Manage Payroll Tax in South Korea

Taxes in South Korea

Learn how employment taxes affect your payroll and your employees’ paychecks in South Korea.

Employer

1.15 %

Industrial Accident Compensation Insurance is calculated at 4.50% of the base monthly pay which is capped at 5,900,000.

4 %

National Health Insurance Contribution is calculated at 4% of the base monthly pay (NHI: 3.54% + LTCI 0.46%). A monthly cap of 3,653,550 applies.

1.15 %

Employment insurance is calculated at 1.15% of the base monthly pay.

0.4590 %

Long-term care Insurance is calculated at 0.4590% (12.95% of the NHI contribution rate) of the base monthly pay. A monthly cap of 3,653,550 applies.

Employee

4.5 %

National Pension contribution

3.43 %

National Health Insurance

0.80 %

Employment Insurance

Income tax rates

Up to 12 million KRW - 6.6% (including 10% local residence tax)

12 million - 46 million KRW - 16.% (including 10% local residence tax)

46 million - 88 million KRW - 26.4% (including 10% local residence tax)

88 million - 150 million KRW - 38.5% (including 10% local residence tax)

150 million - 300 million KRW - 41.8% (including 10% local residence tax)

300 million - 500 million KRW - 44% (including 10% local residence tax)

500 million - 1 billion KRW - 46.2% (including 10% local residence tax)

1 billion and up - 49.5% (including 10% local residence tax)