Korean 4-major insurance demystified (2026)

People often see the headline rate (e.g., “health 7.19%”) and assume Korean payroll insurance is around 7%. The actual deduction is closer to 9.5% of monthly salary. Here's why, line by line.

National Pension — 4.75%

Total rate 9.5% (up from 9% in January 2026), split equally. Employee pays 4.75% — KRW 142,500 on a 3M salary. Note the cap: salary above KRW 6,590,000 is not subject (the income base cap, reset every July; KRW 410,000 floor). Even a 10M earner pays only 313,020 KRW for pension.

Health Insurance — 3.595%

Total 7.19%, split equally. No cap. Higher earners pay proportionally more.

Long-term Care — 13.14% 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. The employer pays the industry rate plus a 0.06% commuting-accident rate — under the 2026 MOEL notice that is 0.56% for finance and insurance, 0.66~2.46% for manufacturing, 3.56% for construction and up to 18.56% for coal mining and quarrying. The official average is 1.47%; our calculator defaults to 0.86% (wholesale/retail, food and lodging) and lets you enter your own rate. Doesn't appear on the employee payslip.

Bottom line

Employee deduction ≈ 9.7% of salary (drops to 8.1% above the pension cap). Employer burden ≈ 10.8% (with the 0.86% workers' comp default). Combined ≈ 20.5% of monthly salary going to social insurance. Try the calculator before negotiating a salary or making a hire.