How is take-home pay calculated?
Take-home pay is your monthly pay minus the four social insurances (national pension, health insurance, long-term care insurance, employment insurance) and taxes (earned income tax and local income tax).
Social insurance is charged on taxable pay after subtracting tax-free income (such as meal allowances), so the more tax-free items you have, the more you take home.
2026 social insurance rates in Korea
| Item | Total rate | Employee share |
|---|---|---|
| National pension | 9.5% | 4.75% |
| Health insurance | 7.19% | 3.595% |
| Long-term care insurance | 13.14% of health premium | Half |
| Employment insurance (unemployment benefits) | 1.8% | 0.9% |
Under the 2025 pension reform, the national pension rate rises 0.5 percentage points a year from 2026, reaching 13% in 2033. The monthly income it is based on also has a ceiling and a floor, so income above the ceiling doesn’t raise the premium.
How is earned income tax set?
The income tax withheld each month follows the National Tax Service’s simplified withholding tax table. The table collects a year’s tax in advance in monthly installments based on monthly pay and number of dependents. So it differs from your actual tax for the year, and the difference is refunded or charged in year-end tax settlement the following February.
- The more dependents you have, the larger your personal deductions and the less tax withheld each month.
- Children aged 8–20 reduce tax further through the child tax credit.
- Local income tax adds another 10% of the earned income tax.
2026 take-home pay by salary
Values calculated with this calculator for 1 dependent (yourself), a ₩200,000 monthly tax-free meal allowance and severance paid separately. Social insurance is the sum of the employee shares of national pension, health, long-term care and employment insurance; tax is earned income tax plus local income tax.
| Salary | Monthly pay | Social insurance | Tax | Monthly take-home |
|---|---|---|---|---|
| ₩24M | ₩2,000,000 | ₩174,900 | ₩16,370 | ₩1,808,730 |
| ₩28M | ₩2,333,333 | ₩207,290 | ₩23,920 | ₩2,102,123 |
| ₩30M | ₩2,500,000 | ₩223,490 | ₩27,690 | ₩2,248,820 |
| ₩35M | ₩2,916,667 | ₩263,970 | ₩41,670 | ₩2,611,027 |
| ₩40M | ₩3,333,333 | ₩304,470 | ₩84,040 | ₩2,944,823 |
| ₩45M | ₩3,750,000 | ₩344,940 | ₩143,560 | ₩3,261,500 |
| ₩50M | ₩4,166,667 | ₩385,430 | ₩207,540 | ₩3,573,697 |
| ₩55M | ₩4,583,333 | ₩425,920 | ₩268,560 | ₩3,888,853 |
| ₩60M | ₩5,000,000 | ₩466,430 | ₩329,580 | ₩4,203,990 |
| ₩70M | ₩5,833,333 | ₩547,380 | ₩451,610 | ₩4,834,343 |
| ₩80M | ₩6,666,667 | ₩623,780 | ₩643,880 | ₩5,399,007 |
| ₩90M | ₩7,500,000 | ₩665,180 | ₩851,780 | ₩5,983,040 |
| ₩100M | ₩8,333,333 | ₩706,570 | ₩1,059,680 | ₩6,567,083 |
The table shows tax rising quickly once salary passes ₩40 million. From a tax base above ₩14 million the rate rises from 6% to 15%, and the earned income deduction rate falls as total pay grows. Above ₩80 million, by contrast, the national pension hits its income ceiling, so social insurance grows more slowly.
Example: a ₩40 million salary
Salary ₩40 million, ₩200,000 monthly tax-free meal allowance, 1 dependent (yourself), severance separate
- Monthly pay: ₩40 million ÷ 12 = ₩3,333,333. Subtracting the ₩200,000 tax-free amount leaves ₩3,133,333 as the base for social insurance and tax.
- National pension: 3,133,333 × 4.75% ≈ ₩148,830
- Health insurance: 3,133,333 × 3.595% ≈ ₩112,640; long-term care: 112,640 × 13.14% ≈ ₩14,800
- Employment insurance: 3,133,333 × 0.9% ≈ ₩28,200
- Income tax: about ₩76,400 a month by the simplified table formula; local income tax is 10% of that, ₩7,640
- Take-home pay: 3,333,333 − 388,510 = about ₩2,944,823
For the details of social insurance and tax, see Korea’s four social insurances and year-end tax settlement basics.
What is a salary that includes severance?
Some Korean companies state the salary in the contract with severance pay included. In that case the salary divided by 13 is your monthly pay, and the remaining 1/13 is paid when you leave. At the same headline salary, the monthly take-home is lower if severance is included, so check this when comparing offers.
Frequently asked questions
The result is slightly different from my payslip.
The simplified table uses fixed amounts per pay band, so differences of tens to thousands of won can occur. Differences can be larger if your employer withholds at 80% or 120%, or there are other items such as bonuses, allowances or union dues.
What counts as tax-free pay?
Typical items are meal allowances (up to ₩200,000 a month), car allowances (up to ₩200,000 a month), childcare allowances for children aged 6 or under (up to ₩200,000 a month) and research allowances. Enter the total of the tax-free items on your payslip.
How do I count dependents?
Count yourself plus eligible dependents for the basic deduction — a spouse, children, parents and so on with annual income of ₩1 million or less (₩5 million or less in total pay if they only have earned income) — as declared on the deduction form you submitted to your employer.
Basis and sources
- National pension rate: National Pension Service
- Health and long-term care insurance rates: National Health Insurance Service
- Simplified withholding tax table and income tax rates: National Tax Service, Enforcement Decree of the Income Tax Act, Appendix 2
- Employment insurance rate: Employment Insurance