Social Security Scheme
         

Social security charges applicable in Korea are as follows. These are obligatory ones by the law.


National Health Insurance: 6.24% of monthly salary --> 3.12% borne by employee and 3.12% borne by the company


National Pension: 9% of monthly salary --> 4.5% borne by employee and 4.5% borne by the company. From July 2018, maximum salary is increased to KRW 4,680,000 in calculation of NP and maximum NP is now KRW 210,600 for both employee and employer (maximum salary KRW 4,680,000 * 4.5% each).


Workers’ Compensation Insurance (Local name: Industrial Accident Compensation Insurance): 0.7% ~ 36% (average 1.8%) of monthly salary --> 0.96% for sales office for example


[Premium rating for 61 business types as of 2009 ranges from 7/1000 to 360/1000 with 18/1000 on average, extracted from authority’s web-page.]


Employment Insurance: 1.55% of monthly salary --> 0.65% borne by employee and 0.9% borne by the company


Long-term Recuperation Insurance: 7.38% of National Health Insurance



            


Procedure for National Pension:

Report about new comer -> Billing arrived from Government agency -> Monthly withheld -> Pay within 10 days of month-end -> Submit salary information for last year every February -> Every April, pension contribution is decided based on that salary report for the year which that April belongs to

 
Procedure for National Health Insurance:

Report about new comer -> Billing arrived from Government agency -> Monthly withheld -> Pay within 10 days of month-end -> Submit salary information for last year every February -> Every April, last year’s insurance premium is settled based on that salary report and also insurance premium for the year which that April belongs to is decided on that salary report

 
Procedure for Employment Insurance / Industrial Accident Insurance:

Submit salary forecast and pay insurance premium forecasted for calendar year (quarterly payment is allowed for an alternative) -> Report about new comer -> Settle last year’s insurance premium and submit salary forecast and pay forecasted insurance premium every March

 
For more information
National Health Insurance
National Pension
Employment Insurance
Industrial Accident Insurance
http://www.nhic.or.kr/
http://www.nps.or.kr/
http://www.kcomwel.or.kr/eng/
http://www.kcomwel.or.kr/eng/
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