Article
4 min read
Employer Costs for an Employee in South Korea (2026 Guide)
Employer of record
Global hiring
Author
Jemima Owen-Jones
Last Update
February 05, 2026
Quick answer: What is the total employer cost for a $100,000 salary in South Korea?
For an employee earning $100,000 USD annually in South Korea, employers can expect mandatory employer costs of approximately $9,174 USD per year, bringing total compensation costs to $109,174 USD.
Estimated total employer cost (South Korea): ~9.2% on top of gross salary (example estimate).
Hiring in South Korea can be a strong move for global teams—especially if you’re building in high-growth areas like engineering, IT, product, and design.
But even when two employees earn the same salary, the total employer cost varies by country due to statutory insurance programs, payroll contributions, and mandatory local taxes.
This guide provides a ballpark estimate of the mandatory employer cost of hiring an employee in South Korea, using an example salary of $100,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in South Korea, such as:
- Workers’ Compensation Insurance (산재보험)
- Resident tax (local income tax assessed by local government)
- Employment insurance
- Disable hiring fee (disability employment levy)
- National health insurance (건강보험)
- Long-term care insurance (장기요양보험)
- National pension (국민연금)
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid annual leave (vacation)
- Sick pay
- Private health insurance upgrades
- Employer-provided benefits or allowances
- Bonuses, equity, or commissions
- Equipment and onboarding expenses
- Costs that vary by industry, job type, or city
Why employer costs vary in South Korea (and globally)
Employer costs can differ depending on:
- Salary thresholds and contribution caps
- Whether additional payroll levies apply
- Industry-specific contribution rates
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for South Korea
Below is an estimated breakdown of mandatory employer costs for hiring an employee in South Korea earning $100,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $100,000 USD
- Annual gross salary (approx.): ₩146,954,000 KRW
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (KRW) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Workers’ Compensation Insurance (산재보험) | ₩1,116,850 | $760 | Work injury/illness insurance |
| Resident Tax | ₩734,770 | $500 | Local income tax assessed by local government |
| Employment Insurance | ₩1,689,971 | $1,150 | Unemployment benefit and employment support fund |
| Disable Hiring Fee | ₩747,936 | $509 | Disability employment levy |
| National Health Insurance (건강보험) | ₩5,202,172 | $3,540 | Statutory national health insurance |
| Long-term Care Insurance (장기요양보험) | ₩658,354 | $448 | Long-term care insurance premium |
| National Pension (국민연금) | ₩3,331,800 | $2,267 | Employer pension contribution |
| Total Estimated Employer Costs | ₩13,481,853 | $9,174 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | KRW | USD |
|---|---|---|
| Gross Salary | ₩146,954,000 | $100,000 |
| Mandatory Employer Costs | ₩13,481,853 | $9,174 |
| Total Compensation Cost | ₩160,435,853 | $109,174 |
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FAQs
What social insurance do employers pay in South Korea?
Employer costs in South Korea include mandatory social insurance contributions such as national health insurance, national pension, employment insurance, and workers’ compensation insurance. These required contributions are a major reason why total employer cost is higher than base salary.
What should companies know about employment in South Korea?
Employment in South Korea comes with structured payroll requirements, mandatory social insurance contributions, and legal protections for employees. South Korea offers a highly skilled talent pool, but employers should plan for statutory costs and compliance obligations when budgeting for hiring.
What is the minimum wage in South Korea?
South Korea has a statutory minimum wage that employers must meet as a legal baseline. As of 2025, the national minimum wage is ₩10,030 per hour. This minimum wage applies across industries and directly affects hiring budgets for hourly and entry-level roles.
Employers must reflect the minimum wage accurately in employment contracts and payroll calculations to remain compliant with Korean labor law.
How does Korean labor law affect employer costs?
Korean labor law sets rules for working conditions, payroll compliance, leave entitlements, and termination procedures. These requirements can impact total cost through mandatory contributions, required protections, and compliance processes.
What should employment contracts include in South Korea?
Compliant employment contracts in South Korea typically define salary, job duties, working hours, benefits, probation terms, and termination rules. Strong contracts reduce risk and support compliant global employment practices.
What notice periods apply in South Korea?
Notice periods in South Korea can depend on contract terms and employee circumstances. Employers should clearly document notice requirements in employment contracts to avoid disputes and ensure compliance.
Do employer obligations increase with years of service in South Korea?
Yes. In many cases, employee entitlements and employer obligations can change with years of service, especially for long-term employees. This can affect termination-related costs and overall workforce planning.
Do employees get 30 days of paid leave in South Korea?
Not always. While some employees may receive extended leave benefits depending on employer policy or tenure, 30 days of paid leave is not a universal baseline across all roles. Employers should confirm statutory leave entitlements and reflect any additional leave policies in the employment contract.
How do average wages affect employer cost planning in South Korea?
Average wages can influence salary benchmarking, hiring competitiveness, and budgeting for total compensation. Since social insurance contributions are tied to earnings, higher wages typically lead to higher employer contribution amounts.
Why is South Korea a strong option for global employment?
South Korea offers a highly educated workforce and strong talent in areas like engineering, IT, and product development. For global employment, it can be a strategic hiring market—but employers should budget for statutory social insurance and ensure contracts follow Korean labor law.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
