Taiwan Labor Ministry Reveals Top 6 Wage Violations, Overtime Shortfalls Cost Employers Over NT$100 Million

Taiwan's Ministry of Labor has highlighted six prevalent types of wage violations committed by employers over the last year, emphasizing that non-compliance can lead to significant penalties. The most common infraction, failure to properly calculate and pay overtime wages, resulted in 2,159 cases and fines totaling NT$103.461 million.

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Employers must not arbitrarily deduct wages or pay less than stipulated. Wages must be paid in full and directly to the employee.

Other significant violations include failing to meet the minimum wage standard, not paying wages on time, arbitrarily deducting wages, not providing detailed wage payment breakdowns, and failing to pay double wages for work on national holidays. The ministry warned employers against complacency, noting that violations can incur fines up to NT$1 million and result in the public naming of the offending business entities.

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Wages should be paid at least once a month. Employers cannot unilaterally change payment methods or delay payments, especially around holidays or upon employee resignation.

Regarding overtime pay, the ministry clarified that it must be calculated based on the base salary plus any non-fixed bonuses like full attendance incentives or night shift allowances. Simply multiplying the base salary by a factor is insufficient. Overtime calculations must be precise, including minutes worked, and employers cannot refuse payment for fractions of an hour. For work on holidays, employees must receive double pay for up to 8 hours, with additional overtime rates applying beyond that.

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For work on national holidays, employers must obtain employee consent and pay double wages for up to 8 hours, with additional overtime rates applicable thereafter.