The Republic of Korea

South Korea stands as a leading industrial economy in Asia, renowned for its technological advancements and robust workforce. Navigating the intricacies of payroll, taxation, and employment regulations is essential for businesses operating or planning to establish a presence in the country.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
South Korean Won (KRW)
Payroll Frequency
Monthly
Employer Taxes
16.34% to 34.84%

Overview

Population
~ 51.7 million
Language
Korean
Capital
Seoul
Currency
South Korean Won (KRW)
Country code
+82
Min wage
822,480 KRW/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

16.34% - 34.84%

Tax Breakdown

Personal Income Tax (PIT):

0 – KRW 12,000,000
6%
KRW 12,000,001 – KRW 46,000,000
15%
KRW 46,000,001 – KRW 88,000,000
24%
KRW 88,000,001 – KRW 150,000,000
35%
KRW 150,000,001 – KRW 300,000,000
38%
KRW 300,000,001 – KRW 500,000,000
40%
KRW 500,000,001 – KRW 1,000,000,000
42%
Above KRW 1,000,000,000
45%

Corporate Income Tax (CIT):

Taxable Income (KRW):

0 – 200 million
9%
200 million – 20 billion
19%
20 billion – 300 billion
21%
Above 300 billion
24%

Social Security Contributions:

Employer Contributions:

National Pension Fund
4.5%
National Health Insurance
3.545%
Long-Term Care Contribution
6.405%
Employment Insurance
1.05%–1.65% (based on number of employees)
Industrial Accident Compensation Insurance
0.76%–18.5% (industry-dependent)

Employee Contributions:

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

VAT

VAT

10%

Tax Calculation for Korea South
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KR
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Korea South typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Employment and Labor and the National Tax Service

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Korea South
When drafting an employment contract for employees in Korea South, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Unpaid for non-work-related reasons; paid leave may be provided for work-related injuries
Maternity leave
  • 90 days (split into 45 days before and 45 days after childbirth); increased to 120 days in cases of complicated or multiple births
Paternity leave
  • 10 days

Parental Leave:

  • 15 to 35 reduced working hours per week for up to one year for childcare of children aged eight years and under 

Annual Leave
  • Minimum of 12 days per year
19 Public holidays in Korea South

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
28th
Chinese New Year
29th
Nyepi (Balinese Day of Silence)
7th
Idul Fitri
18th
Good Friday
20th
Easter Sunday
1st
Labor Day
12th
Waisak Day (Buddha's Birthday)
13th
Joint Holiday for Waisak Day
29th
Ascension Day of Jesus Christ
30th
Joint Holiday after Ascension Day
1st
Pancasila Day
6th
Idul Adha
9th
Joint Holiday for Idul Adha
27th
Islamic New Year
17th
Independence Day
5th
Prophet Muhammad's Birthday
25th
Christmas Day
26th
Joint Holiday after Christmas Day
  • 1 Jan: New Year's Day
  • 1 Feb to 3 Feb: Seollal
  • 1 Mar: March 1st Movement Day
  • 5 May: Children's Day
  • 8 May: Buddha's Birthday
  • 6 Jun: Memorial Day
  • 15 Aug: Liberation Day
  • 9 Sep to 11 Sep: Chuseok
  • 3 Oct: National Foundation Day
  • 9 Oct: Hangeul Day
  • 25 Dec: Christmas Day

Termination Process

Notice Period

  • Employee-Initiated: 1 month
  • Employer-Initiated: 1 to 3 months, depending on length of service

Severance Pay

Mandatory for employees with more than 1 year of service; calculated based on length of service and reason for termination

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Maximum Duration: 3 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Korea South
with RemotePass

South Korea offers a strategic gateway to the East Asian market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in South Korea, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Korea South.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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The Republic of Korea

South Korea stands as a leading industrial economy in Asia, renowned for its technological advancements and robust workforce. Navigating the intricacies of payroll, taxation, and employment regulations is essential for businesses operating or planning to establish a presence in the country.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
South Korean Won (KRW)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
16.34% to 34.84%

نظرة عامة

التركيبة السكانية
~ 51.7 million
اللغة
Korean
العاصمة
Seoul
العملة
South Korean Won (KRW)
رمز الاتصال الدولي
+82
الحد الأدنى للأجور
822,480 KRW/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

16.34% - 34.84%

تحصيل الضرائب

Personal Income Tax (PIT):

0 – KRW 12,000,000
6%
KRW 12,000,001 – KRW 46,000,000
15%
KRW 46,000,001 – KRW 88,000,000
24%
KRW 88,000,001 – KRW 150,000,000
35%
KRW 150,000,001 – KRW 300,000,000
38%
KRW 300,000,001 – KRW 500,000,000
40%
KRW 500,000,001 – KRW 1,000,000,000
42%
Above KRW 1,000,000,000
45%

Corporate Income Tax (CIT):

Taxable Income (KRW):

0 – 200 million
9%
200 million – 20 billion
19%
20 billion – 300 billion
21%
Above 300 billion
24%

Social Security Contributions:

Employer Contributions:

National Pension Fund
4.5%
National Health Insurance
3.545%
Long-Term Care Contribution
6.405%
Employment Insurance
1.05%–1.65% (based on number of employees)
Industrial Accident Compensation Insurance
0.76%–18.5% (industry-dependent)

Employee Contributions:

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

ضريبة القيمة المضافة

ضريبة القيمة المضافة

10%

حساب الضريبة في The Republic of Korea
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KR
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في The Republic of Korea عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Employment and Labor and the National Tax Service

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في The Republic of Korea
عند إعداد عقد عمل للموظفين في The Republic of Korea يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Unpaid for non-work-related reasons; paid leave may be provided for work-related injuries
إجازة الأمومة
  • 90 days (split into 45 days before and 45 days after childbirth); increased to 120 days in cases of complicated or multiple births
إجازة الأبوة
  • 10 days

Parental Leave:

  • 15 to 35 reduced working hours per week for up to one year for childcare of children aged eight years and under 

الإجازة السنوية
  • Minimum of 12 days per year
19 عطلات رسمية في The Republic of Korea

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
28th
Chinese New Year
29th
Nyepi (Balinese Day of Silence)
7th
Idul Fitri
18th
Good Friday
20th
Easter Sunday
1st
Labor Day
12th
Waisak Day (Buddha's Birthday)
13th
Joint Holiday for Waisak Day
29th
Ascension Day of Jesus Christ
30th
Joint Holiday after Ascension Day
1st
Pancasila Day
6th
Idul Adha
9th
Joint Holiday for Idul Adha
27th
Islamic New Year
17th
Independence Day
5th
Prophet Muhammad's Birthday
25th
Christmas Day
26th
Joint Holiday after Christmas Day
  • 1 Jan: New Year's Day
  • 1 Feb to 3 Feb: Seollal
  • 1 Mar: March 1st Movement Day
  • 5 May: Children's Day
  • 8 May: Buddha's Birthday
  • 6 Jun: Memorial Day
  • 15 Aug: Liberation Day
  • 9 Sep to 11 Sep: Chuseok
  • 3 Oct: National Foundation Day
  • 9 Oct: Hangeul Day
  • 25 Dec: Christmas Day

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 1 month
  • Employer-Initiated: 1 to 3 months, depending on length of service

Severance Pay

Mandatory for employees with more than 1 year of service; calculated based on length of service and reason for termination

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Maximum Duration: 3 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في The Republic of Korea
مع ريموت باس

South Korea offers a strategic gateway to the East Asian market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in South Korea, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك The Republic of Korea.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

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