Employer of record in South Korea: costs and rules

We may earn a commission when you sign up through some links on this page. Commissions never change our scores or the order of our lists. How we make money.

Employing someone in South Korea through an employer of record adds 18.30% to a KRW 56,000,000 salary: 9.97% in statutory insurances, led by the 4.75% National Pension share, plus an 8.33% retirement allowance accrual, before industrial accident insurance; provider fees come on top, from a listed $199 per head monthly at Payoneer Workforce Management (formerly Skuad) to Oyster's $699 (October 2026). The item American budgets most often drop is that retirement allowance: it is required by law (Labor Standards Act art. 34), and a quote that shows only the four insurances leaves out KRW 4,664,800 a year at this salary.

An employer of record in South Korea is a Korean entity that employs your hire on paper, enrolls them in the four social insurances, pays the employer share and the retirement allowance, and leaves you in charge of the work.

Employer cost on a sample salary
9.97% statutory insurances…on top of gross pay
Minimum annual leave
15 days for a year with at…
Currency
KRW
On this page

How Korean employment differs from US hiring

The pension rate went up in January 2026. The National Pension is now 9.5% of pay, split 4.75% each, and it rises half a point a year toward 13%. Pages written before 2026 still show 9% (4.5% employer). The income base runs from KRW 410,000 to KRW 6,590,000 a month from July 1, 2026 (KRW 400,000 to 6,370,000 before that), so a salary above the top of that band pays pension on the ceiling only.

Health insurance is 7.19%, split evenly, and long-term care adds 13.14% of the health premium. Employment insurance costs the employer 0.9% plus a job stability and skills charge of 0.25% to 0.85% depending on firm size. Because the EOR's Korean company is the employer, ask which band it pays: at 0.85% the sample below rises by KRW 336,000 a year.

Leave builds with attendance. Under Labor Standards Act art. 60 a worker gets 1 day per month in the first year, 15 days after a year with at least 80% attendance, then 1 more day every 2 years after 3 years, up to 25. Presidential Decree public holidays are paid (art. 55(2)), a rule extended to workplaces with 5 to 29 employees in 2022, on top of a paid weekly holiday (art. 55(1)).

The minimum wage is KRW 10,320 an hour in 2026 and is set at KRW 10,700 for 2027. There is no statutory bonus. We have not confirmed a statutory probation limit, payroll frequency or standard week from an official source.

Employment costs and rules in South Korea

Employing someone in South Korea: the rules and costs
ItemSouth Korea
Employer social contributionsAbout 9.97% plus industrial accident insurance (varies by industry), plus 8.33% retirement allowance accrual
What the employer paysNational Pension 4.75% (9.5% total from Jan 2026); health insurance 3.595% (7.19% total); long-term care 13.14% of the health premium (about 0.472% of pay); employment insurance 0.9% plus job stability and skills development 0.25% to 0.85% by firm size; industrial accident insurance employer only, rate by industry
Caps and ceilingsNational Pension income base KRW 400,000 to 6,370,000 a month until June 2026; KRW 410,000 to 6,590,000 from 1 July 2026. Health insurance cap not checked
Employee contributionsAbout 9.72% (pension 4.75, health 3.595, care about 0.472, employment insurance 0.9)
Minimum wageKRW 10,320 an hour (2026); KRW 10,700 an hour set for 2027
Mandatory bonusesNone statutory
Annual leave15 days for a year with at least 80% attendance; 1 day per month worked in the first year (or under 80% attendance); +1 day per 2 years after 3 years of continuous service, capped at 25 (Labor Standards Act art. 60)
Public holidaysPublic holidays set by Presidential Decree are paid holidays (LSA art. 55(2)), in force for workplaces with 5 to 29 employees since 2022; plus 1 paid weekly holiday (art. 55(1)). Number of days not confirmed today
Notice periodEmployer: at least 30 days' notice of dismissal or 30 days' ordinary wages in lieu (LSA art. 26); exception includes employees with under 3 months' continuous service
SeveranceRetirement allowance required under the Act on the Guarantee of Employees' Retirement Benefits (LSA art. 34); amount (believed at least 30 days' average wages per year of service, after 1 year) not confirmed today
Sample salary usedKRW 56,000,000 a year (KRW 4,666,667 a month)
Employer cost on that salary9.97% statutory insurances (18.30% with retirement allowance accrual), excluding industrial accident insurance

Checked October 16, 2026. Source type: secondary. Sources are listed at the end of this page.

What an EOR charges to employ someone in South Korea

What EOR providers charge (published list prices)
ProviderEOR fee per employee per monthDepositEntity model (provider claim)
Payoneer Workforce Managementfrom $199None listedClaims owned entities across APAC, MEA, Europe and the Americas
Pebl$399Not listedAbout 90% of employees on Pebl-owned entities
Playrollfrom $399One month's salary per employee, refundableNo clear owned-entity claim
Rivermate$319 to $639Not statedClaims 38 owned entities
Multiplier$459 (annual) or $499 (monthly)Sized from costs, fees and notice period (method published, no fixed amount)Claims owned entities in 160+ countries
Rippling EORQuote only (third-party reference: $499)Not listedClaims Rippling entities; no partner mention
Deel$599Not stated by DeelClaims owned entities in 130+ countries
Remotefrom $599Waived for startups; otherwise not statedClaims 100% owned entities in 90+ countries
Atlasfrom $599Not publishedClaims owned entities in 160+ countries
Papaya Globalfrom $650Refundable deposit, amount not statedUses in-country partners
Oyster$699At least one month of total service cost, refundable (per its terms)Owned entities and partners
Globalization Partners (G-P)Quote onlyNot statedInformation page claims 100+ wholly owned entities

Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.

