South Korea

Last Update by Julie, 22 Nov 2024

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Exchange Rate

22 Jan 2025

 

Cost of Living

Indicative value for a working adult in a city: Seoul

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (KRW)
McDonalds Set Meal 8,000
Monthly Train and Bus Tickets 60,000
3 Bedrooms Rental (City Center) 3,600,000
3 Bedrooms Rental (Outskirt) 1,997,000

Current Inflation Rate

5%

Wage

Minimum Wages

  • KRW 2,060,740 per month or KRW 9,860 per hour as of 1 January 2024.

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (KRW)
Entry-Level
Fresh Graduate
 2.5 million
Mid-Level
5 Years
 4.5 million
Experienced & Managerial Level
10 Years
 10 million
Specialized & Senior-Level
15 Years
 above 15 million

Annual Salary Growth

5.1%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
National Pension (NP) 4.5%
4.5%
All staff, maximum monthly pension capped at KRW 265,500
Medical Insurance 3.545% - All staff
Long Term Care Contribution 12.95%
Based on Medical Insurance 		0% All staff
Industrial Accident Compensation Insurance 0.86% 0% All staff
Damage Relief for Asbestos Damages 0.006% 0% All staff
Employment Insurance (EI) 1.75% 0.9% All staff
National Health Insurance (NHI) 3.999% 3.999% All staff, contribution capped at KRW 8,824,598
Handicapped Employment Levy 3.1% - 3.8% - All staff
Wage Claim Levy 0.06% - All staff
Business Tax 0.5% - All staff

Other Benefit

Other common employment benefits in South Korea include:

  • Education Assistance: Up to USD30,000 per year at International Schools
  • Retirement Allowance: Approximately KRW 90,000 per month
  • Transportation Allowance: Approximately KRW 20,000 per month
  • Phone Allowance: Approximately KRW 45,000 per month

Income Tax

Residents

  • Tax period: 1 Jan till 31 Dec
    The filing start date: 1 May of the following year
    The filing due date: 31 May of the following year

Country Level

Taxable Income Rate
0 – 14,000 6%
14,000 – 50,000 15%
50,000 – 88,000 24%
88,000 – 150,000 35%
150,000 – 300,000 38%
300,000 – 500,000 40%
500,000 – 1,000,000 42%
> 1,000,000 45%

Non-residents

  • Flat rate 19%

Working Hours

Statutory

40 hours
8 hours a day, 5 days a week

Overtime

Up to 12 hours a week.

  • Workdays and Public Holidays: 150% of normal rate of pay
  • Weekends/Holidays: 200% of normal rate of pay
  • Weekends/Holidays (from 22:00 to 06:00): 250% of normal rate of pay
  • Time Off in Lieu: Employees may receive time off in lieu of overtime hours worked, subject to agreement by both parties

Employment Contract

Permanent

Refer to the employment contract signed

Contract Format

Written in Korean. Bilingual contracts are also accepted.

Payroll Currency

KRW

Probation

Typical practice 3 - 6 months

Contract Period

No minimum duration

Termination

Refer to the employment contract signed

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation 30 days 30 days 30 days
Notice Period - Regular 30 days 30 days 30 days
Severance Pay No severance pays if worked less than 1 year Severance Pay: 1 month's salary for each full year of service Average daily wage × 30 days No severance pays if worked less than 1 year Severance Pay: 1 month's salary for each full year of service Average daily wage × 30 days No severance pays if worked less than 1 year Severance Pay: 1 month's salary for each full year of service Average daily wage × 30 days

Public Holiday

13 days

Country Level

Date Name
01 Jan New Year's Day
27 Jan - 30 Jan Seollal Holiday
01 Mar - 03 Mar Independence Movement Day
01 May Labor Day
05 May - 06 May Children's Day
06 Jun Memorial Day
15 Aug Liberation Day
03 Oct National Foundation Day
05 Oct - 08 Oct Chuseok Holiday
09 Oct Hangeul Proclamation Day
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 15 working days if worked < 292 days All staff with 1 year of service. Accrual of 1 day for every 2 years of service, capped at 25 days.
Maternity Leave 90 working days
120 working days for twins. 		All expectant mothers with 1 years' service
Paternity Leave 10 working days Available to all eligible male employees; must be used within 90 days after the delivery date and can be divided into two separate occasions.
Menstruation Leave 1 day per month All female staff
Nursing Leave 30-mins paid break 2 times a day. All eligible mothers with children under 12 months who have returned to work.
Childcare Leave and Reduced Work Hours 1 - 2 years All eligible mothers who have child under 8;
i. 1 year of childcare leave plus 1 year of reduced work hours.
ii. 6 months of childcare leave plus 1 year and
iii. 6 months of reduced work hours; or no childcare leaves plus 2 years of reduced work hours.

Reference

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