WTF Is on My Korean Payslip? The Foreigner's Complete Guide to Every Deduction, Tax, and Hidden Fee (2026)
WTF Is on My Korean Payslip? The Foreigner's Complete Guide to Every Deduction, Tax, and Hidden Fee (2026)
"My first Korean payslip showed ₩3,000,000 gross — but only ₩2,540,000 landed in my account. I had no idea where ₩460,000 went. Nobody explained it to me."
Every month, thousands of foreign workers in Korea get their payslip (급여명세서, geup-yeo-myeong-se-seo), look at the bottom number, and feel confused — or worse, suspicious. The gross salary on your contract and the amount that actually hits your bank account can differ by 10–20%, sometimes more.
This guide explains every single line on a Korean payslip using real 2026 rates — so you always know exactly where your money goes, and more importantly, when something is wrong.
- National Pension (국민연금): 4.75% of salary (employee share)
- Health Insurance (건강보험): 3.595% of salary
- Long-term Care (장기요양보험): 13.14% of your health insurance premium
- Employment Insurance (고용보험): 0.9% of salary
- Income Tax (소득세): varies by salary + deductions
- Local Income Tax (지방소득세): 10% of income tax
Understanding the Two Sections: 지급 vs 공제
Every Korean payslip is divided into two columns:
- 지급 (Ji-geup) — What you EARN: This is everything your employer pays you — base salary, overtime, bonuses, allowances.
- 공제 (Gong-je) — What is DEDUCTED: This is everything taken out — insurance, taxes, and any other deductions.
The final number at the bottom — 실수령액 (Sil-su-ryeong-aek) or 차인지급액 — is your actual take-home pay. This is what hits your bank account.
The 지급 Side — What You Earn
| Korean Term | English | What It Means |
|---|---|---|
| 기본급 | Base Salary | Must match your employment contract exactly. 2026 minimum wage: ₩10,320/hour. |
| 식대 | Meal Allowance | Up to ₩200,000/month is tax-exempt. Common in Korean companies. |
| 교통비 | Transportation Allowance | Partial commuting support. May appear separately. |
| 초과근무수당 | Overtime Pay | Legally 1.5x hourly rate for hours over 40/week. Check this line carefully. |
| 상여금 | Bonus | Performance or seasonal bonus. Fully taxable. |
The 공제 Side — Every Deduction Explained (2026 Rates)
① 국민연금 (Gungmin Yeongeumm) — National Pension: 4.75%
This is Korea's national pension fund. In 2026, the total contribution rate rose from 9% to 9.5% — the first increase in 27 years — split equally between you and your employer.
- Your share: 4.75% of monthly salary
- Employer pays: another 4.75%
- Monthly cap on pensionable income: ₩6,170,000 (so maximum deduction is ~₩293,075/month)
② 건강보험 (Geongang Boheom) — Health Insurance: 3.595%
Korea's National Health Insurance (NHIS) is mandatory for all employees regardless of visa type.
- Your share: 3.595% of monthly salary
- Employer matches: 3.595%
- Example: ₩3,000,000 salary → your deduction is ₩107,850/month
Important April reconciliation: Every April, NHIS recalculates your actual premium based on your prior year's total income. If you earned more than estimated, you'll see an extra deduction in your April payslip. This is called 정산보험료 (Jeong-san Boheom-yo) — don't panic when it appears.
③ 장기요양보험료 (Janggi Yoyang Boheomryo) — Long-Term Care Insurance: 13.14% of health insurance premium
This is NOT 13.14% of your salary. It is 13.14% of your health insurance premium line.
- If your health insurance deduction is ₩107,850 → long-term care adds ₩14,171
- Effective rate: approximately 0.9448% of gross salary
④ 고용보험 (Goyang Boheom) — Employment Insurance: 0.9%
Funds Korea's unemployment benefit system.
- Your share: 0.9% of monthly salary
- Employer pays a higher rate depending on company size
- Example: ₩3,000,000 salary → your deduction is ₩27,000/month
Can foreigners claim unemployment benefits? Generally yes, if you are involuntarily terminated and meet the contribution period requirements. Check eligibility at 1350 (Ministry of Labor English line).
⑤ 소득세 (Sodeukse) — Income Tax
Monthly income tax is withheld based on NTS (National Tax Service) withholding tables — it is an estimate, not your final tax liability. The actual amount is reconciled every February during 연말정산 (year-end tax settlement).
Foreigners have two options:
- Progressive rate (누진세): 6%–45% depending on income bracket, but you can claim deductions (rent, medical, pension, credit card spending). Usually better for most foreigners earning under ~₩130,000,000/year.
- Flat 19% rate (단일세율): Available to foreigners who started working in Korea by December 31, 2026. Simple flat 19% on all employment income — but you forfeit ALL deductions. Better for very high earners above ₩130,000,000/year.
