Korean salary explained (2025) - Gross vs. net, taxes, and our free salary calculator

Korea’s payslip is famously opaque to newcomers: on top of headline salary you must deduct 4.5% National Pension, 3.545% Health Insurance (plus 12.95% long‑term‑care), 0.9% Employment Insurance, progressive income tax up to 45%, a 10% local surtax, and account for whether the legally‑mandated severance is “included” or “separate.”

This guide unpacks each item and shows how Dev Korea’s Salary Calculator turns a wall of deductions into a single, accurate take‑home figure.

Why a currency converter falls short

Seeing “₩60M a year” in an offer letter can be misleading.

That figure is gross and may or may not fold in the legally required one‑month‑per‑year severance bonus. If severance is “포함 (included)” instead of “별도 (separate),” your monthly cash can drop by the equivalent of one full paycheck a year—about 8 % of the headline salary. Layer on four social‑insurance deductions and a progressive income‑tax system, and the gap between sticker price and take‑home easily tops 20%.

In short, a currency converter translates only the symbol, not the reality. You need a calculator that applies Korea’s actual withholding rules to see what will really hit your bank account.

Mandatory social‑insurance deductions (2025)

Scheme	Rate
National Pension	4.5%
National Health Insurance	3.545%
Long‑Term‑Care add‑on	12.95% of the NHI amount
Employment Insurance	0.9%

Foreign‑talent tip: Eligible engineers can elect a flat 19% tax (plus local surtax) for up to 20 years instead of the progressive PIT table. 👉 More about this

Income tax & local surtax

PIT (personal income tax) in Korea is withheld monthly, not just at year‑end.

Employers simply look up your gross salary, number of dependents, and children under 20 in the National Tax Service’s simplified withholding table (간이세액표).

👉 View the official NTS table

Who counts as a dependent?

• Individuals whose annual income does not exceed ₩1 M. Anyone earning more than that is not eligible.
• Children under 20 are only counted if their annual income is ≤ ₩1 M.

Once the PIT is determined from the table, a local income tax equal to 10% of that PIT is added automatically.

Example: if the table shows ₩200 k PIT, the local tax is ₩20 k → total withholding ₩220 k.

Non‑taxable allowances

Certain allowances skip payroll tax entirely—and our calculator lets you enter the exact figure you receive (it defaults to ₩200 k if you’re unsure).

Category	Typical limits / notes
Meal allowance	Up to ₩200 k per month when no company canteen is provided
Child‑care benefits	Direct nursery or kindergarten support paid by the employer
Expense reimbursements	Pre‑approved travel, telecom, and remote‑work stipends
Overseas work income	Portions earned while on foreign assignment may qualify
Night‑shift pay	Extra pay for production/manufacturing night work, within NTS limits
Foreign‑worker exemptions	50% tax break on earned income for qualifying engineers and 30% for certain expatriate managers (first five years in Korea)

If you receive any of the above, only the taxable remainder of your salary is used to calculate social‑insurance and income‑tax deductions.

Severance (퇴직금)

By law, employers must reserve 30 days of average wages for each full year of service; you receive it when you leave.
Always confirm whether an offer lists severance “별도 (separate)” or “포함 (included).”

Quick 2025 payslip example

Scenario: ₩60 M gross (severance separate) · 1 dependent (you) · no children · standard ₩200 k non‑taxable allowance.

Item	Monthly deduction
National pension	₩216,000
Health insurance	₩170,160
Long‑term care	₩22,030
Employment insurance	₩43,200
Income tax	₩307,420
Local income tax	₩30,740
Net take‑home	≈ ₩4,210,450

(Calculated with Dev Korea’s Salary Calculator on 21 Apr 2025.)

How to use Dev Korea’s Salary Calculator

1. Choose salary basis – annual vs monthly.
2. Toggle severance – see real monthly cash.
3. Enter salary, dependents, children, non‑taxable.
4. Decide on Employment Insurance (some foreigners can opt out).
5. Calculate – instant net, bar‑chart of take‑home %.
6. Copy breakdown – one click for sharing.

The tool auto‑updates whenever official tables change, so your numbers stay current.

Try it now

Ready to see your own numbers?
➡️ Open Dev Korea’s Salary Calculator and test different scenarios before you sign an offer or negotiate a raise.

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Important notes

• This salary calculator was created using the most universal criteria, but actual results can vary with your specific pay structure—use it for reference only.
• The calculator provides simulation results and has no legal effect.
• For official figures, consult the National Tax Service Simplified Tax Table (국세청 간이세액표).
• Need help in English? Call the NTS Foreign Taxpayer Service Center at 1588‑0560.

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