Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
KRW ₩ (South Korean Won)
Employer contributions
~10.7% (NPS 4.5% + NHIS 3.545% + Employment 0.9% + Accident Insurance ~0.73%)
Minimum wage
KRW 10,030/hour (2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Seoul
Timezone
KST (GMT+9)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~KRW 5,535,000 total
/month
For a gross salary of
KRW 5,000,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~10.7% (NPS 4.5% + NHIS 3.545% + Employment 0.9% + Accident Insurance ~0.73%)
Mandatory extras
Annual Performance Bonus
Monthly admin
Monthly payroll - 4 insurance by 10th - year-end settlement () January/February
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~KRW 5,535,000 total
Example gross salary
KRW 5,000,000 gross/month
~KRW 3,619,000 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~KRW 535,000 employer SS
Employer contributions on that salary
Employer contributions
~10.7% (NPS 4.5% + NHIS 3.545% + Employment 0.9% + Accident Insurance ~0.73%)
Employee contributions
~9.62% employee SS + income tax
Total cost above gross
~10.7% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~KRW 4,000,000
Per month
Seoul
KRW 4,500,000 - 10,000,000
~35%
Busan
KRW 3,500,000 - 7,000,000
~15%
Monthly gross. National average salary per year:
~KRW 48,000,000
Minimum wage
KRW 10,030/hour (2026)
Paid:
Hourly
Extra pay
Annual Performance Bonus
Discretionary; 200-400% annual salary bonus common in large companies
December or split
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
6% up to KRW 14M / 15% / 24% / 35% / 38% / 40% / 42% / 45%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 10th
Social security payments
May 31 (comprehensive income tax return)
Income tax
By March 10
Employee tax certificate
Geunyeo Sogeukhwalgyeong Johap Pyein
May 31
Annual return
Jonghap Sogeusse Sinigo
Late payment penalties
Late 4 insurance: 3% penalty; late income tax withholding: 3% penalty
Who collects what
NTS (National Tax Service)
Income tax
NPS / NHIS / Employment Insurance
Social insurance (4 major insurances)
Ministry of Employment and Labour (MOEL)
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Yeoncha (Annual Leave)
15 days (year 1) increasing to 25 days (15+ years)
Public holidays
~15 public holidays
Sick leave
Byeong-ga
Employer pays; no specific statutory sick pay amount
Maternity leave
18 weeks (including paternity 10 days)
100% employer first 3 months (capped); Employment Insurance after
The contracts you can use, and what ending an employment relationship costs.
Permanent
Giganui Jeongham Eomneun Geunro Gyeyak (Permanent)
Fixed term
Giganui Jeonghaejin Geunro Gyeyak (Fixed Term)
Independent contractor
Doegeub Gyeyak / Freelancer
Collective agreements
Dan-che Hyeobyak (Collective Agreement)
Ending employment
Toejik-geum (Severance Pay)
How it is calculated
1 month average wage per year of service (mandatory - every employee after 1 year)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Toejik-geum (Severance) Non-Accrual
Risk Level: HIGH
Korean law mandates 1 month average wage per year for every employee who works more than 1 year, including fixed-term and part-time workers (proportional). No separate fund is required but employers must be able to pay on termination. MOEL audits can order immediate payment plus interest.
Fixed-Term Contract 2-Year Limit Violation
Risk Level: HIGH
Korean Fixed-Term and Part-Time Employees Protection Act limits fixed-term employment to 2 years. After 2 years, the employee becomes permanent by operation of law. Employers who issue renewal contracts beyond this limit face MOEL orders for permanent conversion plus back-pay of permanent employee benefits.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.