TABLE OF CONTENTS
South Korea's social security system includes several types of insurance and contributions designed to provide workers with various benefits.
Important note: For employees in South Korea who do not start on the 1st of the month, there will be no withholdings for Health Insurance, Long-term Care Insurance, and National Pension during their first month of employment. These statutory contributions will begin from the following month once the employee is fully enrolled in the respective programs.
Workers Compensation Insurance (WCI)
Purpose: Provides coverage for industrial disasters and accidents.
2024 Rate: Ranges from 0.76% to 18.6% of total income, depending on the type of business and industry.
National Health Insurance (NHI)
Purpose: Covers general health care costs.
2024 Rate: 3.545% of total income.
Maximum Salary Basis: Contributions are calculated based on a maximum salary of KRW 7,047,900 per month.
Long Term Care Insurance
Purpose: Part of the National Health Insurance, covering long-term care needs.
2024 Rate: 0.4591% of total income.
Contribution: Included within the NHI contributions.
National Pension Fund (NP)
Purpose: Provides retirement benefits.
2024 Rate: 4.5% of total income.
Maximum Salary Basis: Calculated based on a maximum salary of KRW 6,370,000 per month.
Exemption Conditions for NP: Employees covered by social security in a country with which South Korea has a totalization agreement may be exempt from contributing to the National Pension Fund to avoid double taxation.
Employment Insurance (EI)
Purpose: Provides unemployment benefits and other employment-related protections.
Contribution rate:
The employer contributes approximately 1.15% of total payroll costs.
The employee contributes roughly 0.9% of their salary.
EI rates can vary by industry and company size, typically ranging from 1.15% to 1.75%.
Coverage for Expatriates & Visa Categories
EI eligibility for foreign workers in Korea depends on their visa type and employment conditions.
Mandatorily Covered
F‑2 (Resident)
F‑5 (Permanent Resident)
These visa holders are automatically enrolled in EI.
Voluntarily Eligible
F‑4 (Overseas Koreans)
C‑4 (Short-term Employee)
E‑1 (Professor)
E‑10 (Vessel Crew)
These visa categories may choose to enroll in EI voluntarily.
Exclusions
Migrants in visa categories not listed above, such as D‑2 (Student), are not eligible, unless covered under a bilateral agreement under the Principle of Reciprocity.
Special Provision for F‑4 Visa Holders
Under Article 3‑3 of the Enforcement Decree of the Unemployment Insurance Act, a foreign national with an F‑4 visa is not required to participate in EI, even if employed, but may choose to do so voluntarily.