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







National Health Insurance: 5.08% of monthly gross salary --> 2.54% borne by employee and 2.54% borne by the company
National Pension: 9% of monthly gross salary --> 4.5% borne by employee 4.5% borne by the company. Maximum amount is KW 324,000 in total 
Industrial Accident Compensation Insurance: 0.5% ~ 61.1(average 1.49%) of gross salary --> 0.74% for sales office and 0.72 % for less than 5 employees
Employment Insurance: 1.15% of gross salary --> 0.45% borne by employee and 0.7% borne by the company
 
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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