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.

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

6.6%

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

16%

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

26.4%

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

38.5%

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

41.8%

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

44%

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

46.2%

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

49.5%

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