Taiwan Severance Pay Calculator (資遣費): New and Old Systems
Calculate severance pay in Taiwan: half a month's average wage per year under the new system, up to 6 months, one month per year under the old one, and notice.
Severance pay is due when the employer ends the contract for the reasons in article 11 of the Labor Standards Act, such as closure, losses or a job you cannot do; not when you resign or are dismissed for misconduct.
What it does
Since 1 July 2005 most workers in Taiwan are under the new labor pension system, which pays half a month of average wages for each year of service, part years in proportion, up to 6 months. Years worked before the switch that stayed under the old system get one month per year under the Labor Standards Act. The average wage is the total pay of the 6 months before the end of the contract divided by 6. The employer must also give 10, 20 or 30 days of notice depending on seniority, or pay the wages for those days.
How to use it
- Type the average monthly wage of the last 6 months.
- Type the years, months and days under the new system and, if any, the years under the old one.
- Read the severance pay, the months of wages and the notice period.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much severance after 5 years and 6 months on NT$50,000?
5.5 years × 0.5 = 2.75 months, NT$137,500. The notice is 30 days, worth NT$50,000 if the employer does not give it.
Is there a maximum?
Yes, under the new system 6 months of average wages, reached after 12 years: with NT$50,000, 15 years still give NT$300,000.
And with years under the old system?
They count one month per year: 4 years and 6 months before July 2005 give 4.5 months, plus 1.5 months for 3 new-system years, NT$300,000 with NT$50,000.
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