26/08/2026
🇰🇷 THIS IS HOW MUCH A COMPANY ACTUALLY PAYS FOR ONE EMPLOYEE IN KOREA
Let’s use a monthly gross salary of ₩2,500,000 as an example.
👤 EMPLOYEE’S SALARY
Gross salary: ₩2,500,000
Approximate employee deductions:
🔹 국민연금 (National Pension): ₩118,750
🔹 건강보험 (Health Insurance): ₩89,870
🔹 장기요양보험 (Long-Term Care): ₩11,810
🔹 고용보험 (Employment Insurance): ₩22,500
🔹 소득세 + 지방소득세: approximately ₩40,000–₩50,000
💵 Estimated take-home salary: approximately ₩2,207,000–₩2,217,000
But the company also pays its own share of the employee’s insurance.
🏢 COMPANY’S ACTUAL MONTHLY EXPENSE
🔹 Gross salary: ₩2,500,000
🔹 Employer’s 국민연금: ₩118,750
🔹 Employer’s 건강보험: ₩89,870
🔹 Employer’s 장기요양보험: ₩11,810
🔹 Employer’s 고용보험 contribution: approximately ₩28,750
🔹 산재보험 (Industrial Accident Insurance): approximately ₩17,500–₩50,000, depending on the industry
💰 Company’s monthly cash expense: approximately ₩2,767,000–₩2,799,000
If we also include the company’s future 퇴직금 obligation:
🔹 Monthly severance reserve: approximately ₩208,333
✅ REAL TOTAL EMPLOYMENT COST: approximately ₩2,975,000–₩3,007,000 per month
This means that even if an employee’s gross salary is ₩2,500,000, the company may actually spend approximately ₩3 million every month for that one employee.
The employee does not receive the entire ₩2.5 million because their portion of the insurance and taxes is deducted. At the same time, the company pays separate employer contributions on top of the employee’s gross salary.
These are estimated 2026 figures. Actual insurance premiums, income tax and employer expenses may differ depending on dependents, tax-free allowances, workplace size and type of industry.
