Last updated: 3 November 2026. Prepared by: the tax and accounting team at Pearson & Partners Korea, WTC Trade Tower, Gangnam-gu, Seoul.
Primary sources: the National Pension Act reform, the Ministry of Health and Welfare’s 2027 health insurance decision, and the National Health Insurance Service.
Korean employers will pay about 10.2% of salary in social insurance in 2027, before industrial accident insurance. The reason is a rate rise already written into law: the National Pension contribution goes from 9.5% to 10.0% on 1 January 2027, split 5.0% employer and 5.0% employee. Health insurance stays frozen at 7.19%, so pension is the only major rate that moves.
Most budgets get this wrong in the same way. They track the minimum wage headline and miss the quieter line underneath it, which is a payroll cost that rises even when salaries do not. Here is the full 2027 rate table, a worked cost per hire at four salary levels, and what is still waiting on a government notice.
The quick answer: In 2027 the employer share is 5.0% pension, 3.595% health, about 0.47% long-term care and 1.15% to 1.75% employment insurance, plus an industry-based industrial accident rate. For a typical employer with fewer than 150 staff that is roughly 10.2% of pay before industrial accident insurance, using the 2026 long-term care and employment insurance rates as placeholders.
Key facts about Korea social insurance in 2027
- National Pension: 10.0% in 2027 (5.0% each), up from 9.5%. It rises 0.5 percentage points every January until it reaches 13% in 2033.
- National Health Insurance: frozen at 7.19% for 2027, a decision taken on 8 September 2026. Employer and employee each pay 3.595%.
- Long-term care and employment insurance: 2027 notices not yet announced as of 3 November 2026. The 2026 rates are the best placeholder.
- Employer-only costs: the employment stabilization add-on and industrial accident insurance, both set by company size or industry.
- The four insurances: pension, health with long-term care, employment, and industrial accident, collectively called 4대보험.
The 2027 rate table
| Insurance | Employer | Employee | 2026 | 2027 | Status |
|---|---|---|---|---|---|
| National Pension | 5.0% | 5.0% | 9.5% total | 10.0% total | Set by statute from 1 January 2027 |
| National Health Insurance | 3.595% | 3.595% | 7.19% total | 7.19% total | Frozen, decided 8 September 2026 |
| Long-term care | 0.4724% | 0.4724% | 0.9448% of income (13.14% of the health premium) | Not announced | 2026 rate used as placeholder |
| Employment insurance (unemployment benefit) | 0.9% | 0.9% | 1.8% total | Not announced | 2026 rate used as placeholder |
| Employment stabilization and vocational training | 0.25% to 0.85% | None | By company size | Not announced | Employer-only |
| Industrial accident | Varies by industry | None | Industry-based | Not announced | Employer-only |
What it costs per hire: a worked salary table
The table below shows the employer share per month at 2027 rates for four salary levels. The first row uses the 2027 minimum wage of KRW 10,700 per hour on the standard 209-hour month, which our guide to Korea minimum wage 2027 explains.
| Monthly salary (KRW) | Pension 5.0% | Health 3.595% | Long-term care | Employment 1.15% | Employer subtotal | Rise vs 2026 |
|---|---|---|---|---|---|---|
| 2,236,300 (2027 minimum wage) | 111,815 | 80,395 | 10,564 | 25,717 | 228,491 | +5,591 |
| 3,000,000 | 150,000 | 107,850 | 14,172 | 34,500 | 306,522 | +7,500 |
| 4,000,000 | 200,000 | 143,800 | 18,896 | 46,000 | 408,696 | +10,000 |
| 5,000,000 | 250,000 | 179,750 | 23,620 | 57,500 | 510,870 | +12,500 |
At every salary level the subtotal works out to 10.22% of pay, which is 0.25 percentage points more than in 2026. That is the cost of the pension step alone. On a KRW 4,000,000 salary it is KRW 10,000 more per month, or KRW 120,000 a year, per employee.
Add industrial accident insurance
Industrial accident insurance is paid by the employer alone, and its rate depends on the industry. Practitioner guides put the range at roughly 0.56% to 18.56%, and cite about 1.47% as the 2026 national average. At 1.47%, a KRW 4,000,000 salary adds KRW 58,800 a month, for a total employer social insurance cost of about KRW 467,500, or 11.7% of pay. Confirm your industry rate with the Korea Workers’ Compensation and Welfare Service.
