Taiwan Payroll and Statutory Updates 2026: Tax & Insurance

Taiwan has introduced several important statutory changes effective January 01, 2026. These updates affect payroll processing, tax withholding, labour insurance, health insurance, pensions, and overall employee cost planning. Below is the consolidated overview across six key areas:

1. Revision to the Annual Salary Income Withholding Table (2026)

The Ministry of Finance has released the revised Annual Salary Income Withholding Table, with following major changes

• The monthly salary income withholding limit has increased from NT$88,500 to NT$90,500.
• This change impacts payroll withholding calculations across all dependent categories.

Can we give impact of this change like monthly or annual tax liability on salary income reduced from so to so amount?

2. National Health Insurance (NHI) Grade Table 2026

Taiwan’s National Health Insurance Administration has published the updated NHI premium grade table as under:

Rates should be given.

Payroll premium brackets continue to determine the insured salary used for both employee and employer contributions.

3. Part-Time Labour Insurance Grade Table 2026

The 2026 Part-Time Labour Insurance grade table defines salary brackets used to calculate labour insurance contributions for part-time employees.

Detailed grade structures, including levels for part-time and low-wage categories, are available through workforce and labour authorities.

4. Revision to National Tax Brackets and Deductions

How is this different from point 1 above. If this is also related to tax withholding, can both the points be clubbed?

The National Taxation Bureau of Taipei has released updated progressive income tax rates for 2026:

• Up to NT$610,000 → 5%
• NT$610,001 – NT$1,380,000 → 12% (less NT$42,700)
• NT$1,380,001 – NT$2,770,000 → 20% (less NT$153,100)
• NT$2,770,001 – NT$5,190,000 → 30% (less NT$430,100)
• Above NT$5,190,001 → 40% (less NT$949,100)

5. Increased Exemptions and Deductions for 2026

Tax exemptions and deductions have been increased for 2026 as under:

• Personal exemption: NT$101,000 (should we give older values also?)
• Exemption Parents aged >=70 years: NT$151,500
• Standard deduction (Single/Divorced/Widowed): NT$136,000
• Standard deduction (Married): NT$272,000
• Special deduction (Salaries/wages): NT$227,000
• Special deduction (Disabled and Handicapped): NT$227,000

6. Revised Insurance and Pension Tables 2026

Several social security components have been revised including labour insurance, occupational accident insurance, NHI, pension contributions, and employment insurance. Is this point not related to points 2 and 3 above?

Labour Insurance (2026)

• Salary cap minimum: NT$29,500
• Total contribution rate: 11.5%

Occupational Accident Insurance

• Salary cap minimum: NT$29,500
• Total contribution rate: (0.12% to 0.96%)

7. Labour Pension (New System)

• Salary cap minimum: NT$29,500
• Total contribution rate: 6%

Policy Changes Affecting Pension Coverage

• Defined-contribution pension coverage under the Labour Pension Act is extended to foreign professionals.
• Defined-benefit pension contributions become mandatory for long-serving foreign manual workers starting April 01, 2026.

Compliance Updates Summary

Conclusion:

The Taiwan Payroll and Statutory Updates 2026 introduce important changes across payroll withholding, income tax, National Health Insurance (NHI), labour insurance, pension contributions, and the monthly minimum wage, which increases from NT$28,590 to NT$29,500. These updates affect employee cost planning, payroll calculations, and statutory contributions for labour insurance, employment insurance, occupational accident insurance, and pension systems.

Employers and compliance leaders in Taiwan should carefully review payroll systems, update processes, and ensure full alignment with the revised regulations to maintain compliance. Stay informed and access the latest guidance through our Taiwan Compliance Portal for continuous updates and detailed insights.