When employees in Korea get paid, social insurance premiums come out before — and in larger amounts than — taxes. On a ₩40 million salary they come to nearly ₩300,000 a month, yet few people know exactly which insurance they pay how much for. This article walks through how the four social insurances work and how they are calculated.
What the four social insurances are
The four social insurances are the state-run national pension, health insurance, employment insurance and industrial accident compensation insurance. In principle every workplace with even one employee must enroll, and premiums are split between employer and employee.
A long-term care insurance premium is charged along with health insurance, so payslips usually show these lines: national pension, health insurance, long-term care and employment insurance (industrial accident insurance, paid only by the employer, doesn’t appear).
What each covers and the 2026 rates
| Insurance | What it covers | Total rate | Employee share |
|---|---|---|---|
| National pension | Old-age, disability and survivor pensions | 9.5% | 4.75% |
| Health insurance | Medical bills, health checkups | 7.19% | 3.595% |
| Long-term care insurance | Elderly care services | 13.14% of health premium | Half |
| Employment insurance | Unemployment and parental leave benefits | 1.8% + extra | 0.9% |
| Industrial accident insurance | Work-related injuries and illness | Varies by industry | None |
National pension
Anyone aged 18 to under 60 is covered, and paying in for 10 years or more entitles you to a pension in old age. Under the pension reform passed by the National Assembly in 2025, the premium rate rises 0.5 percentage points a year from 2026, reaching 13% in 2033. 2026 is the first year, with the rate rising from 9% to 9.5%.
Health insurance and long-term care insurance
Health insurance covers the insurer’s share of medical bills and the cost of health checkups. Long-term care insurance provides care services for people who can’t live independently because of age-related illness, and is collected together with health insurance as a percentage of the health premium.
Employment insurance
It funds unemployment benefits and parental leave benefits. The unemployment benefit part (1.8%) is split equally between employer and employee, and the employer alone pays extra for job stability and skills development programs. That is why the employee share is 0.9%.
Industrial accident insurance
It pays medical costs and sick-leave benefits if you are injured at work or fall ill because of your job. The premium is paid entirely by the employer, so it doesn’t appear on employees’ payslips.
What premiums are based on
Social insurance premiums are calculated not on your whole pre-tax pay but on pay minus tax-free income. Tax-free items such as meal allowances (up to ₩200,000 a month) and car allowances reduce premiums accordingly.
- The national pension has a ceiling and a floor on the monthly income it is based on. Income above the ceiling is counted only up to the ceiling, and the limits are adjusted every July.
- Health insurance is collected on an estimate of the year’s pay and then settled against actual pay the following April. That is why a lot of premium can come out of your April pay the year after a raise.
- Employment insurance is calculated by applying the rate to pay actually received.
How much social insurance comes out of your salary?
Calculate your take-home payHow to check your premiums
- Payslip: the payslip your employer issues every month shows each deduction. Issuing payslips has been mandatory since November 2021.
- Social insurance information portal (4insure.or.kr): see your enrollment and premiums in one place.
- Each agency’s app: the National Pension Service and National Health Insurance Service apps show your payment history and expected pension.
Frequently asked questions
Am I enrolled during a probation period?
Yes. Even during probation, a worker employed under an employment contract must be enrolled from the start date. Delaying enrollment because of probation is not allowed in principle.
Do freelancers (3.3% withholding) pay social insurance?
Freelancers who have 3.3% withheld as business income are not employee members, so they aren’t enrolled through a company. Instead they pay the national pension and health insurance as regional members, covering the full amount themselves. Some special-type workers and artists are, however, covered by employment and industrial accident insurance.
Are part-time jobs covered?
It depends on hours and duration. Generally, working 60 hours or more a month brings most insurances into effect, while very short-time workers under 60 hours a month may be excluded from some. Industrial accident insurance applies to all workers regardless of hours.
What happens to health insurance when I leave a job?
After leaving you switch to regional membership or can register as a dependent of a family member. If the regional premium is much higher than your workplace premium, you can apply for “voluntary continued coverage” to keep paying your workplace-era premium for a set period.
References
- National Pension Service
- National Health Insurance Service
- Korea Workers’ Compensation & Welfare Service (employment and industrial accident insurance)