The short version
- 2026 minimum wage: KRW 10,320 an hour, KRW 2,156,880 a month full-time.
- Employer social insurance adds roughly 10–11% on top of salary.
- Withholding and insurance are paid monthly, by the 10th.
- After one year of service, severance of about one month’s pay per year accrues.
Korean employment law is protective and precise. A written contract is required, minimum wage is set nationally each year, and four social insurances apply from the first day. None of this is exotic; all of it is enforced.
KRW 10,320hourly minimum wage, 2026
~10–11%employer social insurance on top
10thmonthly payroll deadline
The four social insurances
| Insurance | Total rate 2026 | Employer share |
|---|---|---|
| National pension | 9.5% | 4.75% |
| Health insurance | 7.19% | 3.595% |
| Long-term care | of wages, with health | 0.4724% |
| Employment insurance | varies | 1.15–1.75% |
| Industrial accident | by industry | from 0.6% |
Source: Crowe Korea, 2026 rates. Pension contributions are capped above an income ceiling.
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The first hire turns a Korean company from an address into a business.
The paperwork
- Written employment contract stating wage, hours, holidays and place of work.
- Insurance registration within the month after hiring.
- Monthly withholding of income tax and filing by the 10th.
- Year-end settlement of employees’ income tax in February–March.
- Severance accrues after one year of continuous service.
Questions readers ask
What is the minimum wage in Korea in 2026?
KRW 10,320 an hour, or KRW 2,156,880 a month for a standard full-time schedule.
How much does an employee cost on top of salary?
Employer social insurance contributions add roughly 10–11%.
When is payroll tax due?
By the 10th of the following month.
Is severance pay mandatory?
Yes, for employees with at least one year of continuous service.