How is it calculated?
Your annual salary is divided by 12, the tax-free allowance is subtracted, and the employee share of each item is applied to the rest:
- National Pension: 4.75% (monthly income counted between 410,000 and 6,590,000 won)
- National Health Insurance: 3.595%
- Long-term care insurance: 13.14% of the health insurance premium
- Employment insurance: 0.9%
- Income tax: calculated for the whole year with the earned income deduction, basic deductions, insurance deductions and tax credits, then divided by 12
- Local income tax: 10% of income tax
Employers withhold income tax each month using the National Tax Service's simplified withholding table, so the tax on your actual payslip can differ slightly. The difference is settled in the year-end tax settlement.
Notes for foreign workers
Depending on your nationality and visa, you may be exempt from National Pension (for example under a social security agreement) or from employment insurance. If so, your take-home pay will be higher than shown here. Check with your employer or the National Pension Service.
Frequently asked questions
Q. My contract says the salary includes severance pay. What do I enter?
Enter the amount without the severance share. When severance is included, it is often about one twelfth of the total, but check your contract.
Q. Will I pay less tax if I have children?
Child tax credits, card spending deductions and similar items can lower your tax after the year-end settlement. This calculator estimates monthly withholding only, so it does not include them.
Q. When do the rates change?
The National Pension rate rises every year and the health insurance rate is usually set each year. This calculator is updated when they change.