Salary & Tax
A Korean salary shrinks before it reaches your account. For foreigners working in Korea, here’s what gets taken out, why, and what actually lands there.
How is take-home pay decided?
Your take-home is your gross pay minus your share of the four social insurances, then minus income tax and local income tax. For typical salaries it’s usually about 85–90% of gross, and a bit lower at higher incomes.
Why is that? National Pension, health and employment insurance are fixed percentages of your pay, while income tax uses progressive brackets. So as your pay rises, the share taken out creeps up a little too.
What are the four social insurances, and how much do they take?
Your share of National Pension, health (plus long-term care) and employment insurance comes to about 9.7% of your pay. Industrial-accident insurance is paid entirely by your employer.
Why is that? They’re social insurance, and each one covers a different risk: retirement, medical care, unemployment and workplace injury. Once you’re enrolled, health insurance covers a large share of your medical bills. And National Pension can sometimes come back as a lump sum when you leave Korea.
Do foreigners go through year-end tax settlement too?
Yes. Foreigners with employment income go through year-end tax settlement (연말정산) too. It compares the tax you paid over the year with what you actually owe. You get money back if you overpaid, and pay the difference if you underpaid.
Why is that? The income tax withheld each month is only an approximation. Year-end tax settlement adds in deductions like medical costs, rent and donations, then squares up the difference. Foreigners can also choose a flat 19% rate instead of the progressive brackets, so you can pick whichever works out better for you.
Does tax differ by visa?
The base rate is the same for everyone. What you actually pay can change because of a tax treaty, choosing the flat 19% rate, or whether you count as a tax resident.
Why is that? Two things matter most: whether Korea counts you as a tax resident, and whether your home country has a tax treaty with Korea. The same salary can be taxed differently depending on how you file, so it’s worth checking once before your first year-end tax settlement.
Related calculators
Common terms
Before your first paycheck
- Get your payslipLook at gross, take-home and deductions every month
- Confirm insurance enrollmentMake sure you’re enrolled once you start, and keep your insurance card
- Review non-taxable itemsSee whether meals, transport and similar items count as non-taxable
- Gather year-end documentsKeep receipts for rent, medical costs and donations
Frequently asked
Two people on the same gross salary can take home different amounts. Your dependents, your non-taxable items, and whether you’re enrolled in the pension all move the number.
Sometimes. There are three routes: your nationality is on the pension service’s reciprocity list, your country’s agreement specifically covers the refund, or you were enrolled on E-9 or H-2 (any nationality). Check which route applies to you with the pension refund checker.
You miss any refund you were owed, and if you underpaid you may face a penalty. Your employer usually handles it, but you need to keep your own documents.