Trends and Opportunities for Thai Workers

Labor Shortage in Taiwan

Taiwan is facing a labor shortage due to its low birth rate and impending transition into a “super-aged society” by 2025. To address this, Taiwan’s Ministry of Labor plans to sign an MOU with India by the end of 2023 to import Indian workers. However, as of now, no agreement has been finalized. The introduction of Indian workers will be gradual and carefully regulated to ensure social stability, as false reports of importing 100,000 Indian workers have raised concerns about potential security risks and increased crime rates.

For labor shortages in the service sector, Taiwan’s Tourism Bureau has proposed allowing foreign workers in the hotel industry. However, the Ministry of Labor has not yet supported this, instead encouraging hotels to first hire older Taiwanese workers or women returning to work after childbirth. If unsuccessful, hiring foreign workers may be reconsidered.

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Current Situation

General Labor (Unskilled Workers)

Starting January 1, 2025, Taiwan will raise the minimum wage for unskilled workers in manufacturing, construction, and agriculture to NT$28,590 per month (excluding social welfare workers). This increase aims to enhance worker benefits and attract more foreign labor, as Taiwan still has high demand in multiple sectors.

• Foreign Caregivers:

  • Due to Taiwan’s aging society, demand for foreign caregivers is high.

  • Indonesian workers dominate this sector (160,000+), followed by Vietnamese and Filipinos.

  • Thai workers (~400) are declining due to the job’s demanding nature (live-in work, high patience required, lack of labor insurance coverage).

  • Thai workers prefer manufacturing jobs, which offer more privacy and social activities.

• Construction Workers:

  • Taiwan has major infrastructure projects, including:

    • Taoyuan International Airport Terminal 3 construction

    • Metro expansion projects

    • Green energy initiatives

  • High demand for foreign construction workers.

• Manufacturing Workers:

  • In 2022, Taiwan’s electronics & semiconductor sectors drove economic growth.

  • However, 2023 saw reduced global demand due to inflation, interest rate hikes, the Russia-Ukraine war, and China’s COVID-19 disruptions.

  • Despite this, Taiwanese employers still seek Thai workers.

• Agricultural Workers:

  • Since April 2019, Taiwan has allowed foreign agricultural workers to address labor shortages in rural areas (aging local workforce).

After Taiwan reopened its borders in October 2022 (following strict COVID-19 controls since March 2020), demand for Thai workers surged. Over 65,000 Thai workers have been approved for employment (Taiwan Ministry of Labor data).

Skilled Workers

Taiwan’s shrinking working-age population (due to low birth rates and rapid aging) is pressuring businesses that need specialized talent. The government’s 3-pronged strategy includes:

1. Recruiting foreign professionals

2. Attracting & retaining overseas Chinese students

3. Encouraging skilled foreign workers to stay, especially young graduates.

Eligible Skilled Workers (Minimum Salary: NT$47,971/month)

1. Corporate & Production Managers

2. Technical/Specialized Roles:

   • Engineers/researchers (physics, math, engineering)

   • Biology/health specialists

   • Accountants, business consultants

   • Lawyers, legal experts

   • Financial/business administrators

   • Architects

   • IT/computer specialists

3. Full-time teachers (schools/tutoring centers)

4. Sports coaches/athletes

5. Chefs (Requirement: 5+ years experience if no degree; 2+ years with bachelor’s; no experience needed for master’s+).

(Note: Taiwan’s labor policies continue evolving to balance economic needs with social stability.)

Upgrading to Semi-Skilled Foreign Workers

The Taiwanese Ministry of Labor has announced that, starting from April 30, 2022, employers can apply to hire foreign workers who meet one of the following criteria:

• 6+ consecutive years of work in Taiwan,

• 12 or 14 years of cumulative work experience (as per labor regulations),
  including those in manufacturing, construction, fishing crews, agriculture, and social welfare sectors (institutional and household caregivers).

If these workers possess verified skills and the employer agrees to pay the required wage threshold, they can be classified as mid-skilled foreign workers, exempt from the standard 12/14-year work limit. After 5 consecutive years as a mid-skilled worker, they become eligible to apply for permanent residency.

Conditions & Procedures for Upgrading to Semi-Skilled Worker Status

Work Experience Requirements

1. 6+ consecutive years in Taiwan (same or different employers).

2. If less than 6 years, the worker must return home and re-enter Taiwan to complete 6 consecutive years before applying.

3. If 6+ years completed, but the worker leaves and re-enters, they must accumulate 12 years total before applying.

4. Foreign workers who previously worked 12+ years in Taiwan can be rehired by any employer (same or different industry).

Wage Requirements

Manufacturing Sector

• Monthly base salary (excluding overtime but including bonuses/allowances) ≥ NT$33,000, OR

• Annual income (including overtime & bonuses) ≥ NT$500,000.

Caregivers

• Household caregivers: ≥ NT$24,000/month.

• Institutional caregivers: ≥ NT$29,000/month.

Skill Requirements

Manufacturing Workers (Must Meet One)

1. Vocational certification (passed national skill test – verify at https://www.wdasec.gov.tw/en/).

2. 80+ hours of vocational training (verify courses at Taiwan Job).

3. Employer certification of skills (with supporting evidence/video proof).
   (Note: Skill tests/training may involve fees.)

Caregivers (Household & Institutional)

• Must pass basic Chinese proficiency test + complete 20+ hours of caregiving training (free online at https://ppt.cc/fAOXEx).

Exemptions

• Manufacturing workers earning ≥ NT$35,000/month.

• Household caregivers earning ≥ NT$26,000/month.

• Institutional caregivers earning ≥ NT$31,000/month.
  (No skill test/certification required if wage criteria are met.)

Application Process

Employers must:

1. First recruit local workers at the required wage. If none apply, obtain a local recruitment certificate.

2. Submit application to the Ministry of Labor (online at https://fwapply.wda.gov.tw).

3. Sign a 3-year contract (renewable indefinitely, exempt from 12/14-year limit).

4. Mid-skilled workers must undergo health checks at 6, 18, and 30 months of employment.

Required Documents

• Proof of skills & wages.

• Proof of local recruitment efforts.

• Employer’s application form.

• No labor violation record (issued by local labor office).

Hotline: 1955 or 02-89956000

Special Cases

• Workers already in Taiwan: Employers can apply online directly.

• Workers who completed 12/14 years and left: Employers must submit documents to the Thai Labor Office (same as unskilled worker contracts).

Taiwan’s Foreign Labor Policy & Quotas

Due to severe labor shortages, Taiwan has allowed foreign worker recruitment since 1989, managed by the Workforce Development Agency (WDA) (https://www.wda.gov.tw/en/).

Quota Allocation

Foreign workers are permitted only in labor-short industries, especially 3K jobs (Dirty, Dangerous, Demanding). Quotas are allocated based on:

• 10%, 15%, 20%, 25%, or 35% of local workforce (higher for more demanding industries).

• Employers must pay NT$2,000/month/worker into a Local Employment Stability Fund.

Agriculture Sector (Since 2019)

• Initially 400 workers each for dairy farms & agricultural services.

• Expanded in 2020 to include poultry, pig farms, orchids, mushrooms, aquaculture, etc.

Additional Quota Requests

Employers facing severe shortages can apply for extra quotas (up to 40% total), but must pay higher contributions based on the additional quota.

This policy aims to retain skilled foreign workers while addressing Taiwan’s labor shortages.