Korea’s 4 Major Insurances stand out distinctly from those of other countries, presenting numerous distinctive features. In this article, we aim to delve into the specifics of the Korean National Health Insurance within the 4 Major Insurances, highlighting its unique aspects. I. Brief Introduction of Korean National Health Insurance for Employees Mandatory Enrollment and National […]
Category Archives: Korean Payroll / HR
In the dynamic world of global business, cross-border mobility of employees has become a norm. Many companies send their employees abroad on assignments, and South Korea is no exception. For foreign employees stationed in Korea, one common practice is the adoption of NET payment contracts. Let’s delve into the concept of NET payment contracts and […]
Introduction: In South Korea, the tax settlement process for resigned employees involves several important steps. While specific details may vary, for the purpose of this blog, let’s assume that the employee’s salary and bonuses have been finalized. This article will cover the key aspects of the tax settlement process that every resigning employee should be […]
In Korea, there are strict regulations regarding the payment of severance pay when an employee leaves after a certain period of employment. Severance pay is generally calculated as 30 days of average wages for employees who have worked for one year or more. While this concept is familiar to most employees in Korea, foreign companies […]
When processing employee termination in Korea, there are several essential steps that need to be confirmed and followed. Sometimes, there are processes specific to Korea that may be unfamiliar to foreigners or foreign companies. Please note the following: Notice Period: Verify the notice period required for employee termination according to the Employment Contract (“EC”). This […]
South Korea’s payroll system When an employee is hired, he/she will receive monthly salary payments that will have taxes deducted from. Employees must pay income/resident taxes from their salary along with mandatory social insurance programs that employees need to be enrolled into immediately upon being hired. Withholding Income & Resident Taxes Plus Benefit Deductions Income/resident […]
There’re 4 major social insurances in Korea for all employees to be enrolled: 1) national pension, 2) national health insurance and long-term care insurance, 3) employment insurance and 4) workers’ compensation insurance. Each year, some of the insurance rates are increased or adjusted. Following rates are applicable for 2023. Item Employee Employer TOTAL RATE Expected […]
Can foreigners hire Korean employees remotely? Yes, any foreigners or foreign companies can hire Korean national employees from overseas. Many foreigners or foreign companies I’ve met are worried about the Korean labor environment and hesitate to set up a company in Korea. For certain cases, Koreans can be directly employed by any foreigners and work […]
South Korea has four major social security schemes: 1) national pension; 2) national health insurance & long-term care insurance; 3) employment insurance; and 4) workers’ compensation insurance. The insurance rates are increased or adjusted annually, with those shown below the latest updates from 2022. Item Employee Employer TOTAL RATE Expected Monthly Contribution (TTL) Note Case […]
There’re 4 major social securities in Korea: 1) national pension, 2) national health insurance and long-term care insurance, 3) employment insurance and 4) workers’ compensation insurance. Each year, some of the insurance rates are increased or adjusted. Especially, rates for national health insurance and long-term care insurance are increased every year. During covid-19 season in […]
Each year, the Korean Social Insurance Companies announce their insurance rates for the upcoming year. It’s been announced that Korea’s social insurance rates for 2020 will be as below. At this moment only the Workers’ Compensation Insurance rate for 2020 has not been confirmed by the government. Item 2019 2020 Note Employee Employer TOTAL RATE […]
A Guide to South Korea’s 4 Social Insurance Programs South Korea’s Social Welfare Policy & the “Safety Net” Every developed country has systems set up to make sure that people are taken care of in the event of certain challenges and time periods. European countries are famous for their strong social safety net, but Korea […]
If you had thoughts of hiring people in Korea, consider below two major contract types : Employment contract vs. Independent service contract Employment contract (고용관계) Company needs to enroll for the social securities for each employee Employer portion of social taxes: approx. 8.75% Employee portion of social taxes: approx.. 8.5% Company needs to provide paid […]