Korean 4-major insurance demystified (2026)

People often see the headline rate (e.g., “health 7.09%”) and assume Korean payroll insurance is around 7%. The actual deduction is closer to 9.4% of monthly salary. Here's why, line by line.

National Pension — 4.5%

Total rate 9%, split equally. Employee pays 4.5%. KRW 135,000 on a 3M salary. Note the cap: salary above KRW 6.17M is not subject. Even a 10M earner pays only 277,650 KRW for pension.

Health Insurance — 3.545%

Total 7.09%, split equally. No cap. Higher earners pay proportionally more.

Long-term Care — 12.95% of health insurance

Calculated against the health premium, not salary. Tiny per month but compounds.

Employment Insurance — 0.9% + 0.25%

0.9% from employee + 0.9% from employer for unemployment benefits. Employer additionally pays 0.25% for vocational training (companies under 150).

Industrial Accident — employer only

0% from employee. Employer pays 0.6%–30% depending on industry. Average 0.86%. Doesn't appear on the employee payslip.

Bottom line

Employee deduction ≈ 9.4% of salary (drops to ~7% above the pension cap). Employer burden ≈ 10.5%. Combined ≈ 20% of monthly salary going to social insurance. Try the calculator before negotiating a salary or making a hire.