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Official: Overtime pay on typhoon days off nontaxable

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Official: Overtime pay on typhoon days off nontaxable

Overtime pay on typhoon days off nontaxable

As Super Typhoon Meranti is passing through and hammering the southern tip of Taiwan, seven local governments have announced a typhoon day off on Wednesday to ensure the safety of employees. The Ministry of Finance said on Wednesday that those working on typhoon days off shall be compensated by employers for overtime, which will not be taxed.

Overtime pay under 46 hours per month is exempt from tax, according to the existing tax law, but a finance official further elaborated that the hours of working on typhoon days off is not counted in the monthly 46-hour overtime nontaxable limit.

On Wednesday, local governments of Kaohsiung City, Pingtung County, Hualien County, Taitung County, Penghu County, and Kinmen County announced a typhoon day off starting from the morning, while Tainan started its day off after Wednesday noon.

According to the existing Labor Standards Act, public and private-sector employees shall not work more than 12 hours per day. The act restricts overtime work to 46 hours per month, and the overtime pay within this limit will not be taxed.

Apart from working on typhoon days off, compensation for working on national holidays or days off due to a natural disaster or emergency will not be taxed and counted in the monthly non-taxable limit either.



Updated : 2021-05-17 09:57 GMT+08:00