⑥ 지방소득세 (Jibang Sodeukse) — Local Income Tax
Automatically 10% of your income tax (소득세) line. No calculation needed — if your income tax is ₩50,000, local income tax is ₩5,000. Always appears as a separate line.
Real Example: ₩3,000,000 Monthly Salary (2026)
| Deduction | Korean | Rate | Amount |
|---|---|---|---|
| National Pension | 국민연금 | 4.75% | ₩142,500 |
| Health Insurance | 건강보험 | 3.595% | ₩107,850 |
| Long-term Care | 장기요양보험 | 13.14% of health | ₩14,171 |
| Employment Insurance | 고용보험 | 0.9% | ₩27,000 |
| Income Tax (est.) | 소득세 | ~varies | ~₩60,000 |
| Local Income Tax | 지방소득세 | 10% of income tax | ~₩6,000 |
| Total Deductions | ~₩357,521 | ||
| Take-Home Pay | 실수령액 | ~₩2,642,479 |
Common Payslip Errors That Cost Foreign Workers Money
Payslip errors are more common than most people think. These are the most frequent problems found in foreign workers' payslips:
- Overtime not paid or miscalculated. Korean law requires 1.5x your hourly rate for hours over 40/week. If you worked extra hours and don't see 초과근무수당 on your payslip — or the number looks too low — ask HR immediately.
- Meal allowance included in taxable income. Up to ₩200,000/month meal allowance (식대) is supposed to be tax-exempt. If your employer is applying tax to the full amount, you're losing money monthly.
- Pension deduction based on wrong salary figure. Your pension should be calculated on your actual monthly salary. If numbers don't match — e.g., your pension shows 4.75% of a lower number than your contract salary — ask payroll.
- Missing workers' compensation insurance (산재보험). This one should NOT appear on your payslip at all — it is paid 100% by your employer. If you see a deduction labeled 산재보험, that is an error.
- April health insurance reconciliation spike. A large unexpected deduction in April is usually the 정산보험료 catch-up. It is normal — but ask HR to explain the exact calculation if the amount surprises you.
- Document everything — photograph each payslip every month
- Ask HR in writing (email or KakaoTalk message) for a line-by-line explanation
- If unresolved, contact the Ministry of Employment and Labor helpline: 1350 (English available)
- For wage theft complaints: file at moel.go.kr or visit your nearest Labor Office
What Does NOT Appear on Your Payslip (But Your Employer Pays)
- 산재보험 (Workers' Compensation Insurance): 100% employer-paid. Never deducted from your salary.
- Employer's matching pension (4.75%): Your employer pays an equal 4.75% on top of yours. This does not appear as your income but is paid to NPS on your behalf.
- Employer's matching health insurance (3.595%): Same — employer pays this directly.
Tips Nobody Tells You
- Photograph every payslip every month. Workers who lose disputes almost always lost because they had no documentation. Keep photos of every single payslip going back to day one.
- Your gross salary on the contract is BEFORE all deductions. Korean job offers quote 세전 (before-tax) figures. Always ask what the 실수령액 (take-home) will be before accepting an offer.
- The pension rate increased in 2026. From January 1, 2026, the employee pension contribution went from 4.5% to 4.75%. If your payslip still shows 4.5%, your employer may not have updated the system. Check.
- Workers' comp (산재보험) is free for you. If you're injured at work, you are covered — and it costs you nothing. Your employer pays this entirely. Don't let anyone tell you otherwise.
- Even if you resign, you get severance pay after 1 year of employment. Resignation does not forfeit severance under Korean law. See our guide: Your Hagwon Is Breaking Your Contract — Here's What You Can Actually Do About It
Key Korean Payslip Vocabulary
| Korean | Pronunciation | Meaning |
|---|---|---|
| 급여명세서 | Geup-yeo-myeong-se-seo | Payslip / wage statement |
| 기본급 | Gi-bon-geup | Base salary |
| 지급 | Ji-geup | Earnings section |
| 공제 | Gong-je | Deductions section |
| 실수령액 | Sil-su-ryeong-aek | Take-home pay (net) |
| 세전 | Se-jeon | Before tax (gross) |
| 세후 | Se-hu | After tax (net) |
| 초과근무수당 | Chogwa-geunmu-sudang | Overtime pay |
| 정산보험료 | Jeongsan-boheomryo | Health insurance reconciliation (April) |
Understanding your Korean payslip is not just about curiosity — it is about protecting your income. Payslip errors go unnoticed for months, sometimes years. Now that you know exactly what every line means and what the 2026 rates should be, you can verify your own payslip every single month.
Got questions about your payslip? Drop them in the comments below.
- If You Worked in Korea, Your Employer Has Been Matching Your Pension Contributions — And Most Foreigners Leave Without Claiming It Back
- Every January, Korean Employers Process a Year-End Tax Reconciliation — And Most Foreign Workers Have No Idea How to Make It Work in Their Favor
- Your Hagwon Is Breaking Your Contract — Here's What You Can Actually Do About It
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