What is the 19% flat tax rate for foreigners in Korea?

Foreign residents working in Korea can opt for a 19% flat tax rate on their gross salary instead of the progressive tax system. This is often beneficial for high earners but may not be advantageous for lower salaries. The option is available for up to 20 years of residency.

What are the 4 major insurances in Korea?

The 4 major social insurances are: National Pension (4.5% employee share), National Health Insurance (3.545%), Long-term Care Insurance (12.95% of health insurance), and Employment Insurance (0.9%). Industrial Accident Insurance is paid entirely by employers.

Can foreigners get their National Pension back when leaving Korea?

Citizens from countries without a pension reciprocity agreement with Korea can apply for a lump-sum refund of their pension contributions when leaving Korea permanently. This includes the US, Japan, China, and many other countries.

How much is the minimum wage in Korea for 2026?

The 2026 minimum wage in Korea is ₩10,030 per hour. For a standard 40-hour work week with weekly holiday pay included, this translates to approximately ₩2,096,270 per month.

Updated for 2026 Korea Tax & Social Insurance Rates

2026 Korea Net Pay Calculator

Applying the latest 2026 tax tables and 4 major insurance rates
to calculate your actual monthly take-home income.

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Last Updated: Feb 2026

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KRW

Expat Special Options

19% Flat Tax Rate

NPS Exemption (National Pension)

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Korea Salary & Tax Guide for Expats

Understanding Net Pay in Korea

Your net pay (or take-home pay) is what remains after mandatory deductions from your gross salary. In Korea, these deductions include the 4 major social insurances and income tax. Many expats are surprised to find their actual paycheck is 15-25% less than their contract salary.

2026 Social Insurance Rates

• National Pension: 4.5% (capped at ₩286,650/month)
• Health Insurance: 3.545%
• Long-term Care: 12.95% of health premium
• Employment Insurance: 0.9%

💡 The 19% Flat Tax Option for Foreigners

Foreign workers in Korea can choose between the standard progressive tax system (6-45% depending on income) or a flat 19% tax rate on gross income. This option is typically beneficial for those earning above ₩50 million annually. Note: If you elect the 19% flat rate, you cannot claim tax deductions or credits.

Frequently Asked Questions

Q Can I get my pension contributions back when I leave Korea?

Yes! If your country doesn't have a pension agreement with Korea (like the US, Japan, or China), you can claim a lump-sum refund when you permanently leave. Apply through the NPS within 5 years of departure.

Q Is the 19% flat tax always better for foreigners?

Not always. If your annual income is below ₩40-50 million, the progressive tax system with deductions may result in lower taxes. Use our calculator to compare both options for your situation.

Q Do E-2 visa holders pay the same taxes as Koreans?

Yes, E-2 (English teacher) visa holders pay the same social insurances and income taxes as Korean employees. The main difference is the option to use the 19% flat tax rate and potential pension exemptions based on nationality.

Q What is included in "4 major insurances"?

The 4 major insurances (사대보험) are: National Pension, National Health Insurance, Employment Insurance, and Industrial Accident Insurance. Employees pay ~9% of their salary, with employers matching a similar amount.

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