Global Compliance Desk – Taiwan

Taiwan: 2024 Lunar New Year Holidays and Pay Requirement

Following New Year’s Day, the next upcoming public holiday in Taiwan will be the week-long Lunar New Year holiday from February 8th to February 14th. The Taiwanese Government released the official holiday calendar earlier this year. 

The Lunar New Year holidays are made up of three different types of holidays, which the law defines as national holidays, regular holidays, and rest days.

In 2024, the Lunar New Year Holiday shall be observed and segregated among the types of holidays in the below manner –

• • • Feb 8th shall be considered a Rest Day. 
    • Feb 10th & 11th shall be considered a Regular Holiday.   
    • Feb 9th, 12th, 13th & 14th shall be observed as National Holidays.

Additionally, if the Lunar New Year’s Eve falls on a regular holiday, the holiday will be observed on the next working day.

Pay Requirement – Employees shall be paid for work on the Lunar New Year Holidays as per the Labor Standard Act pay requirements.

• • • If employees are required to work on rest days, the law states overtime pay is 1.33 times the regular wage for the first two hours, and 1.66 times the regular wage for hours over that. 

One of the Lunar New Year Holidays falls on a rest day i.e. February 8th, which is a rest day. If the employee is required to work on this day, the employee shall be paid according to the rest day pay requirement i.e. 1.33 times the regular wage for the first two hours, and 1.66 times the regular wage for hours over that. The employee shall be given a choice between compensatory time off or receiving payment for overtime work. 

• • • If an employee works on a national holiday, they shall be paid double the regular wages for such work.  

Lunar New Year Holidays on February 9, 12, 13, and 14 are national holidays. If an employee is required to work on these days, the employee shall be entitled to double pay. 

• • • If an employee works on a regular holiday they shall be paid double the regular wages for the work performed. 

Lunar New Year Holiday on February 10th & 11th shall be treated as a regular holiday. If an employee is required to work on these days they shall be entitled to double pay. The employee shall be given a choice between compensatory time off or receiving payment for overtime work. 

Overtime Pay Requirement – Employees shall be paid for overtime work on the Lunar New Year’s Day as per the Labor Standard Act pay requirements.

• • • National Holiday – In case, the overtime work does not exceed 2 hours, the employee shall be paid, in addition to the regular hourly wage, at least an additional 1/3rd (1.33) of the regular hourly rate. In case, the overtime work is over 2 hours, but the total overtime work does not exceed 4 hours, the employee shall be paid, in addition to the regular hourly wage, at least an additional 2/3rd (1.67) of the regular hourly rate.  
    • Regular Holiday & Rest Day – Employees who perform overtime on a Regular Holiday or Rest Day shall be entitled to 1.33 times the regular wage for the first two hours, and 1.66 times the regular wage for hours over that.

 

Takeaway – Employers should make sure to provide the employees with the required holidays for the approaching Lunar New Year Holidays and if employers require the employees to work during the holidays, they should provide the increased pay as per the Taiwan Labour Regulations. Failing to adhere to the pay requirements may result in a fine between NT$20,000 and NT$1 million (about NT$640 to NT$32,000).