| Annual Taxable Income (KRW) | Progressive Tax Rate (%) |
|---|---|
| Up to 14M | 6 |
| 14M–50M | 15 |
| 50M–88M | 24 |
| 88M–150M | 35 |
| 150M–300M | 38 |
| 300M–500M | 40 |
| 500M–1B | 42 |
| Over 1B | 45 |
In addition to personal income taxes, there is also a local income tax paid to the city or the province that is the domicile of the taxpayer, assessed at a rate of 10% of the personal income tax rates.
| Annual Taxable Income (KRW) | Progressive Tax Rate (%) |
|---|---|
| Up to 14M | 0.6 |
| 14M–50M | 1.5 |
| 50M–88M | 2.4 |
| 88M–150M | 3.5 |
| 150M–300M | 3.8 |
| 300M–500M | 4 |
| 500M–1B | 4.2 |
| Over 1B | 4.5 |
The following contributions apply to both locals and foreigners, provided that there are no exceptions under a social security agreement between South Korea and the other country.
Contributions made for National Pension (국민연금) shall be calculated based on a monthly salary of at least KRW 400,000 up to KRW 6.37M.
| Contribution Rates | Notes | |
|---|---|---|
| National Pension (국민연금) | 4.5% | |
| National Health Insurance (건강보험) | 3.545% | |
| Employment Insurance (고용보험) | 1.15%–1.75% | Actual rates may vary according to the number of employees in an establishment. |
| Worker's Compensation Insurance (산재보험) | 0.5%–18.5% (avg. 1.47%) | Actual rates may vary according to business type. |
In addition to the above, employers are expected to match their employee's contributions for Long-Term Care Insurance (장기요양보험).
| Contribution Rates | |
|---|---|
| National Pension (국민연금) | 4.5% |
| National Health Insurance (건강보험) | 3.545% |
| Employment Insurance (고용보험) | 0.9% |
In addition to the above, employees are expected to make contributions for Long-Term Care Insurance (장기요양보험), the rate of which is set at 0.9182%.
Long-Term Care Insurance Premium Formula: National Health Insurance Premium * (Long-Term Care Insurance Rate / Combined employee-employer National Health Insurance Rate)
For example, with a monthly earning of KRW 2,000,000, the calculation for both National Health Insurance and Long-Term Care Insurance premiums are as follows:
| National Health Insurance | KRW 2,000,000 * 3.545% = KRW 70,900 |
|---|---|
| Long-Term Care Insurance | KRW 70,900 * (0.9182% / 7.09%) = KRW 9,180 |
In this case, the employee is expected to pay a total of KRW 80,080 for both National Health Insurance and Long-Term Care Insurance, with the employer being required to match this amount.
Wages shall be paid at least once per month on a fixed day.
Minimum Wage
Effective January 1, 2025, the minimum wage in South Korea is set at KRW 10,030 per hour or KRW 2,096,270 per month.
There is no statutory bonus in South Korea.
Employers shall not dismiss, lay off, suspend or transfer an employee, reduce their wages, or take other punitive measures against them without justifiable cause. Those intending to dismiss their employees shall notify them in writing of the grounds for, and the timing of, their dismissal.
That being said, there are certain employees that are protected from dismissal. These include, among others, those on maternity leave and those who are on leave for work-related illness or injury, especially if the employer still have outstanding obligations to pay medical compensation to these employees.
Employers dismissing an employee with at least 3 continuous months of service shall observe a notice period of at least 30 days or pay their employee in lieu of the notice period not served.
However, notice period is not required if the continuation of the business is impossible due to natural disasters, incidents or other unavoidable circumstances. Similarly, notice period is also generally not required if the employee is dismissed for reasons attributable to the employee themselves.
Employers are obligated to pay their terminated employees severance equivalent to at least a month's average wage for each continuous year of service, provided that the employee in question has completed a continuous year of service and their average working hours over a 4-week period is at least 15 hours per week.
The standard probationary period in South Korea is 3 months, with no regulations surrounding its maximum duration and extension. No notice period is required for dismissing employees on probation.
Standard working hours are subject to a maximum of 8 hours per day or 40 hours per week.
Employees who work for 4 hours are entitled to a break period of at least 30 minutes, and those who work for 8 hours are entitled to a break period of at least an hour.
Moreover, female employees with infants under a year old are entitled to at least 30 minutes of paid nursing time twice a day upon request.
