Statutory annual paid leave days in Taiwan are calculated according to seniority under Article 38 of the Labor Standards Act: 3 days for 6 months of service, 7 days for 1 year, 10 days for 2 years, 14 days for 3 years, 15 days for 5 years, plus 1 additional day for each year beyond 10 years, up to a maximum ceiling of 30 days; unused leave days upon year-end or employment termination must be converted into statutory cash wages by the employer. In principle, leave scheduling dates are designated by the worker; companies may agree with employees to calculate entitlement intervals via the "anniversary system" or "calendar year system", but may not reduce statutory entitlements, and termination settlements must strictly revert to the hire date (anniversary system). For monthly salaried workers, daily wage conversion equals normal working time wages of the most recent month divided by 30, multiplied by unused days.
Notice: This guide is summarized from the Labor Standards Act (amended July 31, Year 113 / 2024) and Enforcement Rules of the Labor Standards Act (amended March 27, Year 113 / 2024) on the Laws and Regulations Database, verified current as of October 22, Year 115 / 2026 without subsequent amendments to Article 38. Leave calculations and calendar year conversions fall within the statutory purview of the Ministry of Labor; individual cases are subject to determinations by the Ministry of Labor, Taipei City Department of Labor, and New Taipei City Labor Affairs Department. Parental leave without pay periods are excluded from seniority unless agreed otherwise by labor and management, deferring entitlement vesting dates accordingly.
Seniority Leave Days Comparison Table
Article 38, Paragraph 1 of the Labor Standards Act provides that when a worker continues in service for the same employer or business entity for specified periods, they are entitled to the following annual paid leave:
| Seniority | Annual Leave Days | Statutory Basis |
|---|
| 6 months or more, under 1 year | 3 days | Subparagraph 1 |
| 1 year or more, under 2 years | 7 days | Subparagraph 2 |
| 2 years or more, under 3 years | 10 days | Subparagraph 3 |
| 3 years or more, under 5 years | 14 days each year | Subparagraph 4 |
| 5 years or more, under 10 years | 15 days each year | Subparagraph 5 |
| Full 10 years | 16 days | Subparagraph 6: 1 additional day per year over 10 years |
| Full 15 years | 21 days | Extrapolated under Subparagraph 6 |
| Full 20 years | 26 days | Extrapolated under Subparagraph 6 |
| Full 24 years or more | 30 days (maximum ceiling) | Subparagraph 6: capped at 30 days |
How seniority is calculated: Article 5 of the Enforcement Rules of the Labor Standards Act specifies that length of service is limited to service within the same business entity, starting from the employment commencement date. The Ministry of Labor explains that if a worker remains employed on the day following the completion of a requisite service milestone, the right to take annual leave vests immediately. An official Ministry of Labor example: an employee hired on March 1, Year 110 (2021) who resigns on April 1, Year 111 (2022) is entitled to both the 3-day leave for 6 months of service and the 7-day leave for 1 year of service, totaling 10 days; the 7 days for completing 1 year cannot be prorated down merely due to mid-year resignation. As for the additional 1 month of odd seniority, because it does not satisfy the requirement for another full year, the employer is not legally required to grant additional leave.
Who Schedules Leave? Can Employers Dictate Dates?
- Labor Standards Act Article 38, Paragraph 2: Annual leave scheduling dates are designated by the worker; employers facing urgent operational necessities or workers with personal reasons may negotiate mutual adjustments.
- Labor Standards Act Article 38, Paragraph 3 and Enforcement Rules Article 24, Paragraph 3: Employers must inform workers that they may schedule their annual leave within 30 days of meeting statutory leave conditions.
- Ministry of Labor guidelines: Employers cannot restrict workers to scheduling leave only on designated company dates; leave application procedures follow workplace rules or employment contracts.
- Labor Standards Act Article 39: Annual leave wages are paid in full by employers; if employers secure worker consent to work during statutory leave days, wages must be doubled.
- Labor Standards Act Article 38, Paragraph 6: When workers claim annual leave rights, if an employer contends the right does not exist, the employer bears the legal burden of proof.
Converting Between Anniversary and Calendar Year Systems
Article 24, Paragraph 2 of the Enforcement Rules of the Labor Standards Act establishes three entitlement intervals, selectable via labor-management consensus:
| System | Entitlement Interval | Key Principle |
|---|
| Anniversary System | Every anniversary year counted from date of hire; for 6 months to under 1 year, the 6-month window after vesting | Statutory default baseline; termination settlements must strictly follow this system |
| Calendar Year System | January 1 through December 31 of each year | Permits prorated tranche allocations, provided statutory days are never diminished |
| Other Agreed Year | School academic year, enterprise fiscal year, or other mutually agreed cycle | Similarly prohibited from reducing statutory days |
Ministry of Labor FAQs point out that when companies agree with employees to adopt the calendar year system for attendance management convenience, prorating leave tranches is permissible provided statutory totals are preserved; however, upon labor contract termination, employers must calculate statutory entitlements based on the worker's original hire date (anniversary system).
