Understanding Salary Deductions for Overseas Filipino Workers in Taiwan
When working in Taiwan, it’s important to understand the salary deductions that apply to all foreign workers. These deductions are mandated by law and help fund social insurance and welfare programs. Other fees, meanwhile, are collected by the broker or agency handling your employment.
Below is a breakdown of the typical deductions from your monthly salary:
🇹🇼 Government-Mandated Deductions
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Welfare Fund: NT$100 – NT$230
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Health Insurance: NT$500 – NT$700
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Labor Insurance: NT$800
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Income Tax: NT$1,000 – NT$1,500
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Dormitory / Meal Fee: NT$0 – NT$6,000 (depending on company policy)
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Broker’s Fee: NT$1,800 (1st year), NT$1,700 (2nd year), NT$1,500 (3rd year)
🩺 Note:
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Health insurance and income tax depend on your net monthly salary.
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Dormitory and meal fees may vary—some companies provide free accommodation or meals.
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Broker’s fees decrease each year of employment.
💳 Other Yearly Payments
In addition to monthly deductions, you may also need to pay:
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NT$1,000 per year for your Alien Residence Card (ARC)
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NT$900 – NT$2,000 for medical examinations (usually four times within three years)
While these deductions may seem significant, many companies in Taiwan offer overtime pay, allowances, and bonuses, which can help increase your overall earnings.
Working in Taiwan can be rewarding, especially when you understand how your salary is structured and what each deduction is for.
