Restaurant Holiday Overtime Pay 2026: Formula + Free Calculator (Taiwan)
Restaurants must staff holidays, but miscalculating overtime pay can lead to fines. This guide explains Taiwan's Labor Standards Act rules in plain language, with free calculator tools.
The Holiday Dilemma for Restaurants
When other industries take time off, restaurants are at their busiest. National holidays, weekends, long weekends — peak dining times mean your staff must work. But Taiwan's Labor Standards Act has strict rules on holiday overtime pay. Miscalculations can result in back-pay obligations and fines ranging from NT$20,000 to NT$1,000,000.
As a restaurant owner, you do not need to memorize legal statutes, but you must understand the basic calculation logic.
Three Types of "Holidays," Three Different Calculations
1. National Holidays (LSA §37)
Including New Year's Day, Lunar New Year, Tomb Sweeping Day, Dragon Boat Festival, Mid-Autumn Festival, National Day, and others — 12 days total. Rules for working on national holidays:
- Monthly-salaried employees: Pay an additional day's wage (since monthly salary already includes holiday pay, this is an "extra day")
- Hourly employees: First 8 hours at double the hourly rate
- Hours beyond 8 follow standard overtime rules: first 2 hours at 1/3 premium, next 2 hours at 2/3 premium
2. Rest Days (LSA §24)
The sixth working day of each week (typically Saturday). Rest day overtime rates are higher:
- First 2 hours: 1 and 1/3 times premium
- Hours 3-8: 1 and 2/3 times premium
- Hours 9-12: Even higher multiplier
3. Regular Days Off (LSA §36)
The seventh day of each week (typically Sunday). In principle, employers cannot require employees to work, except in cases of natural disaster or emergency.
Calculation Example
For a monthly-salaried employee earning NT$30,000, working 10 hours on a national holiday:
- Hourly wage = 30,000 ÷ 30 ÷ 8 = NT$125
- First 8 hours overtime = 125 × 8 × 1 = NT$1,000
- Hours 9-10 overtime = 125 × 2 × 1.34 = NT$335
- Total overtime = NT$1,335 (this is the "extra" pay — regular salary is still due)
For hourly employees it is simpler: national holiday within 8 hours = hourly rate × hours × 2. With the 2025 minimum hourly wage of NT$190, working a full 8-hour holiday shift pays at least NT$3,040.
Complicated, right? That is why we built the Holiday Pay Calculator — enter the salary and hours, and the system calculates every tier automatically.
2026 Taiwan National Holidays
Planning ahead for holiday staffing helps you budget labor costs accurately. Taiwan has 12 national holidays in 2026:
- Jan 1 — New Year's Day
- Jan 28-30 — Lunar New Year's Eve to Day 2
- Feb 28 — Peace Memorial Day
- Apr 4 — Children's Day
- Apr 5 — Tomb Sweeping Day
- May 1 — Labor Day
- May 31 — Dragon Boat Festival
- Oct 6 — Mid-Autumn Festival
- Oct 10 — National Day
For a complete calendar including tourism peaks and major events, check our Restaurant Industry Calendar.
Common Mistakes in the Restaurant Industry
- Offering comp time instead of overtime pay: National holiday work must be compensated with extra pay. Comp time is a separate negotiation, not a substitute.
- Confusing rest days with national holidays: They have different overtime multipliers — getting them mixed up leads to underpayment.
- Scheduling without consent: Working on national holidays requires mutual agreement with employees. Shift workers scheduled on a holiday still get overtime unless the holiday was pre-negotiated to a different day.
Use Tools to Avoid Disputes
Instead of manual calculations every time, use tools to verify:
- Holiday Pay Calculator: Quickly calculate single-day holiday work costs
- Overtime Pay Calculator: Calculate complete overtime for weekdays, rest days, and holidays
- Labor Cost Calculator: Evaluate your overall personnel expenses
- Restaurant Industry Calendar: View all national holidays, tourism peaks, and major events to plan staffing
Getting overtime pay right is not just about compliance — it is fundamental to retaining good employees. In an industry with high turnover, transparent and accurate pay keeps your team loyal.