South Korea Social Contributions Guide

South Korea mandatory social contributions for 2026. The guide covers: the National Pension at 9% — split 50/50 between employee and employer; the Health Insurance at ~7.09% — split 50/50; the Long-term Care Insurance at ~12.27% of the health premium — split 50/50; the Employment Insurance at 0.9% from the employee and 0.9% from the employer (with additional 0.75% for employers with fewer than 150 workers); and the Workers' Compensation at 100% employer — the rate varies by industry.

National Pension — 국민연금

Contribution rate — 9%: The National Pension (NPS) contribution rate for 2026 is 9% of the standard monthly income (기준소득월액). The contribution applies to the monthly salary between the minimum and the maximum thresholds — the lower ceiling at approximately KRW 370,000 and the upper ceiling at approximately KRW 5,900,000 per month for 2026.
Employee share — 50% (4.5% of salary): The employee pays 4.5% of the standard monthly income. The employer deducts this from the salary and remits it together with the employer share.
Employer share — 50% (4.5% of salary): The employer matches the employee contribution at 4.5% of the standard monthly income.
Total — 9%: The combined contribution is 9% of the standard monthly income within the ceiling range.

For example: an employee earning KRW 4,000,000/month pays KRW 180,000/month (KRW 4,000,000 × 4.5%) for the National Pension. The employer contributes another KRW 180,000. The total monthly contribution is KRW 360,000.

Health Insurance — 건강보험

Premium rate — ~7.09%: The Health Insurance premium rate for 2026 is approximately 7.09% of the standard monthly income (건강보험 보험료율). The rate is set annually by the Ministry of Health and Welfare. The contribution ceiling is approximately KRW 7,870,000 per month for 2026.
Employee share — 50% (~3.545% of salary): The employee pays 50% of the total premium — approximately 3.545% of the standard monthly income.
Employer share — 50% (~3.545% of salary): The employer pays the other 50% of the total premium.

For example: an employee earning KRW 4,000,000/month pays approximately KRW 141,800/month (KRW 4,000,000 × 3.545%) for Health Insurance. The employer contributes another KRW 141,800. The total monthly contribution is approximately KRW 283,600.

Long-term Care Insurance — 장기요양보험

Premium rate — ~12.27% of the Health Insurance premium: The Long-term Care Insurance (LTCI) premium is calculated as a percentage of the Health Insurance premium, not as a percentage of the salary. The rate for 2026 is approximately 12.27% of the Health Insurance premium.
Employee share — 50%: The employee pays 50% of the LTCI premium.
Employer share — 50%: The employer pays the other 50%.

For example: using the Health Insurance premium of KRW 283,600 (total for the employee and the employer), the LTCI premium is KRW 283,600 × 12.27% = approximately KRW 34,800. The employee pays KRW 17,400 and the employer pays KRW 17,400.

Employment Insurance — 고용보험

Employee rate — 0.9%: The employee pays 0.9% of the gross salary for the Employment Insurance (고용보험).
Employer rate — 0.9% to 1.65%: The employer pays 0.9% of the gross salary for the standard rate. For employers with fewer than 150 employees, an additional 0.75% is added (for the employment stabilization and job skill development programs) — making the total employer rate up to 1.65%.
Ceiling: The Employment Insurance contribution ceiling is approximately KRW 5,300,000 per month for 2026 for the employee share.

For example: an employee earning KRW 4,000,000/month pays KRW 36,000/month (KRW 4,000,000 × 0.9%) for Employment Insurance. The employer pays at least KRW 36,000/month (0.9%).

Workers' Compensation — 산재보험

Rate — varies by industry (0.7% to ~18.5%): The Workers' Compensation Insurance (산업재해보상보험 / 산재보험) rate depends on the industry classification. The rates for 2026 range from approximately 0.7% (for office-based industries) to 18.5% (for high-risk industries such as mining and construction).
Employer — 100%: The Workers' Compensation Insurance is paid entirely by the employer. There is NO employee share.

For example: an employer in the office-based industry with a total payroll of KRW 100,000,000/month pays approximately KRW 700,000/month for the Workers' Compensation Insurance.

FAQs

Are the social contributions tax-deductible?

The employee contributions to the National Pension and the Health Insurance are tax-deductible under the special expense deduction (특별소득공제). The Employment Insurance contribution is also deductible. The employer contributions are a tax-deductible business expense for the employer.

Do foreign workers pay Korean social contributions?

Yes. Foreign workers employed in South Korea are generally subject to the same social contribution rules as Korean employees. However, they may be exempt from the National Pension under a bilateral social security agreement if their home country has an agreement with Korea. Foreign workers working in Korea for less than 60 months may also withdraw a lump-sum refund of their National Pension contributions upon leaving Korea.

What is the contribution ceiling for 2026?

The contribution ceilings for 2026 are: National Pension upper ceiling at approximately KRW 5,900,000/month, Health Insurance upper ceiling at approximately KRW 7,870,000/month, and Employment Insurance upper ceiling at approximately KRW 5,300,000/month. The actual ceilings are adjusted annually by the Ministry of Health and Welfare and the Ministry of Employment and Labor.