Taiwan Stresses Compliance for Employers Enforcing Overtime Laws

Reports from September 2023 indicate a call for employers in Taiwan to adhere to legal overtime payment protocols following a substantial surge in fines related to such infringements last year.

The country’s Labour Ministry disclosed that businesses faced total fines amounting to NT$62 million in 2022 due to violations of overtime regulations, according to Taiwan News.. 

The prevalent labor violations included instances where employers exchanged extra leave for overtime work instead of appropriately compensating their staff, as well as cases of underpayment for overtime hours.

Taiwan Labour Standards Act – Overtime Laws Mandates:

• Employees are entitled to an extra one-third of their regular hourly wage If overtime doesn’t exceed two hours. 
• Employees should receive at least two-thirds of their regular hourly wage plus their regular hourly wage for overtime spanning two to four hours.
• Overtime compensation is calculated based on their total monthly salary divided by the employee’s regular working hours.
• Bonuses that are part of the employee’s wage should be included in the total monthly salary.
• Working on rest days is considered overtime, requiring employers to provide additional compensation for such hours.