- Country Information
- South Korea
In this article...
South Korea
- What Onboarding Documents shall Employee provide for enrollment？
- What are required for your reimbursement claming on expense In Korea？
- What items of remunerations are tax exemptions in Korea？
- Horizons Payroll Calendar - Korea 2024
- What are the Horizons Work Rules in South Korea?
- What is the minimum wage notice in South Korea?
- What types of Employment Agreements does Horizons offer in South Korea?
- What is the standard Probation Period in South Korea?
- What are the Working Hours and Overtime Regulations in South Korea?
- What are the Sick Leave regulations in South Korea?
- What are the Annual Leave Regulations in South Korea?
- What are the Paid and Unpaid Leave entitlements in South Korea?
- What are the Allowances and Bonuses in South Korea?
- What is the Minimum Wage and Salary Payment Structure in South Korea?
- What are the Personal Income Tax regulations in South Korea?
- What are the Social Security Contributions in South Korea?
- Can Employment Agreements be backdated in South Korea?
What are the Social Security Contributions in South Korea?
South Korea's social security system includes several types of insurance and contributions designed to provide workers with various benefits.
Workers Compensation Insurance (WCI)
- Purpose: Provides coverage for industrial disasters and accidents.
- 2024 Rate: Ranges from 0.76% to 18.6% of total income, depending on the type of business and industry.
National Health Insurance (NHI)
- Purpose: Covers general health care costs.
- 2024 Rate: 3.545% of total income.
- Maximum Salary Basis: Contributions are calculated based on a maximum salary of KRW 7,047,900 per month.
Long Term Care Insurance
- Purpose: Part of the National Health Insurance, covering long-term care needs.
- 2024 Rate: 0.4591% of total income.
- Contribution: Included within the NHI contributions.
National Pension Fund (NP)
- Purpose: Provides retirement benefits.
- 2024 Rate: 4.5% of total income.
- Maximum Salary Basis: Calculated based on a maximum salary of KRW 5,900,000 per month.
Exemption Conditions for NP: Employees covered by social security in a country with which South Korea has a totalization agreement may be exempt from contributing to the National Pension Fund to avoid double taxation.
Employment Insurance (EI)
- Purpose: Provides unemployment benefits and other employment-related protections.
- 2024 Rate: Approximately 1.15% of total income, though this may vary based on the number of employees and industry specifics.
For Expats: Expatriates working in South Korea should verify their social security status and contributions, especially if they are covered by social security in their home country or have private medical insurance.
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