Korean Salary Deductions Explained for Foreign Employees

Last verified: 2026-08-06

A Korean paycheck is reduced by four mandatory social-insurance premiums plus income tax. For a typical employee in 2026, that's roughly National Pension 4.75%, Health Insurance 3.595% (plus a small Long-Term Care Insurance surcharge), Employment Insurance 0.9% of gross pay, and income tax based on a government withholding table. The exact income-tax amount depends on your salary, dependents, and month — use the Korea Salary Calculator for your specific numbers.

The four social-insurance deductions

National Pension (국민연금)

A mandatory pension contribution split evenly between employee and employer. In 2026 the total rate is 9.5%, so employees pay 4.75% of their standard monthly income (기준소득월액). This standard income has a floor and ceiling that change every July 1 — for 2026 that's ₩400,000–₩6,370,000 from January–June and ₩410,000–₩6,590,000 from July–December. If you leave Korea permanently, you may be able to get a lump-sum refund of your contributions — see the pension refund guide.

Health Insurance (건강보험)

Mandatory national health insurance. The 2026 total rate is 7.19%, split evenly, so employees pay 3.595% of their monthly remuneration (보수월액).

Long-Term Care Insurance (장기요양보험)

A surcharge that funds elder-care services, calculated as a percentage of your Health Insurance premium rather than a direct percentage of salary. The 2026 rate is 0.9448% of income, which works out to about 13.14% of your Health Insurance premium.

Employment Insurance (고용보험)

Funds unemployment benefits and job-training programs. The employee share (구직급여 근로자부담) has been 0.9% of gross pay since July 2022 and is unchanged for 2026.

Income tax

Wage income tax (근로소득세) is withheld monthly according to a government simplified withholding table, based on your gross salary, number of dependent family members, and number of qualifying children. Your employer may also apply an 80%, 100%, or 120% withholding option, which shifts more or less tax to your year-end settlement. Local income tax (지방소득세) is a further surtax equal to 10% of your wage income tax.

Example

For a monthly gross salary of ₩3,000,000 with standard social-insurance participation: National Pension ≈ ₩142,500 (4.75%), Health Insurance ≈ ₩107,850 (3.595%), Long-Term Care Insurance ≈ ₩14,172 (13.14% of the Health Insurance premium), Employment Insurance ≈ ₩27,000 (0.9%), plus income tax and local income tax based on the withholding table. Enter your own salary into the salary calculator for an exact breakdown.

Limitations

• Rates shown are for 2026 and change periodically — always confirm the current rate before making financial decisions.
• This guide covers standard employee deductions only, not every possible payroll scenario (e.g. daily workers, certain visa categories with different treatment).
• Income tax figures require the salary calculator or an official table — they cannot be summarized as a single flat rate.