2026 employee insurance rates
| Insurance | Employee share | Notes |
|---|---|---|
| National Pension | 4.75% | Total 9.5% (up from 9% in 2025). Monthly pay counted up to 6,590,000 won from July 2026. |
| Health insurance | 3.595% | Total 7.19% |
| Long-term care | 13.14% of health premium | About 0.47% of pay |
| Employment insurance | 0.9% | Some visa types are not covered or can opt in |
How income tax is estimated
Korean employers withhold tax each month from an official table, then settle the real amount in the year-end tax settlement (연말정산) in January to February. This calculator estimates your yearly tax the way the settlement does: earned income deduction, a 1.5 million won personal deduction per person, insurance premiums, the progressive rates (6% to 45%), the earned income tax credit and the 130,000 won standard credit, plus 10% local income tax. It does not include extra deductions such as card spending, rent or medical costs, which usually lower your tax further.
The 19% flat tax for foreigners
Foreign employees who started working in Korea by 31 December 2026 can choose a flat 19% income tax on total pay instead of the progressive rates, for up to 20 years from their first day of work. With local tax it is 20.9%. No deductions or credits apply, and tax-free allowances are counted as pay. It usually helps only high earners, so compare both columns above.
FAQ
Why is my payslip different?
Monthly withholding uses a simplified table and you may have chosen 80% or 120% withholding. Bonuses, overtime and the exact pension base (set from last year's pay) also change the numbers. The year-end settlement corrects the difference.
Do foreigners have to join the National Pension?
Most foreign employees aged 18 to 59 must join. Exceptions depend on your country (for example, if your country does not cover Koreans, or a social security agreement exempts you) and on some visa types such as D-2 students.