Cost to Hire an Employee in South Korea (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 19.1% at a ₩60,000,000 salary: ₩11,430,440 a year, of which the largest is severance pay (accrual).
• An EOR fee, if you hire without your own entity. The providers in our South Korea guide publish starting prices of US$199–699 per employee per month.

Mandatory employer costs at a ₩60,000,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• National pension (employer): 4.75% in 2026, on pay up to ₩6,590,000 a month
• Health and long-term care (employer): 3.595% + 0.4724% of pay
• Severance pay: 30 days' average wages per year of service (after 1 year)
• Minimum wage: ₩10,320 an hour (₩2,156,880 a month) in 2026
• Working week: 40 hours, plus up to 12 hours' overtime
• Paid annual leave: 15 days after a year, rising to 25

• The pension ceiling of ₩6,590,000 a month applies from July 2026 to June 2027, so above about ₩79 million a year the pension cost stops rising.
• The employment stability rate rises with the employer's total Korean workforce, from 0.25% (under 150 workers) to 0.85% (1,000 or more). Industrial accident rates are set by industry each year; the defaults here are for professional services.
• Severance becomes payable once an employee has a year of service. Many employers fund it through a defined benefit or defined contribution retirement pension plan.
• Employee contributions (pension 4.75%, health 3.595%, long-term care 0.4724%, unemployment 0.9%) and income tax are deducted from pay and are not employer costs.

Without your own entity in South Korea, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Korean company or branch. See the comparison in our South Korea guide and EOR vs local entity.