In South Korea, bonuses and allowances are not legally mandatory and if provided are done so on a voluntary basis.
Allowances
Renting:
Tax-Free Housing: While not mandatory, it is standard for employers to provide tax-free housing.
Transport Allowance:
Amount: Up to KRW 200,000 per month.
Tax-Free: This allowance is provided tax-free to cover transportation costs.
Meal Allowance:
Amount: Up to KRW 200,000 per month.
Tax-Free: Meal allowances are provided tax-free to help cover dining expenses.
Telephone Allowance:
Provision: Often provided to cover work-related phone expenses, though specifics may vary by employer.
Children’s Education Allowance:
Provision: Some employers offer allowances to support employees with children’s educational expenses, though this varies.
Bonuses
Bonus:
Bonuses are not mandatory by law.
Provision: While not required, many employers offer bonuses as part of their compensation packages to reward performance or for special occasions.
These allowances and bonuses are typically provided at the discretion of the employer and are designed to support employees in various aspects of their personal and professional lives.