Last updated: September 27, 2026
Reviewed by Song I Yoon, USCPA, Director at STAR TAX & BPO
Employers in Korea must reflect several confirmed social insurance changes in their 2026 payroll. The most important updates are the National Pension contribution increase to 9.5%, the National Health Insurance rate of 7.19%, the Long-Term Care Insurance income-based rate of 0.9448%, and the revised National Pension income ceiling from July 2026.
This guide summarizes the 2026 Korea social insurance contribution rates for foreign-invested companies, overseas HR teams and payroll managers. Actual coverage can differ for foreign employees depending on nationality, visa status and applicable social security agreements.
2026 Korea Social Insurance Contribution Rates at a Glance
| Program | Employee | Employer | 2026 key point |
|---|---|---|---|
| National Pension | 4.75% | 4.75% | 9.5% total. From July 2026, the standard monthly income range is KRW 410,000 to KRW 6,590,000. |
| National Health Insurance | 3.595% | 3.595% | 7.19% total, generally shared equally. |
| Long-Term Care Insurance | 50% of the premium | 50% of the premium | 0.9448% of income, calculated through the health insurance premium. |
| Employment Insurance | 0.9% | 1.15%–1.75% | Employer rate includes 0.9% for unemployment benefits plus 0.25%–0.85% for employment stabilization and vocational skills development. |
| Workers’ Compensation Insurance | None | Industry-specific | Employer-funded. The 2026 average rate remains 1.47%, but the actual rate depends on the business classification. |
Rates above are general statutory rates for employees. Special rules may apply to seafarers, construction workers, artists, platform workers and other categories.
1. National Pension: 9.5% from 2026
The National Pension contribution rate increased from 9.0% to 9.5% in 2026. The employer and employee generally contribute 4.75% each.
- January 1–June 30, 2026: standard monthly income floor KRW 400,000; ceiling KRW 6,370,000
- July 1, 2026–June 30, 2027: floor KRW 410,000; ceiling KRW 6,590,000
The July adjustment matters for high-income employees because the maximum pension contribution changes even when salary remains the same. Employers should update payroll parameters from the July payroll and review expatriate arrangements affected by tax equalization or hypothetical deductions.
2. National Health Insurance: 7.19%
The 2026 National Health Insurance rate is 7.19% of monthly remuneration. For employees, the premium is generally divided equally:
- Employee: 3.595%
- Employer: 3.595%
Payroll teams should apply the current remuneration base, monthly ceiling and year-end health insurance remuneration reconciliation rules. Bonuses and other taxable compensation can affect the final premium even if the regular monthly payroll was processed correctly.
3. Long-Term Care Insurance: 0.9448%
The 2026 Long-Term Care Insurance rate is 0.9448% of income, up from 0.9182% in 2025. Operationally, the premium is calculated as:
Health insurance premium × 0.9448% ÷ 7.19%
The resulting Long-Term Care Insurance premium is generally shared equally between employer and employee together with the health insurance premium.
4. Employment Insurance
The unemployment-benefit portion remains 0.9% for the employee and 0.9% for the employer. Employers also pay an additional contribution for employment stabilization and vocational skills development:
- Fewer than 150 employees: 0.25%
- 150 or more employees, subject to the applicable classification: 0.45%
- 150 to fewer than 1,000 employees, subject to the applicable classification: 0.65%
- 1,000 or more employees and certain public-sector employers: 0.85%
This produces a typical employer Employment Insurance rate of 1.15% to 1.75%. The exact rate depends on company size and whether the business qualifies as a preferentially supported enterprise.
5. Workers’ Compensation Insurance
Workers’ Compensation Insurance is paid entirely by the employer. The 2026 average rate remains 1.47%, including the commuting-accident component, while the actual rate varies by industry classification and risk level.
Foreign companies should confirm that the Korean entity’s industry code is correct. An incorrect classification can create recurring overpayments or underpayments and may require a retrospective adjustment.
Foreign Employee Coverage Requires a Separate Review
The contribution rate and the obligation to enroll are separate questions. For foreign employees:
- National Pension may depend on nationality, reciprocity and a social security agreement.
- National Health Insurance is generally mandatory for eligible employees, subject to limited exceptions.
- Employment Insurance treatment can depend on nationality and visa status.
- Workers’ Compensation Insurance generally protects employees regardless of nationality.
Employers should check coverage before the first payroll instead of assuming that all expatriates follow the same treatment.
2026 Payroll Checklist for Employers
- Apply the 9.5% National Pension rate from January 2026.
- Update the National Pension floor and ceiling from July 2026.
- Apply the 7.19% health insurance and 0.9448% long-term care rates.
- Confirm the company-size rate for Employment Insurance.
- Verify the Workers’ Compensation industry classification.
- Review foreign employee coverage by nationality, visa and social security agreement.
- Document payroll changes for overseas headquarters and employee communications.
Official Sources
- National Pension Service — contribution base and income limits
- National Health Insurance Service — 2026 insurance rates
- Employment Insurance — contribution rate guidance
- Ministry of Employment and Labor — 2026 Workers’ Compensation rates
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Korean Tax Expert | STAR TAX & BPO provides CPA-led payroll services in Korea, together with social insurance and tax support for foreign subsidiaries and branches. Senior professionals communicate directly with overseas HR and finance teams, with a target of replying to new service inquiries within one Korean business day.
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This article provides general information as of September 27, 2026. Individual coverage and contribution treatment should be confirmed based on the employee and company circumstances.