KRW 56 million salary: the full employer bill

Employer cost of a KRW 56,000,000 salary in South Korea, 2026
LineEmployer ratePer year (KRW)
Gross salary56,000,000
National Pension4.75%2,660,000
National Health Insurance3.595%2,013,200
Long-term care13.14% of the health premium264,534
Employment insurance0.9%504,000
Job stability and skills development0.25% (lowest firm-size band)140,000
Statutory insurances9.97%5,581,734
Retirement allowance accrual8.33%4,664,800
Employer cost before accident insurance18.30%10,246,534
Salary plus employer cost66,246,534
EOR fee at $599 a monthkept in USD$7,188

Math: long-term care 2,013,200 x 13.14% = 264,534; insurances 2,660,000 + 2,013,200 + 264,534 + 504,000 + 140,000 = 5,581,734; plus 4,664,800 = 10,246,534. Industrial accident insurance is extra and depends on the industry. Sources: our countries data (secondary sources for the rates; Labor Standards Act translation by the Korea Legislation Research Institute); EOR fee from Deel and Remote pricing pages. Checked Oct 2026.

The 18.30% figure uses the lowest job-stability band and excludes industrial accident insurance, which the employer alone pays at a rate set by industry. The health insurance cap was not checked. Try other pay levels in the employee cost calculator for other countries, or see where Korea sits in the country-by-country EOR cost index.

Ending employment in Korea

An employer must give at least 30 days' notice of dismissal or pay 30 days' ordinary wages instead (LSA art. 26); the rule does not apply to employees with under 3 months of continuous service. The retirement allowance is due under the Act on the Guarantee of Employees' Retirement Benefits (LSA art. 34). Our sample accrues it at 8.33% of pay, one month a year; we have not yet confirmed the exact statutory formula from the official text, so ask the EOR how it accrues and invoices it.

Picking a provider for Korea

Multiplier scores 79 and Oyster 64 on our published scoring method. Multiplier charges $459 a month billed annually or $499 monthly and says it uses owned entities, though about 11% of countries carry adjusted pricing, so get the Korea price in writing. Oyster charges a flat $699 and holds a deposit of at least one month of total service cost. Remote (62) and Deel (54) list $599. Our ranked list of EOR providers has the full scores, and the Remote, Deel and Oyster reviews cover their contracts and complaints.

Running your own Korean entity instead

Each EOR hire costs $7,188 a year in fees at $599 a month. A Korean subsidiary replaces that with incorporation, a local payroll provider and your own insurance registrations. Our entity versus EOR comparison sets out when the switch pays off.

Freelancers and contractors in Korea

A contractor arrangement avoids the four insurances and the retirement allowance, which is exactly what makes it risky when the person works full time under your direction. If it is reclassified, the unpaid allowance and insurance shares are the exposure. Use a contractor platform for real freelancers, or a contractor of record if you want someone else to carry the classification risk.

Frequently asked questions

How much does it cost to employ someone in South Korea?
On a KRW 56,000,000 salary the employer pays 9.97% in National Pension, health, long-term care and employment insurance (KRW 5,581,734) plus an 8.33% retirement allowance accrual (KRW 4,664,800), 18.30% in all before industrial accident insurance. EOR fees add $199 to $699 a month (checked October 2026).
What is the National Pension rate in South Korea in 2026?
9.5% of monthly income, 4.75% from the employer and 4.75% from the employee, up from 9% in 2025. From July 1, 2026 the monthly income base is KRW 410,000 to KRW 6,590,000.
What notice does a Korean employer have to give?
At least 30 days' notice of dismissal, or 30 days' ordinary wages in lieu, under Labor Standards Act art. 26. Employees with under 3 months of continuous service are an exception.
What is the minimum wage in South Korea?
KRW 10,320 an hour in 2026. The rate set for 2027 is KRW 10,700 an hour.
How many days of annual leave do Korean employees get?
Under Labor Standards Act art. 60: 1 day per month worked in the first year, 15 days after a year with at least 80% attendance, and 1 extra day for every 2 years after 3 years of service, capped at 25 days.
Sources (8)
  1. Payoneer Workforce Management (formerly Skuad): Skuad pricing page (checked Oct 16, 2026)
  2. Pebl: Pebl EOR pricing page (checked Oct 16, 2026)
  3. Playroll: Playroll pricing page (checked Oct 16, 2026)
  4. Multiplier: Multiplier pricing page (checked Oct 16, 2026)
  5. Oyster: Oyster pricing page (checked Oct 16, 2026)
  6. Deel: Deel pricing page (checked Oct 16, 2026)
  7. Remote: Remote pricing page (checked Oct 16, 2026)
  8. elaw.klri.re.kr/eng_service/lawViewContent.do?hseq=75092 (checked October 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.

Checked Oct 17See Multiplier pricing on Multiplier’s site