Employment insurance depends on your company size
The employer pays 0.9% for the unemployment benefit, plus an employment stabilization and vocational training add-on that grows with headcount. Employees pay a flat 0.9%.
| Employer size | Stabilization add-on | Total employer rate |
|---|---|---|
| Fewer than 150 employees | 0.25% | 1.15% |
| 150 or more, priority-support company | 0.45% | 1.35% |
| 150 to 999 employees, other companies | 0.65% | 1.55% |
| 1,000 or more employees | 0.85% | 1.75% |
If you hire through an Employer of Record, the bracket is set by the provider’s Korean headcount, not yours. Our guide to how an Employer of Record works in Korea and our comparison of Korea business setup vs EOR show how that affects the bill.
What these figures leave out
- Severance pay. Retirement benefits accrue separately and generally amount to about one month of average wages per year of service. They are not part of the four insurances.
- Income tax withholding. The employee’s income tax is withheld and remitted by the 10th of the following month, which our guide to Korea post-registration deadlines covers.
- The pension ceiling. Pension is calculated only up to a monthly income ceiling that resets each July, so high earners pay a capped amount. The examples above stay below it.
- Coverage by nationality. Pension and employment insurance coverage for foreign employees can differ by nationality, visa and reciprocity agreements, so confirm each hire individually.
Your 2027 payroll budget checklist
- Move pension to 5.0% employer and 5.0% employee in your payroll system from the January 2027 payroll.
- Keep health insurance at 3.595% each and expect the long-term care amount to follow the health premium.
- Watch for the long-term care and employment insurance notices and update your budget when they are announced.
- Confirm your industrial accident rate with the Korea Workers’ Compensation and Welfare Service.
- Check offer letters for net-pay promises. Employee deductions rise by 0.25 percentage points too, so a net-pay guarantee costs you more.
- Align the budget year. If your fiscal year differs from the calendar year, see our guide to Korea fiscal year-end for new companies.
For the wider picture of obligations a new Korean employer takes on, read our overview of Korea corporate compliance requirements in year one, and see hiring in Korea without an entity if you have not yet registered a company.
Official sources worth bookmarking
- National Pension Service: contribution rates and the income ceiling
- National Health Insurance Service: health and long-term care rates
- Korea Workers’ Compensation and Welfare Service (COMWEL): employment and industrial accident insurance
- 4 Social Insurance Information Center: one portal for the four insurances
- Ministry of Health and Welfare and Ministry of Employment and Labor: annual rate decisions
- Pearson & Partners Korea insights on taxation and accounting
Frequently asked questions about Korea social insurance in 2027
What is the National Pension rate in Korea in 2027?
10.0% of income, split 5.0% employer and 5.0% employee. That is up from 9.5% in 2026 and rises 0.5 percentage points each January until it reaches 13% in 2033.
What is the Korean health insurance rate for 2027?
7.19%, unchanged from 2026. The Ministry of Health and Welfare froze it on 8 September 2026. Employer and employee each pay 3.595%, with long-term care calculated on top as a share of the health premium.
How much do employers pay in social insurance per employee in Korea?
About 10.2% of pay in 2027 before industrial accident insurance, for an employer with fewer than 150 staff, using 2026 long-term care and employment insurance rates. Industrial accident insurance is employer-only and varies by industry, bringing the typical total to roughly 11% to 12% of pay.
Does the employer pay the whole employment insurance in Korea?
No. The employee pays 0.9%. The employer pays 0.9% for the unemployment benefit plus an employment stabilization add-on of 0.25% to 0.85%, depending on company size.
Are foreign employees covered by Korea’s four social insurances?
Generally yes for registered foreign employees at a Korean workplace, but coverage for pension and employment insurance can differ by nationality, visa and reciprocity agreements. Confirm each hire with the relevant insurer or an adviser.
When will the 2027 long-term care and employment insurance rates be announced?
They had not been announced as of 3 November 2026. Use the 2026 rates as a placeholder, and check the National Health Insurance Service and the Ministry of Employment and Labor for the notices.
Budget Korean payroll without the surprises.
A quiet 0.25 percentage point rise on 1 January touches every salary you pay. Pearson & Partners Korea’s Taxation & Accounting team runs payroll, social insurance enrolment, withholding tax and annual filings for foreign-owned companies, and our Employer of Record service lets you hire in Korea before you have an entity, with every contribution handled for you.
Tell us your headcount and salary bands, and we will build your 2027 Korean payroll budget.
Explore Employer of Record in Korea
Or speak with our Taxation & Accounting team, or reach us through our contact page.
Visit us at WTC Trade Tower, 30F, 511 Yeongdong-daero, Gangnam-gu, Seoul.
This article is provided for general information only and does not constitute tax, legal or HR advice. Contribution rates, income ceilings and company-size brackets are set by statute and government notice and can change; the worked figures are illustrative and rounded. Confirm current rates with the relevant insurer or a qualified adviser before relying on them.
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