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Keep in mind that all employment and labor laws apply to foreign nationals working in South Korea. A major employee benefit in South Korea is health insurance. The National Health Insurance Act (1999) and the Occupational Safety and Health Act (1990) are both central to South Korea’s universal healthcare system.
Universal healthcare is funded through the National Health Insurance (NHI) scheme, which both employers and employees make mandatory contributions towards.
With Horizons’ South Korea PEO on your side, localized benefits for South Korea, including Unemployment Insurance, Accident & Life Insurance as well as Full Health Benefits are offered seamlessly.
All employers and employees are obligated to contribute towards the National Pension fund. The National Pension Act (1986) and the Guarantee of Employees’ Retirement Benefits Act (2005) set out minimum standards relating to retirement and pensions.
Remember that employers must provide a retirement benefit to all employees who have worked for at least one year. Larger businesses may enroll their employees in corporate pension schemes; as such, certain minimum retirement benefits may also be in the form of a corporate pension.
Total social security contributions towards the National Pension fund total 9% of monthly salary up to KRW 5.53 million (the minimum payable is KRW 0.35 million).
The Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities (2007) sets out certain provisions for individuals with disabilities. The stated goal of the act is to: “facilitate and promote employment opportunities and the vocational rehabilitation of disabled persons, so that they may be able to enjoy their lives with human dignity through vocational lives fit for their abilities.”
Social security schemes relating to disability include the Industrial Accident Compensation Insurance. All employers in South Korea contribute between 0.6% and 18.5% of monthly payroll, depending on their industry.
Unemployment Insurance is funded through the contributions of employers and their employees. The contribution totals 1.8% of monthly salary, and is split equally between employer and employee, i.e. 0.9% each.
Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Employees working in South Korea receive a number of mandatory benefits. These employee benefits include healthcare, pensions, unemployment insurance, and accident & disability insurance.
With Horizons’ South Korea PEO on your side, localized employee benefits for South Korea include Unemployment Insurance, Accident & Life Insurance, and full health benefits are covered.