How take-home pay works in Korea
Korean employers withhold six items from your monthly salary. Four are social insurances (National Pension 4.75%, health insurance 3.595%, long-term care at 13.14% of the health premium, and employment insurance 0.9%) and two are taxes (income tax from the NTS withholding table and local income tax, 10% of income tax). Your employer pays a matching share of the insurances on top of your salary.
Notes for foreign employees
- National Pension: most foreign employees must join. Citizens of countries with a social-security agreement may be exempt, and many nationalities can claim a lump-sum refund when they leave Korea for good.
- Flat 19% option: foreign workers can choose a flat 19% income-tax rate (plus local tax) on total salary instead of the normal progressive rates. It usually helps only at high salaries; compare both at year-end settlement.
- Year-end tax settlement (연말정산) in January–February adjusts the tax withheld during the year; you may get a refund or owe more.
Non-taxable allowances such as a meal allowance of up to ₩200,000 per month reduce both tax and insurance premiums.
Rates and thresholds follow Korean rules in force for 2026. Results are estimates for planning, not legal or tax advice.
FAQ
Is the annual salary in Korea quoted before or after tax?
Before tax. Korean job offers quote gross annual pay (연봉), usually excluding severance. Divide by 12 for monthly gross unless your contract pays bonuses separately.
Can I get my National Pension back when I leave Korea?
Citizens of many countries can claim a lump-sum refund (반환일시금) after leaving Korea permanently. Eligibility depends on your nationality and treaties; check with the National Pension Service (NPS).
Read in Korean: 연봉 실수령액 계산기