- Four social insurances and two taxes come out of every Korean paycheck.
- In 2026 employees pay about 9.7% of salary in social insurance, plus income tax.
- Meal allowances up to ₩200,000 a month are tax-free and insurance-free.
- Many foreign employees can get their National Pension back as a lump sum when they leave Korea.
The lines on your payslip
A Korean payslip (급여명세서) has two halves: what you earned (지급 내역) and what was taken out (공제 내역). Here is what the common Korean labels mean.
| Korean label | Meaning |
|---|---|
| 기본급 | Base pay |
| 식대 | Meal allowance (tax-free up to ₩200,000 a month) |
| 연장·야간·휴일근로수당 | Overtime, night and holiday pay |
| 국민연금 | National Pension |
| 건강보험 | National Health Insurance |
| 장기요양보험 | Long-term Care Insurance |
| 고용보험 | Employment Insurance |
| 소득세 | Income tax |
| 지방소득세 | Local income tax (10% of income tax) |
| 실지급액 / 차인지급액 | Net pay — what reaches your bank account |
2026 rates (employee share)
| Item | You pay | Employer pays |
|---|---|---|
| National Pension | 4.75% | 4.75% |
| Health Insurance | 3.595% | 3.595% |
| Long-term Care | 13.14% of health premium | same |
| Employment Insurance | 0.9% | 0.9% + more |
| Industrial Accident Insurance | none | all |
National Pension is charged on income between ₩410,000 and ₩6,590,000 a month (July 2026 – June 2027), so above that cap the pension deduction stops growing. The pension rate is rising every year until it reaches 13% (6.5% for you) in 2033.
Example: ₩3,000,000 a month
| National Pension | ₩142,500 |
| Health Insurance | ₩107,850 |
| Long-term Care | ₩14,170 |
| Employment Insurance | ₩27,000 |
| Social insurance total | ₩291,520 |
Income tax depends on your salary, dependents and allowances, so use the calculator for your own numbers.
Take-home Pay Calculator →Enter your salary to see every deduction for 2026Notes for foreign employees
Getting your National Pension back
When you leave Korea for good you may be able to claim a lump-sum refund (반환일시금) of your pension contributions plus interest. In general it is available if:
- you worked on an E-8, E-9 or H-2 visa (regardless of nationality), or
- your country has a social security agreement with Korea that allows it, or
- your country gives Koreans the same right (reciprocity).
Some nationalities are instead exempt from paying in the first place. Ask the National Pension Service (1355, foreign-language support available) before you leave — there is also a counter at Incheon Airport.
Health insurance
Employees are covered through work. Foreign residents who are not covered at work generally have to join as local subscribers after living in Korea for six months.
Employment insurance
Whether it is mandatory depends on your visa. For example, residents with F-2, F-5 or F-6 status are generally covered automatically, while many work visas such as E-9 can join optionally. Being insured is what lets you claim unemployment benefits later, so it is worth checking with your employer.
A flat income-tax option
Foreign employees may be able to choose a flat 19% income tax rate on total pay instead of the normal progressive rates. It usually only helps high earners — compare both at year-end tax settlement.
Year-end tax settlement
The tax taken each month is an estimate. Every January–February your employer recalculates the year's tax using deductions such as card spending, insurance, medical bills and rent, and you either get money back or pay a little more in your February or March pay.
FAQ
How much of my salary goes to insurance in Korea?
In 2026 about 9.7% for employees: 4.75% pension, 3.595% health, about 0.47% long-term care and 0.9% employment insurance. Income tax is extra.
Why does my net pay change in April?
Health insurance is recalculated every April using last year's actual pay. If your pay went up, you may see an extra deduction that month.
Is the meal allowance taxed?
Up to ₩200,000 a month of meal allowance is tax-free and not charged social insurance, which slightly raises your take-home pay.
Sources: National Pension refund guide (Glass Wallet) · Foreign worker social insurance (Shopl&Company)