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Employer of Record South Korea | Employee Benefits in South Korea

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Employer of Record services in South Korea offer extensive assistance with payroll cycles, including managing employer and employee contributions, ensuring compliance with minimum wage regulations, facilitating the hiring process for employees, contractors, and expatriates, conducting background checks, drafting employment contracts, facilitating onboarding procedures, managing employee benefits, administering social security programs, coordinating healthcare and insurance coverage, managing leave policies, taking into account public holidays, facilitating work permit and work visa processes, overseeing probation periods, notice periods, termination, and severance procedures, as well as providing guidance on personal income tax obligations.

CountrySouth Korea
Time zoneUTC +9
Total Time zones1
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline5/1~5/31 following year
Financial Year1 January to 31 December
CurrencySouth Korean Won (KRW)
Date Formatyyyy/mm/dd
Fiscal Year1 January- 31 December

Employer Payroll Contributions in South Korea

Employers% of Gross Salary
Employer Payroll Contributions
National Pension 4.5%
(taxable monthly income capped at 5,240,000.00 KRW)
National Health Insurance 3.92%
(monthly contribution capped at 8,203,680.00 KRW)
Employment Insurance 1.05% - 1.65%
(varies by industry) (increasing to 1.15% to 1.75% effective from 1st July 2022)
Long term care insurance 5.76%
(monthly contribution capped at 345,600 KRW)
Worker Accident Compensation Insurance 0.70%-18.60%
(rate is dependent on the type of business)
Resident Tax0.5%
Total Employment Cost16.43% - 34.93%

Employee Payroll Contributions in South Korea

Employees% of Gross Salary
Employee Payroll Contributions
National Pension 4.5%
(taxable monthly income capped at 5,240,000.00 KRW)
National Health Insurance 3.92%
(monthly contribution capped at 7,047,900.00 KRW)
Long term care insurance 6.86%
(monthly contribution capped at 345,600 KRW)
Employment Insurance0.8%
(varies by industry) (increasing to 0.90% effective from 1st July 2022)
Total Employee Cost0.16%

Personal Income Tax in South Korea

Income Tax
Income RangeTax Rate
up to 12 million KRW0.06%
12 million to 46 million KRW0.15%
46 million to 88 million KRW0.24%
88 million to 150 million KRW0.35%
150 million to 300 million KRW0.38%
300 million to 500 million KRW0.4%
500 million to 1 billion KRW0.42%
1 billion and up KRW0.45%

Minimum Wages in South Korea

Minimum Wage
Minimum WageThe National Minimum Wage in South Korea is 9,160 KRW per hour.

Payroll Cycle in South Korea

Payroll CycleMonthly
13th SalaryThere is no legislation for 13th-month payments in South Korea.

Hiring Options in South Korea


Individuals can be employed in South Korea either as regular workers on an indefinite basis or as non-regular workers on a fixed-term basis for up to 2 years. However, if a fixed-term employee is employed for a period exceeding 2 years, they may be considered as having an indefinite employment status.

Employees may work either full-time or part-time, depending on their arrangement with the employer.

Independent contractor

Companies must exercise caution when engaging independent contractors to ensure they do not inadvertently establish an employer-employee relationship, which would entail providing all the benefits and protections afforded to employees, such as severance pay and employment security. The key differentiating factor between employees and contractors lies in the level of supervision and control exercised by the company over the individual.

Agency worker

The engagement of agency workers in South Korea is regulated by the Act on the Protection of Temporary Agency Workers. These individuals, referred to as "dispatched workers," are employed by a temporary work agency and provide services to a user company under the direction and instruction of the user company. The employment relationship is established between the temporary work agency and the dispatched worker.

Employment Contracts and Policies in South Korea

Employment Contracts

According to the Labor Standards Act (LSA) in South Korea, it is mandatory for employers to have written employment contracts with their employees. These contracts must include essential details such as wages, working hours, recess periods, weekly paid days off, and paid annual leave. If an agreement does not meet the requirements set by the LSA and other applicable laws, it will be considered void to the extent that it fails to meet the legal standards.

Probationary Periods

While there is no fixed statutory period for probation, employers and employees can agree upon a probationary period. Typically, probation periods in South Korea last between 3 to 6 months.


Companies with 10 or more employees in South Korea are required to establish rules of employment. These rules must cover essential working terms and conditions as defined by the LSA, including working hours, wages, retirement, awards, discipline, safety and health, and holidays. When creating the rules of employment, employers must seek input from either the majority union representing the employees or, if no such union exists, a majority of the employees. These comments, along with the rules of employment written in Korean, must be filed with the Ministry of Employment and Labor (MOEL).

While there are no other mandatory policies, the Occupational Health and Safety Act (OHSA) establishes general standards for occupational health and safety. Most workplaces are required to form an industrial safety and health committee that regularly reports to the government.

Third-Party Approval

Rules of employment must be filed with the MOEL, but apart from that, there is no need for third-party approval in South Korea.

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