Social security
in South Korea.

SALARY PAYMENT IN South Korean Won (KRW, ₩)

CONTRACT LANGUAGES Korean / English

PAYROLL TAX 16.43% – 34.94%

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Social security in South Korea – Overview

South Korea’s social security program is considered developed, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in South Korea, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about South Korea’s social security program.

What does the social security system in South Korea cover?

South Korea’s social security system covers economic risks, such as universal healthcare, the National Pension fund, Employment Insurance, and Industrial Accident Compensation Insurance.

Universal Healthcare is funded and distributed through the National Health Insurance (NHI) scheme. Both employers and employees contribute towards National Health Insurance.

What are the mandatory contributions for employees to social security in South Korea?

All employees in South Korea must make contributions towards the National Pension fund, the National Health Insurance scheme, and Unemployment Insurance.

For 2023, social security contributions for employees in South Korea are as follows:

National Pension: 9% of monthly salary up to KRW 5.53 million (the minimum payable is KRW 0.35 million). The national pension contribution is split equally between employer and employee, i.e. 4.5% each.
National Health Insurance: 7.09% of monthly salary (plus 12.27% of the health insurance premium for long-term care contributions). The employer and the employee split the National Health Insurance contribution equally, i.e 3.545% each.
Unemployment Insurance: 1.8% of monthly salary. The employer and the employee split the contribution 50:50, i.e. 0.9% each.

Therefore, minimum employee contributions towards social security in South Korea for 2023 equate to 8.945%.

What are the mandatory contributions for employers to social security in South Korea?

All South Korean employers make mandatory contributions towards the National Pension fund, the National Health Insurance scheme, Unemployment Insurance, and the Industrial Accident Compensation Insurance scheme.

In 2023, employer contributions towards social security are as follows:

National Pension: 9% of monthly salary up to KRW 5.53 million (the minimum payable is KRW 0.35 million). The national pension contribution is split equally between employer and employee, i.e. 4.5% each.

National Health Insurance: 7.09% of monthly salary (plus 12.27% of the health insurance premium for long-term care contributions). The employer and the employee split the National Health Insurance contribution equally, i.e 3.545% each.
Unemployment Insurance: 1.8% of monthly salary. The employer and the employee split the contribution 50:50, i.e. 0.9% each.
Industrial Accident Compensation Insurance: employers contribute between 0.6% and 18.5% of monthly salary, depending on their industry.

Minimum employer contributions towards social security in South Korea total ≈9.545%.

How do mandatory contributions compare to the surrounding countries?

To the north, South Korea has a militarized land border with North Korea, but the country shares maritime borders with China and Japan.

Social security contributions in South Korea are, on average, lower, than those in the surrounding countries:

South Korea: ≈9.545%
China: ≈27.5%
Japan: ≈15.87%

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

How much do employers need to contribute to social security in South Korea?

Employers in South Korea must contribute a minimum of 9.545% towards the system of social security.

What situations does social security cover for employees in South Korea?

South Korea’s social security system covers for certain economic risks. Employees benefit from the National Pension fund, the National Health Insurance scheme, as well as Unemployment Insurance.

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