Korea's 4 Major Social Insurances Explained
All employees in Korea contribute to four major social insurance programs each month. These deductions are automatically withheld from your paycheck by your employer. Understanding exactly how much is deducted helps you plan your monthly budget accurately.
2025 Employee Contribution Rates
National Pension (National Pension): 4.5% of standard monthly income, capped at KRW 6,170,000. Health Insurance (Health Insurance): 3.545% of gross salary. Long-Term Care Insurance (Long-Term Care Insurance): 12.81% of the health insurance premium. Employment Insurance (Employment Insurance): 0.9% of gross salary. Employers match or exceed these contributions separately.
Non-Taxable Allowances
Certain allowances such as meal subsidies up to KRW 200,000/month, car maintenance allowances up to KRW 200,000/month, and childcare subsidies may be exempt from insurance calculations. Enter these in the non-taxable field for a more accurate result.
What Is Not Included
This calculator shows insurance deductions only. Income tax (income tax) and local income tax (local income tax) are additional deductions that depend on your tax bracket, dependents, and other factors. For your full net pay, consult the national tax withholding table or your payroll department.
Frequently Asked Questions
Do the rates change every year?
Health insurance premiums are adjusted annually, and the national pension income cap changes each July. This calculator uses 2025 rates. For the latest rates, check the National Health Insurance Service (NHIS) and National Pension Service (NPS) websites.
What does the employer pay on top of this?
Employers pay matching contributions: national pension 4.5%, health insurance 3.545%, employment insurance 1.15% (varies by company size), and industrial accident insurance (rate varies by industry). These do not affect your take-home pay directly.