labor Standards Act (in which case the employee is a “worker”). Some of the benefits are set by the gender equality law, whatever it’s officially called, so you don’t need to be a “worker” to get those.
Some LSA jobs do not have all the benefits (see Art. 84-1), but that’s another story.
Once again, yes buxiban teachers are covered, yes some private school teachers are covered, no other teachers are not covered.
What the employee’s absence during holidays actually costs the employer cannot be assumed. If the business is closed anyway, there’s obviously no need to replace the employee. If a vacation improves the employee’s health resulting in fewer sick days, that’s likely to be of benefit to both parties. And so on…
2 Likes
they are paying for national health insurance and labor insurance, you pay part of it (deducted from your salary) and they part of it directly to the gov.
there might also be other taxes which we are not aware of…in my home country for example there is a special foreign worker tax, if you hire a foreigner, the employer need to pay a 20% tax, this is done to encourage the hiring of locals…
Oh ok. I read it wrong. Though i dont think insurance pension etc is a tax per se. But the employee and/or employer is being taxed as far as losing money by an authorities request.
Taiwan has a higher income tax for foreigners too i believe. At least in the beginning, but not exactly how that works. It reverts back to normal after xx timeor different visa or something…
Strangely i just got taxed 20% for being a foreigner here doing a government project on an aprc and open work rights. But think it was their accountant not knowing. Was very little money so didnt bother pushing it but it happens all the time here too.
The tax rate differs by residency, not citizenship, and it’s residency for tax purposes, not for immigration purposes. Iow, you can have an ARC but still be taxed at the non-resident rate or vice-versa. It comes down to how many days you spend in Taiwan during the calendar year (Jan-Dec). We have several threads explaining the details.
Thats why i was surprised. This year necer left taiwan, last year for 2 weeks. All my other works gets the regular tax bracket %. No biggie for me it was virtually volunteer work. More just to get my name registered on their system.