* Based on 209 hours per month
This is an estimate using the July 2026 pension income limits and general contribution assumptions. Withholding tables, company deductions, bonuses, and year-end adjustments can change the actual payslip.
How is Net Salary Calculated?
Your net salary (actual take-home pay) is calculated by subtracting 4 Major Insurances and Income Tax from your gross salary.
- Non-taxable Income: Common items like meal allowances (up to 200,000 KRW/month) are excluded from the insurance and tax calculation base.
1. The 4 Major Social Insurances (2026)
Social insurance is a mandatory safety net system intended to guarantee the stability and welfare of individuals and households.
| Insurance Type | Employee Rate | Employer Rate | Notes |
|---|---|---|---|
| National Pension | 4.75% | 4.75% | Updated for 2026 |
| Health Insurance | 3.595% | 3.595% | Updated for 2026 |
| Long-term Care | 13.14% | 13.14% | % of Health Insurance premium |
| Employment Insurance | 0.9% | 0.9% | Unemployment benefits portion |
National Pension
A state-managed system to guarantee income in old age, disability, or death. For 2026, the rate is 9.5% (4.75% each from employee and employer).
Health Insurance
Prevents excessive financial burden from treatment fees for illness or injury. The 2026 employee rate is 3.595% of gross pay.
Long-term Care
Supports those with mobility issues due to aging or geriatric diseases. Calculated by multiplying the Health Insurance premium by 13.14%.
Employment Insurance
Aims for unemployment prevention, employment promotion, and job stability. Employees pay 0.9% toward unemployment benefits.
2. Income Tax Calculation (2026)
Income tax is calculated based on Taxable Income after applying various deductions.
A. Earned Income Deduction
| Annual Gross Salary | Deduction Formula |
|---|---|
| ≤ 5M | 70% of Gross |
| 5M ~ 15M | 3.5M + 40% of excess over 5M |
| 15M ~ 45M | 7.5M + 15% of excess over 15M |
| 45M ~ 100M | 12M + 5% of excess over 45M |
| > 100M | 14.75M + 2% of excess over 100M |
B. Basic Personal Deduction
A standard deduction of 1.5M KRW per person (self and dependents) is subtracted from your income.
C. Income Tax Rates (2026)
| Taxable Income (Year) | Rate | Base Deduction |
|---|---|---|
| ≤ 14M | 6% | - |
| 14M ~ 50M | 15% | 1.26M |
| 50M ~ 88M | 24% | 5.76M |
| 88M ~ 150M | 35% | 15.44M |
| > 150M | 38% ~ 45% | Higher brackets apply |
* Earned Income Tax Credit: An additional credit (55%~30%) is applied to the calculated tax.
* Local Income Tax: An additional 10% of the calculated Income Tax is charged.
3. Minimum Wage Trend & Standard
The minimum wage for 2026 has been finalized at 10,320 KRW per hour.
(40 regular hrs + 8 holiday hrs) × (365 days / 7 days / 12 months) ≈ 209 hoursHow to Interpret Net Salary Results
Monthly take-home pay is gross pay minus national pension, health insurance, long-term care insurance, employment insurance, income tax and local income tax. Non-taxable items such as meal allowance are excluded from the base.
Worked example: Annual salary KRW 40 million with a KRW 200,000 monthly meal allowance
- Monthly pay: 40M ÷ 12 ≈ 3,333,000; taxable base after the meal allowance ≈ 3,133,000
- National pension 4.75% ≈ 148,830; health insurance 3.595% ≈ 112,640
- Long-term care (13.14% of health insurance) ≈ 14,800; employment insurance 0.9% ≈ 28,200
- Total social insurance ≈ 304,470
Income tax, which depends on the number of dependents, plus local income tax (10% of income tax) is then deducted. Enter your real number of dependents for a result close to your payslip.
Before you rely on the result
- Check whether severance pay is included in the salary.
- Separate how bonuses are paid.
- Enter dependents according to deduction rules.
- Tax and insurance rates can change. Confirm with your payslip and payroll policy.
Frequently asked questions
Why does the calculator differ from my payslip?
Bonuses, meal allowance, year-end tax settlement, company deductions and insurance adjustments can differ.