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Payroll taxes
in South Korea.

SALARY PAYMENT IN South Korean Won (KRW, ₩)

CONTRACT LANGUAGES Korean / English

PAYROLL TAX 16.43% – 34.94%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

What is the average employer tax rate in South Korea?

In December 2022, South Korea’s National Assembly approved the 2023 Tax Reform Bill. The bill introduced reductions of one percentage point in each of South Korea’s four corporate income tax brackets.

See the 2023 CIT tax rates below:

Taxable income (KRW)Tax rate
0 – 200 MM9%
200 MM – 20 B19%
20 B – 300 B21%
300 B+24%

What is the average employee tax rate in South Korea?

South Korea has progressive rates of individual income tax. The 2023 Tax Reform Bill increased the personal allowance for employees on low to middle incomes.

Taxable Income (KRW)Tax rate 2023
0 – 14 MM6%
14 MM – 50 MM15%
50 MM – 88 MM24%
88 MM – 150 MM35%
150 MM – 300 MM38%
300 MM – 500 MM40%
500 MM – 1 B42%
1 B +45%

Note that foreigners working in South Korea can opt to be taxed at a flat rate of 19% on income earned through employment in South Korea.

Employer contributions in South Korea

Employers make mandatory contributions towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds. Taxes and mandatory contributions are deducted at source from monthly payroll. 

Contribution itemContribution rate
National Pension Fund4.5% (up to KRW 5.53M)
National Health Insurance3.545%
Long Term Care Contribution6.405%
Employment Insurance1.05-1.65% (based on no. of employees)
Industrial Accident Compensation Insurance Variable based on industryMin. 0.76%

Employee contributions in South Korea

Employees in South Korea make mandatory contributions to the National Pension fund; the National Health Insurance fund; and Employment Insurance.

Employee contributions for 2023:

Contribution item Contribution rate
National Pension Fund 4.5%
National Health Insurance 3.545%
Long Term Care Contribution 6.405%
Employment Insurance 0.9%

Hiring in South Korea, Made Easy

Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

The National Tax Service is responsible for collecting tax revenues in South Korea. The NTS is overseen by the Ministry of Economy and Finance. 

Yes. Employers pay mandatory payroll taxes that go towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds.  

Payroll taxes and mandatory contributions are deducted at source from monthly payroll. 

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