Taiwan Severance Pay (資遣費) Explained: How It Is Calculated
How Taiwan severance pay works under the Labor Pension Act: half a month of average wage per year of service, capped at 6 months, with a worked example.
How much is severance pay?
Under the new labor pension system, severance is half a month of average wage for each full year of service, prorated for partial years, and capped at 6 months of average wage.
What is the average wage?
It is the average of the wages earned in the 6 months before termination, so regular allowances and overtime may be included.
Worked example
With an average wage of NT$50,000 and 5 years of service: 5 × 0.5 = 2.5 months, so 2.5 × NT$50,000 = NT$125,000.
Related entitlements
Notice-period pay and unused annual leave are separate from severance. Check the official Ministry of Labor guidance for your case.
Use the calculator
Enter your average wage and years of service in the AnyTool severance pay calculator for an instant estimate.