Sam accepted a job in Pangyo at ₩40 million a year. Divided by twelve, that's ₩3.33 million, so Sam budgeted around ₩3.3 million a month for rent, food and a trip home at Christmas.
Then the first payslip arrived: ₩2.94 million. Nearly ₩400,000 had vanished, and the payslip was entirely in Korean.
Nothing went wrong. In 2026 roughly 12 to 15% of a typical Korean salary goes to four social insurances and income tax before you see it. Once you know the six lines, you can check your own payslip (급여명세서) in two minutes.
The six deductions on every payslip
| Line on your payslip | Korean | 2026 rate (your share) |
|---|---|---|
| National Pension | 국민연금 | 4.75% |
| Health insurance | 건강보험 | 3.595% |
| Long-term care insurance | 장기요양보험 | 13.14% of health insurance |
| Employment insurance | 고용보험 | 0.9% |
| Income tax | 소득세 | from the withholding table |
| Local income tax | 지방소득세 | 10% of income tax |
Your employer pays a matching amount for the pension and health insurance on top of your salary, so the true cost of hiring you is higher than your contract figure.
A worked example: ₩40 million a year
Gross monthly pay: ₩40,000,000 ÷ 12 = ₩3,333,333
Meal allowance (tax-free): ₩200,000, so insurance and tax are counted on ₩3,133,333
National Pension 4.75% = ₩148,830 · Health 3.595% = ₩112,640 · Long-term care = ₩14,800 · Employment 0.9% = ₩28,200
Income tax ≈ ₩76,400 · Local tax ≈ ₩7,640
Take-home ≈ ₩2,944,820 a month
Quick reference for 2026
| Annual salary | Take-home per month |
|---|---|
| ₩30 million | about ₩2.25 million |
| ₩40 million | about ₩2.94 million |
| ₩50 million | about ₩3.57 million |
| ₩60 million | about ₩4.20 million |
Single person, ₩200,000 tax-free meal allowance. Each salary has its own breakdown page, for example ₩30 million or ₩50 million.
Why your first payslip might be even lower
Your first month is short because you started mid-month, or health insurance for two months appears at once.
Pay is pro-rated by days worked, and health insurance sometimes catches up a month late. Month two or three shows your normal figure.
A few other things move the number: overtime and bonuses raise the tax for that month, and if your contract quotes salary “including severance” (퇴직금 포함), that’s a red flag. Severance must be paid separately, as our severance guide explains.
Ask HR whether your contract figure includes the meal allowance (식대). A ₩200,000 tax-free allowance inside your salary is good: it lowers both your tax and your insurance.
Can I pay less tax as a foreigner?
Possibly. Foreign workers can choose a 19% flat income tax instead of the normal rates, but at most salaries it costs more, not less. We ran the numbers in the 19% flat tax explained.
To check your own figure, put your salary, allowance and family size into the salary calculator.
Sources: National Pension Service and NHIS 2026 contribution rates; Income Tax Act Enforcement Decree, Table 2 (withholding table).
Try it with your own numbersKorea Salary Take-Home CalculatorEnter your annual salary to see what lands in your bank account each month, with every deduction explained.Written from the laws and official notices in force on the date above. Rules change and every case is different, so check with the office named in the article before an important decision. Spotted something out of date? Tell us.