2026 Annual Leave in Taiwan: Labor Standards Act Rules, Unused Leave Payout, and Resignation Settlement

Planning a long summer trip? The first thing to figure out is, “How many days of annual leave do I actually have?” Under Article 38 of the Labor Standards Act, once you’ve worked at the same company for 6 months you get 3 days of annual leave, and after 1 year you get 7 days — and because annual leave is paid leave, any days you don’t use can be converted into cash. This guide lays out, all in one place, the 2026 annual leave allotment, the difference between the anniversary system and the calendar-year system, cashing out unused leave, and how it’s settled when you resign — so you can check your rights clearly and avoid losing leave or wages you are legally entitled to.

How is annual leave calculated under the Labor Standards Act? You get 3 days after just six months

Annual leave accrues with your years of service. Article 38 of the Labor Standards Act sets it out as follows:

6 months but less than 1 year: 3 days
1 year but less than 2 years: 7 days
2 years but less than 3 years: 10 days
3 years but less than 5 years: 14 days per year
5 years but less than 10 years: 15 days per year
10 years or more: 1 additional day for each extra year, capped at 30 days

Note that the 7 days you get after 1 year is a fresh grant, not 7 days added on top of the original 3. The 3 days granted at the six-month mark cover your rights for the period from the first half-year up to the one-year mark.

Anniversary system vs. calendar-year system: what’s the difference?

The same number of days can be counted from a different starting point — that’s the difference between the anniversary system and the calendar-year system:

Anniversary system: counts from your “hire date.” You get 3 days after a full 6 months and 7 days after a full year. This is the most straightforward approach.
Calendar-year system: treats January 1 to December 31 each year as one cycle. The company converts your service that spans across years and grants leave on a prorated basis, which makes the calculation more complex.

Which one applies can be agreed between employer and worker, but whichever is used, the total annual leave that results cannot be less than the Labor Standards Act standard. If you’re not sure exactly which day marks your first full year of service or when your annual leave takes effect, you can use a date calculator to count forward from your hire date, or check against the Ministry of Labor’s “Annual Leave Days Calculation System.”

What if you don’t use up your annual leave? Cash it out or carry it over

For annual leave you don’t use up within the year, the law requires the employer to pay it out as wages (cash conversion), or, with the worker’s consent, to defer it to the following year. If it still isn’t used after being deferred, the employer must pay it out in cash. In other words, annual leave is your right, and it doesn’t automatically disappear or get forfeited just because you didn’t schedule it. If a company has a rule that “unused leave is voided,” that is illegal. Remember to check how many days you have left at the end of each year, and proactively schedule them or request a cash payout.

How is annual leave settled when you resign? The employer must pay it out

For annual leave you haven’t used up when you leave, whether you resign voluntarily or are laid off, the employer must convert the remaining leave into wages and settle it along with your final pay. It’s calculated by multiplying your remaining days by one day’s wage. Many workers overlook this payment when they leave, effectively forgoing wages they are entitled to. When you process your departure, confirm with HR the number of days and the amount of your annual leave settlement, and check it against your final payslip. If you’re planning to switch jobs, take the opportunity to get your résumé in order with a résumé generator to make the transition smoother.

Remedies when an employer won’t grant leave or improperly docks it

If you run into an employer who won’t let you schedule annual leave, treats annual leave as personal leave and docks your pay, or fails to settle your annual leave when you resign, start by preserving evidence such as attendance records, payslips, leave records, your employment contract, and message logs. Then file a complaint or apply for labor dispute mediation with your local city or county government labor affairs bureau (department). An employer who fails to grant annual leave as required by law or fails to pay it out can be fined NT$20,000 or more under the Labor Standards Act, and the competent authority will also order corrective action within a set period. Mediation is free, and most disputes can be resolved at this stage without having to go to court. These protections favor the worker; the key is to keep thorough records throughout, and to assert your rights when you identify a problem rather than forgoing them out of concern about the employer’s reaction. This article is compiled based on Article 38 of the Labor Standards Act, with information current as of June 2026; individual cases are still subject to the interpretations of the Ministry of Labor and local labor affairs bureaus.

FAQ

Do you get annual leave if you’ve worked less than six months?

The annual leave threshold under the Labor Standards Act is a full 6 months of service. If you’ve worked less than 6 months, in principle you have no annual leave. Some companies, however, voluntarily offer benefit leave that exceeds the legal minimum — check your employment contract or company policy.

Can I force the company to let me take leave on a specific date?

In principle, the dates of annual leave are set by the worker, and the employer may only negotiate an adjustment with you based on an urgent operational need — they cannot refuse unilaterally. Both sides should communicate in advance, so that operations aren’t disrupted and your right to leave is also protected.

How is the cash payout for unused annual leave calculated?

It’s calculated as “unused days × one day’s wage.” One day’s wage is usually computed by dividing the monthly salary by 30; the actual figure depends on your employment contract and the definition of wages, and the amount should be included in your wage settlement when paid out.

Does annual leave restart from scratch if there’s a break in service?

In principle, annual leave accrues based on years of “continuous service with the same employer or business entity.” If you leave and are then rehired by the same employer, whether your prior service is counted together depends on the specific circumstances and any agreement, so it’s best to confirm with the labor affairs bureau.