social security programs social security programs social security programs social security programs social security programs social security programs
Under the various Korean social security related laws, companies in Korea (including foreign-invested companies) are required to participate in the four (4) social security programs including national pension, national health insurance, employment insurance, and industrial accident compensation insurance.
The premiums/contributions borne by the employer and its employees are calculated by multiplying each employee’s monthly gross salary by the insurance premium rates specified in the table below.
The employee portion of premiums/contributions should be deducted from the salaries of the employees on a monthly basis and remitted to the social security agencies together with the employer portion of premiums/contributions by the 10th day of the following month.
Insurance Premium Rates
(Effective from July. 2018)
Types of Insurance
National Health Insurance
1. National Health Insurance
2. Long-term Care Security for the Elderly
1. Unemployment benefit
2. Employment stability and work capacity development
Industrial Accident Compensation Insurance
1. Industrial Accident Compensation Insurance
2. Wage claim allotment
Note 1 : The maximum contribution limit for each party is KRW 210,600 per month.
Note 2 : The maximum contribution limit for each party is KRW 3,096,600 per month.
Note 3 : Assessed at 7.38% of Medical Insurance premium rate (3.12% × 7.38% = 0.230256%)
Note 4 : Rates vary depending on the number of employees
Note 5 : Rates vary depending on the type of business
Social Security Programs for Foreigner Employees
1. National Pension
Foreign employees from 20 countries (subject to change) – Armenia, Bangladesh, Belarus, Cambodia, East Timor, Egypt, Fiji, Georgia, Iran, Myanmar, Nepal, Pakistan, Republic of Maldives, Republic of South Africa, Singapore, Saudi Arabia, Swaziland, Tonga, Vietnam and Ethiopia – are not required to participate in the Korean National Pension System under the principle of reciprocity or pursuant to the social security agreement, but shall be required to submit certain exemption documents.
2. National Health Insurance
Foreign employees can be exempt from participation in the mandatory national health insurance program with appropriate supporting documents if they are already covered by insurance programs provided by their home country, foreign insurance carriers, or their respective employer.
3. Employment Insurance
Foreign employees’ participation in the employment insurance varies depending on the type of visa issued to the foreign employees.