What comes off a Korean payslip
| Deduction | Korean | Your share (2026) | Notes for foreigners |
|---|---|---|---|
| National Pension | 국민연금 | 4.75% of pay (₩410k–₩6.59M counts) | Exempt for some nationalities; many can claim it back when leaving — refund calculator |
| Health insurance | 건강보험 | 3.595% | Mandatory for employees of any visa |
| Long-term care | 장기요양 | 13.14% of the health premium (≈0.47% of pay) | E-8/E-9/H-2 can apply to opt out at NHIS |
| Employment insurance | 고용보험 | 0.9% | Mandatory for F-2/F-5/F-6; optional or employer-only for many others |
| Income tax | 근로소득세 | NTS table, by pay and dependants | Or flat 19% if you elect it |
| Local income tax | 지방소득세 | 10% of income tax |
Standard tax or 19% flat tax?
The flat rate (Restriction of Special Taxation Act art. 18-2) multiplies your whole pay — including the meal allowance — by 19%, then adds 10% local tax. In exchange you lose every deduction and credit. The table shows the yearly tax both ways, single person, ₩200k tax-free meal allowance, basic deductions only:
| Annual salary | Take-home / month | Tax, standard | Tax, flat 19% | Cheaper |
|---|---|---|---|---|
| ₩30,000,000 | ₩2,244,440 | ₩376,675 | ₩6,270,000 | Standard |
| ₩40,000,000 | ₩2,935,813 | ₩1,397,337 | ₩8,359,998 | Standard |
| ₩50,000,000 | ₩3,571,586 | ₩2,729,955 | ₩10,449,997 | Standard |
| ₩60,000,000 | ₩4,195,410 | ₩4,137,018 | ₩12,540,000 | Standard |
| ₩80,000,000 | ₩5,367,086 | ₩7,615,527 | ₩16,719,997 | Standard |
| ₩100,000,000 | ₩6,530,923 | ₩12,350,559 | ₩20,899,998 | Standard |
| ₩150,000,000 | ₩9,022,580 | ₩28,730,396 | ₩31,350,000 | Standard |
| ₩200,000,000 | ₩11,330,436 | ₩47,161,464 | ₩41,799,997 | Flat 19% |
To use it, give your employer the 외국인근로자 단일세율적용신청서 (flat-rate application) with your year-end settlement documents; your employer can also withhold 19% monthly. It applies to employees who started working in Korea by 31 Dec 2026, for tax years ending within 20 years of their first day of work.
FAQ
How much tax do foreigners pay on salary in Korea?
The same as Koreans by default: monthly withholding from the National Tax Service table (6–45% progressive rates) plus 10% local tax, settled in the February year-end settlement. Foreign employees who started working in Korea by 31 December 2026 may instead elect a flat 19% (20.9% with local tax) on their gross pay for up to 20 years.
Is the 19% flat tax better for me?
Usually only on high salaries. The flat rate is applied to gross pay with no deductions, tax-free allowances or credits. With basic deductions only, it starts to win at around ₩168,000,000 a year for a single person; with more deductions the break-even is higher.
Is the flat rate going up?
The government's 2026 tax reform proposal (3 Aug 2026) raises it to 21% (23.1% with local tax) from 2027 and extends the start-work deadline to 31 December 2029. It still needs National Assembly approval, so treat it as a proposal.
What is 실수령액?
Take-home pay: salary after the four social insurances (pension, health, long-term care, employment) and income tax are deducted. It is the number you will see on your bank statement.
Why is my payslip different?
Employers can withhold at 80%, 100% or 120% of the table, health insurance is re-settled every April, and overtime or bonuses change the monthly figure. Use this as a planning estimate.
Sources
- Income Tax Act Enforcement Decree, Appendix 2 — simplified withholding table (2026.3.1~) — www.law.go.kr
- National Tax Service — My withholding income tax calculator (English) — www.nts.go.kr
- NPS — 2026 insured income floor/cap ₩410,000–₩6,590,000 (Jul 2026–Jun 2027) — www.nps.or.kr
- Ministry of Health and Welfare — pension contribution 9.5% from 2026 (13% by 2033) — www.mohw.go.kr
- NHIS — 2026 health insurance rate 7.19% (employee 3.595%) — edi.nhis.or.kr
- Ministry of Health and Welfare — 2026 long-term care rate 0.9448% (13.14% of health premium) — www.mohw.go.kr
- Employment Insurance Premium Collection Act Decree art. 12 — 1.8%, employee half 0.9% — www.law.go.kr
- Income Tax Act art. 12 — meal allowance tax-free up to ₩200,000 a month — www.law.go.kr
- Income Tax Act art. 59 — earned income tax credit and caps — www.law.go.kr
- National Tax Service — child tax credit ₩250,000 / ₩550,000 / +₩400,000 — www.nts.go.kr
- Restriction of Special Taxation Act art. 18-2 — 19% flat rate for foreign employees (start by 31 Dec 2026, 20 years) — www.law.go.kr
- RSTA Enforcement Decree art. 16-2(4) — apply with the year-end settlement — law.go.kr
- Easy Law (Ministry of Government Legislation) — Tax benefits for foreign nationals — www.easylaw.go.kr
- Ministry of Economy and Finance — 2026 tax reform proposal (flat rate 19%→21% from 2027, deadline to 2029; not yet passed) — mofe.go.kr
All figures checked 30 Oct 2026 against the official pages above. Rules change — the official office has the final say.
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