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South Korea’s social security program is considered developed, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in South Korea, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about South Korea’s social security program.
South Korea’s social security system covers economic risks, such as universal healthcare, the National Pension fund, Employment Insurance, and Industrial Accident Compensation Insurance.
Universal Healthcare is funded and distributed through the National Health Insurance (NHI) scheme. Both employers and employees contribute towards National Health Insurance.
All employees in South Korea must make contributions towards the National Pension fund, the National Health Insurance scheme, and Unemployment Insurance.
For 2023, social security contributions for employees in South Korea are as follows:
Therefore, minimum employee contributions towards social security in South Korea for 2023 equate to 8.945%.
All South Korean employers make mandatory contributions towards the National Pension fund, the National Health Insurance scheme, Unemployment Insurance, and the Industrial Accident Compensation Insurance scheme.
In 2023, employer contributions towards social security are as follows:
Minimum employer contributions towards social security in South Korea total ≈9.545%.
To the north, South Korea has a militarized land border with North Korea, but the country shares maritime borders with China and Japan.
Social security contributions in South Korea are, on average, lower, than those in the surrounding countries:
South Korea: ≈9.545%
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.
Employers in South Korea must contribute a minimum of 9.545% towards the system of social security.
South Korea’s social security system covers for certain economic risks. Employees benefit from the National Pension fund, the National Health Insurance scheme, as well as Unemployment Insurance.