1. Introduction
South Korea boasts a highly educated and technologically advanced workforce. While salaries are competitive, employers must account for social insurance contributions, severance payments, and cultural norms such as annual bonuses. This guide outlines the total cost of hiring a full-time employee in South Korea.
2. Average Gross Monthly Salaries
Salary benchmarks in South Korea vary by role and region:
- Admin/Clerical: KRW 2,000,000 – 2,800,000
- Mid-level professionals: KRW 3,000,000 – 5,000,000
- IT/Engineering: KRW 4,000,000 – 7,000,000
- Senior Management: KRW 7,000,000 – 15,000,000+
As of 2025, the minimum wage is KRW 9,860 per hour.
3. Statutory Contributions and Employer Taxes
Employers must contribute to the four major insurances:
- National Pension: 4.5%
- Health Insurance: ~3.545%
- Employment Insurance: 0.9–1.5%
- Workers’ Compensation: 0.7–18.6% (industry-dependent)
Total employer burden is around 10–13% of gross salary.
4. Other Mandatory Costs
- Annual Leave: 15 days (increases with tenure)
- Public Holidays: ~15 days annually (based on the lunar calendar)
- Maternity Leave: 90 days (first 60 paid by employer)
- Paternity Leave: 10 days paid
- Parental Leave: Up to 1 year per parent (paid by government)
- Sick Leave: Not mandated but usually offered under company policy
5. Optional & Market-Driven Benefits
Companies often provide:
- Commuter or lunch stipends
- Private health insurance
- Performance bonuses (year-end or quarterly)
- Flexible work hours or telecommuting support
6. Hidden & Overlooked Costs
- Severance pay equivalent to one month’s salary per year of service
- Audit risk if contributions are underreported
- Misclassification of contractors
- Strict compliance with employment documentation
7. Advisory Notes for Employers
Contracts must be compliant with the Labor Standards Act. Severance accruals must be tracked from the start. Employers should implement policies on leave, work hours, and terminations to avoid disputes.
8. How AYP Helps You Manage Cost Efficiently
AYP supports hiring in Korea by managing social insurance contributions, severance liabilities, and HR compliance—ensuring you operate smoothly and cost-effectively.
9. Contact Us
Hiring in South Korea? Contact AYP to streamline employment costs and compliance.
