--- title: "South Korea" id: "11888" type: "global-payroll" slug: "south-korea" published_at: "2025-08-05T10:55:06+00:00" modified_at: "2026-10-13T15:04:05+00:00" url: "https://topsourceworldwide.com/global-payroll/south-korea/" markdown_url: "https://topsourceworldwide.com/global-payroll/south-korea.md" taxonomy_continent: - "Asia" --- # Payroll Services in South Korea Fully managed South Korean payroll: income tax withheld from the National Tax Service tables, the four social insurances at 2026 rates and severance accrued on every payslip, with tax and premiums paid by the 10th and a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What payroll in South Korea actually involves Payroll in South Korea combines monthly income tax withholding with four social insurances that cost the employer about 11% of pay, plus severance worth a month’s pay for each year of service. Tax and premiums are both due on the 10th of the following month. ### Four social insurances National Pension, health and long-term care, employment and industrial accident insurance cost the employer about 11% of pay in 2026. Employees pay about 9.7% for the first three. ### A pension rate that rises every year National Pension rose from 9% to 9.5% in January 2026, split evenly, and climbs half a point every January to 13% in 2033. In 2027 it is 10%. ### Tax withheld from simplified tables Employers withhold income tax each month from the National Tax Service’s simplified tables, plus local income tax of 10% of that amount, and settle the year with February’s pay. ### Severance of a month a year Employees with a year of service and at least 15 hours a week earn 30 days’ average wages for each year worked, paid within 14 days of leaving. ### Itemised wage statements Since November 2021 every payment of wages must come with a statement showing each pay item and deduction. Failing to issue one can cost up to KRW 5 million. ## Our Partners Globally ## Calculate Your Employee Costs in South Korea Enter a gross annual salary to see the employer’s statutory cost for a South Korean employee in 2026: the four social insurances, with pension capped at KRW 6,590,000 a month, and the severance accrual. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### South Korea Annually Monthly | | British Pound | South Korea | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your South Korean hiring costs before you commit Tell us the role and the salary. We’ll send back the full South Korean employer cost, severance included, and the employee’s net pay after income tax and insurance within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in South Korea Explained A South Korean employee costs about 11% on top of gross salary in social insurance, plus severance that most employers accrue at one twelfth of pay: close to 19% in all. Income tax and the employee’s premiums come out of the employee’s pay, so they change net pay, not the employer’s cost. Here’s the breakdown. #### The four social insurances in 2026 National Pension is 9.5% of monthly pay, 4.75% each, on income up to KRW 6,590,000 a month from July 2026. Health insurance is 7.19%, split evenly, and long-term care insurance adds 0.9448% of pay, also split, equal to 13.14% of the health premium. Employment insurance is 0.9% each for unemployment benefits, plus an employer-only levy of 0.25% to 0.85% depending on company size. Industrial accident insurance is paid by the employer alone at a rate set by industry, 1.47% on average in 2026 and lower for office work. The National Health Insurance Service collects all four premiums, due on the 10th of the following month. #### Income tax withholding and the year-end settlement Each month the employer withholds income tax from the simplified withholding tables of the National Tax Service, based on pay and the number of dependants, and employees can choose to have 80%, 100% or 120% of the table amount withheld. Local income tax of 10% of the income tax is withheld on top. Rates on annual taxable income run from 6% to 45%. The withholding return and payment are due on the 10th of the month after salary is paid, or every six months for approved small employers. The employer then runs the year-end tax settlement, squaring each employee’s actual tax for the year with February’s pay. #### Severance, pay rules and overtime Severance is 30 days’ average wages for each year of service, owed to employees with at least a year of service working 15 hours a week or more, on resignation as well as dismissal. It is paid within 14 days of leaving, with final wages, unless both sides agree to a later date, and late payment carries interest of 20% a year. Many employers fund it through a retirement pension plan instead of paying it from their own accounts. Wages must be paid in full at least once a month on a fixed date. In workplaces with five or more employees, overtime, night work between 10pm and 6am and holiday work are paid at 50% more, and holiday work beyond eight hours at 100% more. #### What a South Korean employee actually costs For an employee earning KRW 5,000,000 gross a month in an office-based business, the employer pays KRW 237,500 in pension, KRW 203,370 in health and long-term care, KRW 57,500 in employment insurance and about KRW 47,500 in accident insurance, KRW 545,870 in all, plus a severance accrual of KRW 416,667: a monthly cost of KRW 5,962,537. The employee pays KRW 485,870 in premiums plus income tax from the withholding tables. The minimum wage is KRW 10,320 an hour in 2026, KRW 2,156,880 a month for a 40-hour week, and rises to KRW 10,700 an hour, KRW 2,236,300 a month, on 1 January 2027. #### Leave, tax-free allowances and what changes in 2027 Employees earn 15 days of paid annual leave after a year with at least 80% attendance, one more day every two years up to 25, and one day for each full month in their first year. Meal allowances of up to KRW 200,000 a month are tax free, and since 2026 so are childcare allowances of up to KRW 200,000 a month for each child aged six or under. On 1 January 2027 the National Pension rate rises to 10%, 5% each, and the minimum wage to KRW 10,700 an hour. The health insurance rate stays at 7.19% for 2027, as decided in September 2026. ## South Korean payroll contributions and taxes, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | National Pension | 4.75% | 4.75% | Pay up to KRW 6,590,000 a month from July 2026 | | Health insurance | 3.595% | 3.595% | Total pay, 7.19% in all | | Long-term care insurance | 0.4724% | 0.4724% | 13.14% of the health premium | | Employment insurance | 0.9% plus 0.25% to 0.85% | 0.9% | Total pay; the employer levy depends on company size | | Industrial accident insurance | By industry, 1.47% on average | — | Total pay | | Income tax | — | 6% to 45%, plus 10% local income tax | Withheld monthly from the simplified tables | | Severance | 30 days’ average wages a year | — | Employees with a year of service and 15 or more hours a week | | Payment deadline | 10th of the next month | — | Withholding tax and all four premiums | ### Monthly employer cost of an office employee in South Korea, 2026 | Monthly gross | National Pension | Health and long-term care | Employment insurance | Accident insurance | Severance accrual | Total monthly cost | | --- | --- | --- | --- | --- | --- | --- | | KRW 3,000,000 | KRW 142,500 | KRW 122,022 | KRW 34,500 | KRW 28,500 | KRW 250,000 | KRW 3,577,522 | | KRW 5,000,000 | KRW 237,500 | KRW 203,370 | KRW 57,500 | KRW 47,500 | KRW 416,667 | KRW 5,962,537 | | KRW 8,000,000 | KRW 313,025 | KRW 325,392 | KRW 92,000 | KRW 76,000 | KRW 666,667 | KRW 9,473,084 | ### South Korean payroll in 2026 and from 1 January 2027 | Item | 2026 | From 1 January 2027 | | --- | --- | --- | | National Pension | 9.5%, 4.75% each | 10%, 5% each | | Health insurance | 7.19% | 7.19%, unchanged | | Minimum wage, hourly | KRW 10,320 | KRW 10,700 | | Minimum wage, monthly (209 hours) | KRW 2,156,880 | KRW 2,236,300 | The cost table uses the 1.15% employment insurance rate for employers with fewer than 150 employees and an office accident insurance rate of about 0.95%, including the commuting accident and wage claim guarantee levies. Severance is accrued at one twelfth of pay; it runs higher where bonuses raise average wages. These are TopSource calculations from the verified 2026 rates. Rates, ceilings and amounts shown are for 2026, with the changes confirmed for 2027, and were verified on 8 October 2026 against the National Pension Service, the National Tax Service, the Ministry of Employment and Labor, the Ministry of Health and Welfare and the Labor Standards Act. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our South Korean payroll service works 1. Map your setup We confirm your registration as a withholding agent with the National Tax Service, your workplace registration for the four social insurances, each employee’s dependants for withholding, and any rules of employment or collective agreement that set pay. 2. Migrate or onboard New hires are registered for the four insurances when they start. Year-to-date pay, tax withheld, severance accruals and leave balances are carried across so nothing is lost at the changeover. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, insurance premiums and income and local income tax, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries, issue itemised wage statements, file the withholding return and pay income tax, local income tax and the four premiums by the 10th, and run the year-end tax settlement each February, whether your team works in Seoul, Busan or anywhere else in South Korea. 5. Stay current The pension rate rises every January to 2033, its ceiling changes every July and the minimum wage every January. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in South Korea TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. If you would rather not employ staff in South Korea directly, our [Employer of Record in South Korea](https://topsourceworldwide.com/employer-of-record/south-korea/) can employ them on your behalf. We don’t hide fees or sneak price increases. We run South Korean payroll in-house and file under your own National Tax Service and social insurance registrations rather than a bureau’s, so the same team that files your withholding returns answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of South Korea beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in South Korea and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for South Korea Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## South Korean payroll FAQs ### What are the social insurance rates in South Korea for 2026? National Pension 9.5%, health insurance 7.19% and long-term care 0.9448% of pay, all split evenly, plus employment insurance of 0.9% each and an employer levy of 0.25% to 0.85%. Industrial accident insurance is paid by the employer alone at a rate set by industry. ### How is income tax withheld from salaries in South Korea? Each month from the National Tax Service’s simplified withholding tables, with local income tax of 10% of that amount on top. Employees can choose 80%, 100% or 120% of the table amount, and the year’s tax is settled with February’s pay. ### When are payroll taxes and premiums due in South Korea? Withheld income tax and local income tax are due on the 10th of the month after salary is paid, and the four social insurance premiums on the 10th of the following month, collected by the National Health Insurance Service. ### How much does it cost to employ someone in South Korea? About 11% on top of gross pay in social insurance, plus severance accrued at one twelfth of pay: an office employee on KRW 5,000,000 a month costs about KRW 5,962,537. Tell us the role and salary and we’ll send the full cost within one business day. ### Is severance pay mandatory in South Korea? Yes. Employees with at least a year of service and 15 or more hours a week are owed 30 days’ average wages for each year worked, whether they resign or are dismissed, paid within 14 days of leaving. ### What is the minimum wage in South Korea? KRW 10,320 an hour in 2026, KRW 2,156,880 a month for a 40-hour week. It rises by 3.7% to KRW 10,700 an hour, KRW 2,236,300 a month, on 1 January 2027, in every industry. ### What changes in South Korean payroll in 2027? On 1 January 2027 the National Pension rate rises to 10%, 5% each, and the minimum wage to KRW 10,700 an hour. The health insurance rate stays at 7.19%. ### Which allowances are tax free in South Korea? Among others, meal allowances of up to KRW 200,000 a month for employees not given meals, childcare allowances of up to KRW 200,000 a month for each child aged six or under since 2026, and allowances of up to KRW 200,000 a month for using their own car for work. ### Is a payslip mandatory in South Korea? Yes. Since 19 November 2021 employers must give a wage statement with every payment, showing each pay item, how variable items were calculated and every deduction. Failing to issue one, or issuing an incomplete one, can be fined up to KRW 5 million. ### Can a foreign company run payroll in South Korea without an entity? Registering as a withholding agent and for the four insurances generally requires a local presence, such as a Korean subsidiary or branch. Without one, the usual route is an Employer of Record. TopSource can run payroll for your Korean entity or employ your team through our Employer of Record service. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more