How does Good Balance Global hire employees in South Korea?

As your Employer of Record (EOR), we become the legal employer in South Korea. We issue a Labor Standards Act-compliant contract, enroll the employee in the 4 major social insurances, and run monthly payroll in KRW. You manage the work.

Is severance pay mandatory in South Korea?

Yes. Employees with at least 1 year of service are entitled to at least 30 days' average wages for each year worked. Many employers fund this through a retirement pension plan. Budget about 8.33% of annual pay on top of salary.

What changed for National Pension in 2026?

The National Pension rate rose from 9% to 9.5% in January 2026, split equally at 4.75% each. The reform raises the rate by 0.5 percentage points a year until it reaches 13%.

Back

Payroll and benefits guide

South Korea

CapitalSeoul

Fiscal Year1 January - 31 December

Date Formatyyyy/mm/dd

CurrencyKRW (South Korean Won)

Payroll FrequencyMonthly

Employer Taxes10.53% – 29.13%

Employee Costs9.72%

Overview

Languages: Korean
Income tax: 6% – 45%
VAT: 10%

Contributions

Employer

4.75%

National PensionMonthly income ceiling KRW 6,590,000 from July 2026

4.07%

National Health Insurance, including long-term care3.595% health insurance plus long-term care at 13.14% of the health premium

1.15% – 1.75%

Employment Insurance0.9% unemployment benefit plus 0.25%–0.85% job stability and skills development, based on company size

0.56% – 18.56%

Workers' Compensation InsuranceSet by industry

10.53% – 29.13%

Total employer cost

Employee

4.75%

National PensionMaximum KRW 313,025/month (July 2026 – June 2027)

4.07%

National Health Insurance, including long-term care

0.9%

Employment Insurance

9.72%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

National Tax Service (NTS)

Paid To

Income tax and local income tax withheld from salaries

Due Date

By the 10th of the following month

Method

Online through Hometax

Authority Payment

National Health Insurance Service (NHIS)

Paid To

Pension, health, long-term care, employment, and workers' compensation premiums (combined billing)

Due Date

By the 10th of the following month

Method

Online through the 4 Major Social Insurances portal or bank transfer

Minimum Wage & Working Hours

Minimum wage: KRW 10,320 / Hourly; Effective 1 January 2026
Standard working hours: 40 hours per week, 8 hours per day; Night work (10 pm – 6 am) earns a 50% premium. Holiday work earns 50% for the first 8 hours and 100% after that
Overtime: Up to 12 hours per week, paid at 150% of ordinary wages

Leave

Annual leave15–25 days1 day per month in the first year (up to 11); 15 days after 1 year with 80% attendance, plus 1 day every 2 years, to a maximum of 25
Sick leaveNo statutory paid sick leaveSet by work rules or the contract; work-related injury and illness are covered by workers' compensation insurance
Maternity leave90 days100 days for premature births and 120 days for multiple births. The first 60 days (75 for multiple births) are paid, with employment insurance funding part or all of the pay
Paternity leave20 working daysPaid; can be split up to 4 times within 120 days of the birth
Parental leaveUp to 1 yearPer child under 8; extendable to 18 months if both parents take at least 3 months. Benefits paid by employment insurance
Public holidaysAbout 15 daysPaid public holidays apply at workplaces with 5 or more employees

Leave type	Duration	Notes
Annual leave	15–25 days	1 day per month in the first year (up to 11); 15 days after 1 year with 80% attendance, plus 1 day every 2 years, to a maximum of 25
Sick leave	No statutory paid sick leave	Set by work rules or the contract; work-related injury and illness are covered by workers' compensation insurance
Maternity leave	90 days	100 days for premature births and 120 days for multiple births. The first 60 days (75 for multiple births) are paid, with employment insurance funding part or all of the pay
Paternity leave	20 working days	Paid; can be split up to 4 times within 120 days of the birth
Parental leave	Up to 1 year	Per child under 8; extendable to 18 months if both parents take at least 3 months. Benefits paid by employment insurance
Public holidays	About 15 days	Paid public holidays apply at workplaces with 5 or more employees

Termination

Probation period: Commonly 3 months; the notice rule does not apply in the first 3 months of employment
Notice period: 30 days, or 30 days' pay in lieu
Severance pay: Mandatory: at least 30 days' average wages per year of service, after 1 year
13th salary: Not mandatory
Notes: Dismissal requires a justifiable reason and written notice of the grounds

Benefits

4 major social insurancesMandatory
National pension, health, employment, and workers' compensation insurance
Severance pay or retirement pension planMandatory
Statutory retirement benefit, often funded through a DB or DC plan
Meal allowanceCommon
Tax-exempt up to a monthly limit and common in pay packages

Visas & Work Permits

E-7 (Specially Designated Activities)
Requirements
Job offer in an eligible professional occupation and relevant degree or experience
D-8 (Corporate Investment)
For managers and specialists sent to a foreign-invested company in Korea

FAQ

Sources

Last updated: November 1, 2026

Download free guide

Get the complete South Korea payroll and benefits guide as a PDF.

How Can We Help?

Tell us who you want to hire or pay, and where. Our team will reply with next steps and a custom quote if you need one.