Standard working hours may be exceeded with an agreement between the employer and employee, provided that the overtime hours do not exceed 12 hours per week.
Employees who work overtime shall be paid at least 150% of their ordinary wages or, if there is a written agreement to such effect with the workers' representative, a compensatory day off.
Employees who show perfect attendance of the contractual working days during the week are entitled to at least a paid holiday per week on the average.
Employees required to work during their holiday shall be paid at the following rates or, if there is a written agreement to such effect with the workers' representative, compensatory leave:
| Working Hours | Pay rate for holiday work |
|---|---|
| Up to 8 hours | 150% of ordinary wages |
| Over 8 hours | 200% of ordinary wages |
Employees are entitled to paid time off on public holidays. There are 15 days of public holidays in South Korea for 2025.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Seollal | January 28–30 |
| March 1st Movement Day | March 3 |
| Children's Day | May 5 |
| Buddha's Birthday | May 6 |
| Memorial Day | June 6 |
| Liberation Day | August 15 |
| National Foundation Day | October 3 |
| Chuseok | October 6–8 |
| Hangeul | October 9 |
| Christmas Day | December 25 |
Employees required to work during their holiday shall be paid at the following rates or, if there is a written agreement to such effect with the workers' representative, compensatory leave:
| Working Hours | Pay rate for holiday work |
|---|---|
| Up to 8 hours | 150% of ordinary wages |
| Over 8 hours | 200% of ordinary wages |
Employees who have completed a full year of service and have worked at least 80% of the year shall be entitled to at least 15 days of paid annual leave. This leave entitlement shall then increase by a day every 2 consecutive years of service thereafter, up to a maximum of 25 days.
Employees who have not completed a year of service or have not worked at least 80% of the year shall only be granted a paid-leave day per month continuously worked.
Annual leave shall be granted at the time when the employee files a claim therefor, unless the timing greatly impedes business operations, within a year of their accrual. Annual leave not taken can only be carried over to the following years if they are not taken for reasons attributable to the employer.
Sick leave is not regulated under the Labor Standards Act and its accompanying enforcement decree.
Pregnant employees are entitled to the following maternity leave entitlements:
| Total maternity leave entitlement | Minimum post-natal leave | |
|---|---|---|
| Pregnant with a child | 90 days | 45 days |
| Pregnant with 2 or more children at a time | 120 days | 60 days |
The first 60 days of maternity leave, or 75 days in the event of multiple birth, shall be paid by the employer, with the remaining period being covered by employment insurance.
Some employers may be subject to preferential support where the entire period is covered by the employment insurance, up to a certain cap. If the employee earns more than the capped benefit amount, the employer needs to cover the difference for the first 60 days of leave.
Employees are entitled to 20 days of paternity leave, which can be taken by request within 120 days after the date of delivery. This leave can be split into 4 separate period.
The first 5 days of paternity leave shall be paid by the employer, while the remaining days shall be covered by Employment Insurance. For small- and medium-sized companies, the government subsidy extends to cover the full benefit period.
There are no paid parental leave provisions in the LSA, but employees may be entitled to receive replacement benefits from the government for taking parental leave.
The period of shared parental leaves for working couples is subject to a maximum of 3 years at 1.5 years for each parent, which can be taken in up to 4 parts. This applies to single parents, those whose child has severe disabilities and in cases where both parents take more than 3 months of parental leave each.
Employees who do not meet any of the abovementioned criteria shall only be entitled to a year of parental leave.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Family Care Leave | Unpaid | 90 days per year | For employees to provide support and care to family members who are sick, injured or old-aged. More on this leave can be accessed under the Equal Employment Opportunity and Work-Family Balance Assistance Act. |
| Fertility Treatment Leave | Both | 6 days per year |
Only 2 days of this leave are paid by the employer, with them being covered by the government for eligible small and medium-sized businesses. More on this leave can be accessed under the Equal Employment Opportunity and Work-Family Balance Assistance Act. |
| Leave for Medical Examination of Unborn Child | Paid | - | Where a pregnant employee claims time necessary for a periodical medical examination of pregnant women under Article 10 of the Mother and Child Health Act, an employer shall grant permission for such time with no reduction in pay. |
| Menstrual Leave | Unpaid | 1 day per month | Female employees can file a claim for this leave as necessary. |
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