Taiwan severance pay calculator

Under Taiwan's new labour pension system, severance pay is half a month's average wage for each year of service, pro rata for part of a year, up to 6 months: 3 years at an average wage of NT$40,000 gives NT$60,000. Service kept under the old system adds 1 month a year.

Enter the details

The average wage is the total wages in the 6 months before the termination divided by the number of days in that period (Labor Standards Act, Article 2). Enter it as a monthly amount. The Ministry of Labor also accepts the total wages for the 6 months divided by 6.

Service under the new pension system

Service from 1 July 2005, or after you chose the new system.

years
months
days

Service under the old pension system (optional)

Service before 1 July 2005 that you chose to keep under the old system.

years
months
days

Result

Please complete the details. The result will appear here.

How it is calculated

  1. New pension system: half a month's average wage for each full year of service, pro rata for part of a year, up to 6 months (Labor Pension Act, Article 12). Following the Ministry of Labor's example, days are counted as 30 to a month: service = years + (months + days ÷ 30) ÷ 12.
  2. Old pension system: one month's average wage for each full year. Remaining months, or service under a year, are paid pro rata, and part of a month counts as a full month (Labor Standards Act, Article 17). There is no upper limit.
  3. Average wage: the total wages in the 6 months before the termination divided by the number of days in that period (Labor Standards Act, Article 2, item 4).
  4. Severance pay = new system + old system. It must be paid within 30 days after the employment ends.
  5. All calculations are done in your browser. The details you enter are not sent to any server.

Worked examples

3 years under the new system, NT$40,000 average wage

Details
NT$40,000
Result
Severance pay NT$60,000

5 years 6 months under the new system, NT$45,000

Details
NT$45,000
Result
Severance pay NT$123,750

3 years 6 months 15 days, NT$30,000 (Ministry of Labor example)

Details
NT$30,000
Result
Severance pay NT$53,125

15 years under the new system: capped at 6 months

Details
NT$60,000
Result
Severance pay NT$360,000

2 years 3 months 10 days under the old system plus 10 years under the new

Details
NT$50,000
Result
Severance pay NT$366,667

Official sources

Applies to: Current (Labor Pension Act, Article 12; Labor Standards Act, Articles 2 and 17, as amended on 31 July 2024).

  1. Ministry of Labor: Severance pay under Article 12 of the Labor Pension Act (press release, in Chinese)
  2. Ministry of Labor: Severance pay under the new pension system: method and example (in Chinese)
  3. Ministry of Labor: Labor Standards Act (in Chinese)

Last reviewed on October 27, 2026.

The rules on this page have been checked against the official sources listed above. The result is for reference. The rules and assessment of the concerned authority shall prevail.