📌 Heads up before you read
If you work in Korea, you’ll receive a pay stub every month! But it’s filled with terms you don’t hear in everyday conversations, which can make it a bit confusing. No worries—I’ve got you! Let’s break down the Korean pay stub step by step in this post! 😎
1️⃣ Understanding Korean pay stub
※ pay stub: 급여명세서[geu-byeo-myeong-se-seo]
Standard Format of a Korean Pay Stub
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🙏 The salary amounts listed below are arbitrarily set and differ significantly from actual salaries
Here’s what a Korean pay stub looks like. The words… yeah, they’re pretty tricky, right? No worries—I’ll break it all down for you, step by step!
Oh, and just a heads-up—each company structures its pay stubs differently when it comes to payments (지급[ji-geup]) and deductions (공제[gong-je]). But no matter where you work, some sections are always the same. Today, I’ll focus on the most basic ones for you! 😉
2️⃣ Understanding Payment Sections
The payment section includes all the amounts you receive from the company. Curious about what’s in this part? Let’s take a look!
ⓐ Basic Salary (기본급[gi-bon-geup])
This is the fixed amount stated in your employment contract. It forms the core of your monthly salary and does not include any additional allowances.
ⓑ Meal Allowance (식대[sik-ttae])
A stipend provided to help cover meal expenses. The best part? Meal allowances are tax-free! However, the tax-free limit per person is capped at 200,000 KRW, so the amount allocated for this allowance may vary depending on the company.
ⓒ Bonus (상여금[sang-yeo-geum])
An extra payment given by the company based on performance or specific criteria.
ⓓ Position Allowance (직책수당[jik-chaek-su-dang])
Additional pay awarded based on your job title or role, such as a manager or team leader.
3️⃣ Understanding Deduction Sections
The deduction section shows the amounts subtracted from your salary due to legal or other reasons, such as taxes or insurance.
ⓐ Income Tax (소득세[so-deuk-sse])
A tax imposed by the government on your earned income. It’s also called 갑근세[gap-geun-sse]. Foreigners are required to pay this as well.
ⓑ Local Income Tax (지방소득세[ji-bang-so-deuk-sse])
A local tax calculated as a percentage of your income tax. Also known as 지방세 [ji-bang-sse]. Foreigners must pay this too.
ⓒ Health Insurance (건강보험[geon-gang-bo-hum])
A mandatory social insurance fee that helps cover medical expenses. Enrollment is required if you qualify for residency.
ⓓ Long-Term Care Insurance (장기요양[jang-gi-yo-yang])
An additional social insurance fee to support aging or illnesses. Foreigners are not required to pay this.
ⓔ National Pension (국민연금[gung-min-yeon-geum])
A social insurance fee for retirement planning. Payment depends on reciprocity agreements between Korea and your home country. Check if your country has an agreement to determine whether you need to pay.
💡 Heads-up! The income standard used to calculate national pension fees will change, and starting July 2025, the maximum monthly fee could increase by 18,000 KRW. Keep this in mind when planning your finances!
ⓕ Employment Insurance (고용보험 [go-yong-bo-hum])
A social insurance fee that provides financial support in case of unemployment. Enrollment depends on your visa type.
What do you think? Kind of tricky, but not too bad, right? 😉
This post gave you a general overview, but starting next time, we’ll break down each part in detail. Stay tuned! 🚀
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