We analyze whether the production factor labor is underpaid in Taiwan by estimating the gap between the marginal product of labor and factor compensation based on profit and output data from publicly listed companies. Our results show that marginal product of labor growth has outpaced remuneration growth during the past two and a half decades, implying that Taiwan's workforce is increasingly underpaid. In contrast, capital overpayment has increased, especially in the manufacturing sector. We find that the degree of underpayment is larger for workers with university education, who are predominantly from younger cohorts, while the productivity-compensation-gap is smaller and sometimes negative for workers whose highest educational attainment is a high school degree. In companies with a young workforce, the degree of underpayment is higher and rents are allocated to capital owners. Workers from the low education group are overpaid in companies with an older workforce and long tenure structure.