Payroll taxes
in South Korea.

SALARY PAYMENT IN South Korean Won (KRW, ₩)

CONTRACT LANGUAGES Korean / English

PAYROLL TAX 16.43% – 34.94%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

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South Korea

What is the average employer tax rate in South Korea?

In December 2022, South Korea’s National Assembly approved the 2023 Tax Reform Bill. The bill introduced reductions of one percentage point in each of South Korea’s four corporate income tax brackets.

See the 2023 CIT tax rates below:

South Korea – 2023 CIT tax rates

Taxable income (KRW)	Tax rate
0 – 200 MM	9%
200 MM – 20 B	19%
20 B – 300 B	21%
300 B+	24%

What is the average employee tax rate in South Korea?

South Korea has progressive rates of individual income tax. The 2023 Tax Reform Bill increased the personal allowance for employees on low to middle incomes.

South Korea – Individual Income Tax

Taxable Income (KRW)	Tax rate 2023
0 – 14 MM	6%
14 MM – 50 MM	15%
50 MM – 88 MM	24%
88 MM – 150 MM	35%
150 MM – 300 MM	38%
300 MM – 500 MM	40%
500 MM – 1 B	42%
1 B +	45%

Note that foreigners working in South Korea can opt to be taxed at a flat rate of 19% on income earned through employment in South Korea.

Employer contributions in South Korea

Employers make mandatory contributions towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds. Taxes and mandatory contributions are deducted at source from monthly payroll.

South Korea – Employer contributions

Contribution item	Contribution rate
National Pension Fund	4.5% (up to KRW 5.53M)
National Health Insurance	3.545%
Long Term Care Contribution	6.405%
Employment Insurance	1.05-1.65% (based on no. of employees)
Industrial Accident Compensation Insurance Variable based on industry	Min. 0.76%

Employee contributions in South Korea

Employees in South Korea make mandatory contributions to the National Pension fund; the National Health Insurance fund; and Employment Insurance.

Employee contributions for 2023:

South Korea – Employee contributions

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

Hiring in South Korea, Made Easy

Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of South Korea called?

The National Tax Service is responsible for collecting tax revenues in South Korea. The NTS is overseen by the Ministry of Economy and Finance.

Is there an employer payroll tax contribution in South Korea?

Yes. Employers pay mandatory payroll taxes that go towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds.

How does the payroll tax system of South Korea work?

Payroll taxes and mandatory contributions are deducted at source from monthly payroll.

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