Ministry of Labor FAQs state that calendar year systems can allocate leave via proration without diminishing statutory days, without mandating a singular rigid mathematical formula. Below is our illustrative proration model (not a mandatory Ministry of Labor formula; actual calculations depend on labor-management agreements and the official Ministry of Labor calculator): for an employee hired on July 1, Year 115 (2026), under the anniversary system they vest 3 days on January 1, Year 116, 7 days on July 1, Year 116, and 10 days on July 1, Year 117. When converted to calendar year tranches:
| Calendar Year | Calculated Leave Days | Calculation Breakdown |
|---|
| Year 116 | 6.5 days | 3 days for 6 months + (7 days for 1 year × 6/12) |
| Year 117 | 8.5 days | (7 days × 6/12) + (10 days for 2 years × 6/12) |
| Year 118 | 12 days | (10 days × 6/12) + (14 days for 3 years × 6/12) |
Our practical advice: when half-days arise, establish handling rules in advance within work rules or employment contracts, ensuring total days are not fewer than statutory quotas. The Ministry of Labor operates an online "Annual Paid Leave Days Calculation System" supporting anniversary, calendar, and fiscal year calculations, accessible from official ministry portals.
Unused Annual Leave: Cash Payouts and Deferrals
Article 38, Paragraph 4 of the Labor Standards Act mandates that employers must pay wages for annual leave days remaining untaken due to year-end or contract termination. However, untaken days at year-end may be deferred to the subsequent year upon mutual labor-management consensus; if deferred days remain untaken at the end of the subsequent year or upon resignation, employers must still pay wages.
| Item | Statutory Rule | Regulatory Basis |
|---|
| One Day Wage Rate | Normal working time wage of the day preceding year-end or termination; for monthly wage workers, most recent month normal wage ÷ 30 | Enforcement Rules Article 24-1 |
| Year-End Payout Deadline | Contractual wage payment date, or within 30 days following year-end | Enforcement Rules Article 24-1 |
| Resignation Payout Deadline | Settled immediately upon contract termination; Ministry of Labor states no later than original agreed payday | Enforcement Rules Article 9, Ministry of Labor statements |
| Deferred Leave Computation | Billed according to wage standards at original year-end vesting; deferred days deducted first when taking leave next year | Enforcement Rules Article 24-1 |
| Written Notification | Employers must record leave dates and wage cashouts in wage rosters annually, notifying workers in writing (paper or electronic) | Labor Standards Act Art. 38 Para. 5, Rules Art. 24-2 |
Trial calculation: a worker earning a monthly wage of NT$36,000 (normal working time wage) has a daily wage of 36,000 ÷ 30 = NT$1,200; with 5 untaken days at year-end, they should receive NT$6,000. An official Ministry of Labor example notes that an employee with an agreed payday on the 5th of each month who resigns on February 20 with 6 untaken leave days must receive wages for those 6 days no later than March 5.
The Ministry of Labor underscores that regardless of termination reasons (voluntary resignation or severance), and regardless of why leave went untaken, all untaken days must be cashed out. For overtime and minimum wage baselines, refer to 2026 Minimum Wage and Overtime Calculations; for differences between bonuses and leave cashouts, see Is Year-End Bonus Mandatory by Law?.
Do Parental Leave and Resignation Impact Leave?
Article 4 of the Regulations for Implementing Parental Leave Without Pay for Raising Children specifies that parental leave periods are excluded from seniority calculations unless agreed otherwise by labor and management. An official Ministry of Labor Q&A explains: an employee hired on January 1 who takes 10 days of parental leave must work until January 10 of the following year to reach 1 full year, vesting 7 days of annual leave starting January 11; the ministry encourages employers to offer superior terms by counting daily parental leave toward seniority. For daily parental leave rules starting Year 115, see How to Apply for Parental Leave Allowances.
Upon severance, unused leave must be settled separately from severance pay and advance notice wages; see How to Calculate Severance Pay.
