What Gets Deducted From Your Monthly Pay (4 Major Insurances, Etc.)

You get a payslip every month — it's worth understanding it at least once.

한국어 · 日本語 · 中文

Foreign employees' payslips show the same deductions as Korean employees': income tax, local income tax, and the four major social insurances (national pension, health insurance, employment insurance, industrial accident insurance). Income tax is withheld as an estimate under the simplified withholding table based on pay level and number of dependents; each insurance is charged at a set rate, split roughly in half between employee and employer (industrial accident insurance is employer-paid in full).

As of 2026, the national pension rate is 9.5% (4.75% employee share) and the health insurance rate is 7.19% (half employee-paid). Depending on your home country, a social security agreement with Korea may exempt or adjust your national pension enrollment.

Deduction lines on a Korean payslip

Income tax (simplified withholding table) + local income tax (10% of income tax)
National pension: 4.75% employee share (as of 2026)
Health insurance premium + long-term care insurance (a percentage of the health premium)
Employment insurance (employee share for unemployment benefits)

If your home country has a social security agreement with Korea

If your country has a social security agreement with Korea, short-term assigned workers may be exempt from national pension enrollment, or have their coverage periods from both countries counted together. Check with the National Pension Service for whether your country has an agreement and what conditions apply.

Frequently Asked Questions

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