Employer Violations: Taipei and New Taipei Dispute Channels
Employers violating Article 38 face fines between NT$20,000 and NT$1,000,000 under Article 79, Paragraph 1 of the Labor Standards Act, and competent authorities may increase penalties by up to one-half depending on enterprise scale, headcounts, or severity. The Ministry of Labor clarifies that verified infractions result in public disclosure of the business entity name and responsible person, along with orders for back pay. File complaints with local labor authorities in Taipei and New Taipei:
| Jurisdiction | Competent Agency | Telephone Contacts |
|---|
| Taipei City | Taipei City Department of Labor (5F, No. 1, Shifu Rd., Xinyi Dist.) | 02-2720-8889; Taipei Citizen Hotline 1999 (direct dial within Taipei) |
| New Taipei City | New Taipei City Labor Affairs Department | Switchboard (02)2960-3456 or 1999 (within New Taipei); Labor Relations Division Service Counter Line 02-2965-3900 |
| National | Ministry of Labor | Toll-free Consultation Hotline 1955 |
Frequently Asked Questions
If I resign voluntarily, can I still cash out unused annual leave?
Yes. The Ministry of Labor clarifies that regardless of termination cause (voluntary resignation or layoff), all untaken annual leave must be converted into wages, settled upon departure or no later than the original agreed payday. Monthly salaried workers divide their latest month's normal wage by 30 to determine daily rates.
What happens to the 3 days of leave earned after 6 months if untaken?
Under Enforcement Rules Article 24, the 3 days earned between 6 months and 1 year have a 6-month exercise window under the anniversary system; if untaken upon expiration, it constitutes year-end untaken leave, requiring wage payout or negotiated deferral to the following year.
How is leave settled if a company uses the calendar year system?
The Ministry of Labor states that regardless of regular administrative systems, upon contract termination leave must be recalculated based on the employee's hire date (anniversary system) and actual seniority, paying out remaining days after subtracting days already taken.
How many annual leave days vest after 10 years of service?
Under Article 38, Paragraph 1, Subparagraph 6 of the Labor Standards Act, reaching 10 years yields 16 days, increasing by 1 additional day per year thereafter, up to a maximum cap of 30 days starting at 24 years.
Can a company force employees to take leave only during low season?
No. Annual leave scheduling dates are designated by the worker; employers may only negotiate adjustments in case of urgent operational needs. The Ministry of Labor confirms employers cannot restrict workers to specific dates. Violations of Article 38 trigger fines from NT$20,000 to NT$1,000,000.
Last updated: 2026-11-03
This article is compiled from public legal sources by SOSfix editors for general guidance; consult Taipei City Department of Labor, New Taipei City Labor Affairs Department, or the Ministry of Labor 1955 hotline for individual disputes.
Sources and References
- Laws and Regulations Database: Labor Standards Act (Amended July 31, Year 113, consolidated to October 22, Year 115, verified 2026-11-02): Article 38 leave days, scheduling, notification, wage payouts, written notices, and burden of proof; Article 39 double holiday pay; Article 79 Paragraph 1 fines and enhancements.
- Laws and Regulations Database: Enforcement Rules of the Labor Standards Act (Amended March 27, Year 113, verified 2026-11-02): Article 5 seniority start; Article 9 immediate wage settlement; Article 24 entitlement intervals and 30-day notice; Article 24-1 daily wages, payment deadlines, and deferrals; Article 24-2 written notices.
- Ministry of Labor: How to Calculate Calendar Year Annual Leave Days (Published 2025-07-07, updated 2026-04-23, verified 2026-11-02): Prorated allocations without diminishing statutory rights, anniversary recalculation on termination, deferral rules, and online calculator.
- Ministry of Labor Press Release: Crucial Annual Leave Settlements upon Termination (Published 2022-04-19, verified 2026-11-02): Seniority examples (March 1, Year 110 to April 1, Year 111 totaling 10 days), odd month rules, payday deadlines, mandatory cashout regardless of cause, fines, and public disclosures.
- Ministry of Labor: Annual Leave Days, Scheduling Principles, and Deferrals (Published 2025-09-05, updated 2026-03-25, verified 2026-11-02): Worker scheduling rights, negotiated adjustments, ban on employer date restrictions.
- Laws and Regulations Database: Regulations for Implementing Parental Leave Without Pay for Raising Children (Amended November 21, Year 114, verified 2026-11-02): Article 4 parental leave excluded from seniority unless agreed otherwise.
- Ministry of Labor: Parental Leave Flexibility Q&A (Published 2025-09-24, updated 2026-03-20, verified 2026-11-02): Seniority deferral examples for 10-day leave.
- Taipei City Department of Labor: Official Footer Contacts (Verified 2026-11-02): Address, main lines 02-2720-8889 and 1999.
- New Taipei City Government: Labor Affairs Department Contact Information (Verified 2026-11-02): Switchboard (02)2960-3456, Labor Relations consultation line 02-2965-3900.
- Ministry of Labor Press Release: Flexible Parental Leave System Takes Effect January 1, Year 115 (Published 2025-09-04, verified 2026-11-02): Ministry of Labor toll-free helpline 1955.
