How to Read Your Korean Payslip (급여명세서) (2026)

You got paid. Your bank account shows one number. Your payslip shows a different, larger number. This guide explains what happened to the difference, line by line, using 2026 rates.

For context on whether the gross number itself is fair for your role and visa, see the Korea Salary Guide for Foreign Workers.

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What the payslip is, and why you have a right to one

A 급여명세서 (geupyeo myeong-se-seo, payslip or wage statement) is a legally required document. Since November 19, 2021, every Korean employer with one or more employees must issue an itemized written or electronic payslip on or before every payday, under Labor Standards Act Article 48 (as of 2026; verify at elaw.klri.re.kr).

An itemized payslip must show each income component and each deduction separately. A Kakao message with a single transfer amount is a legal violation. An employer who refuses to issue a proper payslip faces a fine of up to 5,000,000 KRW per violation.

Knowing this gives you standing to ask for the document and to read it critically when it arrives.

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Anatomy of the income section (지급)

Korean payslips divide into two columns: income on the left (지급, jigeum) and deductions on the right (공제, gongje). Net take-home (실수령액, sil-suryeong-aek) appears at the bottom.

Here is what each income line means.

기본급 (gibon-geup): Base salary

Your fixed monthly amount as written in your employment contract (근로계약서). This number matters beyond the payslip. Korean law uses 기본급 to calculate:

• Overtime pay (1.5x rate is applied against 통상임금, the broader "ordinary wage" base)
• Severance (퇴직금): one month's average wage per year of service, accrued from 기본급 and regular allowances
• NPS and NHIS contribution bases

If an employer inflates your payslip with one-time allowances while keeping 기본급 low, your severance and pension accrual shrink. A higher base relative to total pay benefits you.

식대 (sikdae): Meal allowance

Typically 100,000-200,000 KRW per month. The first 200,000 KRW per month is non-taxable (비과세, bigwase) under the Income Tax Act, effective January 2023 (raised from 100,000 KRW; as of 2026, verify at nts.go.kr). Non-taxable means this portion does not count toward the income base used to calculate income tax withholding.

If your contract specifies 식대 but it does not appear as a separate line on your payslip, ask HR. Under the November 2021 itemization rules, each component must appear separately. A missing 식대 line often means it has been folded into 기본급, which removes the non-taxable benefit.

교통비 (gyotongbi): Transport allowance

Typically 100,000-200,000 KRW per month covering commuting costs. Partially tax-advantaged but not fully non-taxable like 식대.

직책수당 / 직무수당: Position and role allowances

직책수당 (jikchek sudang) is paid for holding a formal title (팀장, 부장, and similar). 직무수당 (jingmu sudang) is paid for performing a specific function regardless of title. Both are taxable and count toward the income base.

연장근로수당 (yeonjang-geunro sudang): Overtime pay

Pay for hours worked beyond 40 per week. The minimum rate is 1.5 times ordinary wage (통상임금, tongsang imgeum) per Labor Standards Act Article 56. If your overtime hours vary month to month, the calculation basis must appear on the payslip under the November 2021 rules.

Note: 통상임금 is broader than 기본급. It includes regular recurring allowances. Korean labor courts handle frequent disputes over what counts. If your overtime calculation looks low, this is the first thing to check.

야간근로수당 (yagan-geunro sudang): Night work pay

An additional 0.5 times ordinary wage for hours worked between 10 PM and 6 AM. This stacks with overtime: work that is both overtime and night work is paid at 2.0 times ordinary wage.

휴일근로수당 (hyuil-geunro sudang): Holiday work pay

1.5 times ordinary wage for the first 8 hours worked on a designated holiday. Work beyond 8 hours on the same holiday is paid at 2.0 times ordinary wage.

상여금 (sang-yeo-geum): Bonus

May appear monthly at some large Korean companies, or as a lump sum around Chuseok, Lunar New Year, or a company anniversary. Performance bonuses (성과급, seonggwa-geup) typically appear as a separate line.

If your contract states a specific bonus percentage or guaranteed amount but the line never appears, review the contract language. Employer discretion is wide for bonuses described with phrases like "depending on company performance" (회사 경영 상황에 따라). Specific contractual commitments are a different matter.

비과세 항목 (bigwase hangmok): Non-taxable items subtotal

A subtotal showing income components excluded from the taxable base for income tax withholding purposes. The primary component is 식대 up to 200,000 KRW per month. Some welfare payments and specific allowances also qualify.

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Anatomy of the deductions section (공제)

4대보험: The four major social insurances (2026 rates)

Every salaried employee in Korea pays into four mandatory social insurance programs (sadae-boheom, 4대보험). Here are the 2026 employee rates:

As of 2026; verify current rates at nhis.or.kr and nps.or.kr.

The employer pays matching contributions for NPS and NHIS, plus additional employer-only Workers' Compensation premiums. The employer's portion does not appear on your payslip; it is a separate labor cost they pay directly.

For a full explanation of how NHIS enrollment works, see the NHIS Enrollment Guide.

소득세 (sodeukse): Income tax withholding

The amount withheld each month using the NTS simplified withholding table (간이세액표). This is an estimate, not the final tax owed. It is reconciled during the annual year-end tax settlement (연말정산, yeonmal jeongsan) each January to February.

Employees who have not declared dependents will have higher monthly withholding and typically receive a refund at year-end. Employees with dependents or deductions can submit a Dependent Deduction Application (소득공제신청서) to reduce monthly withholding.

지방소득세 (jibang sodeukse): Local income surtax

Always exactly 10% of the 소득세 line above. If income tax withholding is 200,000 KRW, local surtax is 20,000 KRW. No exceptions.

실수령액 (sil-suryeong-aek): Net take-home pay

Gross income minus total deductions. The number that appears in your bank account.

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Worked example: 40,000,000 KRW E-7 professional

Profile: E-7 professional, 40,000,000 KRW annual gross, paid in 12 equal monthly installments. No meal allowance. No overtime. Standard withholding (employee only, no declared dependents).

This example uses the same figures as the Korea Salary Guide for Foreign Workers. Social insurance figures are arithmetically precise at 2026 rates. Income tax figures are approximations; verify with a qualified Korean tax professional before relying on them for financial planning.

The gap between gross and net on a 40,000,000 KRW salary is approximately 16%. Social insurance accounts for roughly 9.7 percentage points of that gap; income tax withholding accounts for the remainder.

What changes with a 200,000 KRW monthly meal allowance: Gross becomes 3,533,333 KRW per month. But only 3,333,333 KRW is used as the 4대보험 base, because 식대 up to 200,000 KRW is non-taxable. Net take-home increases by approximately 200,000 KRW per month compared to this example.

Your actual numbers depend on your salary, dependents, allowances, and whether you elected the flat 19% tax rate. For what similar roles pay at the gross level, see the Korea Salary Guide for Foreign Workers.

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Why your first payslip looks wrong

Five legitimate reasons your first payslip may not match your expectations. All five are normal.

1. Pro-rated first month

If you started mid-month, your first payslip shows: (monthly base / calendar days in the month) x days worked. This is legal and correct. Your second payslip will reflect a full month.

2. Year-end tax settlement recalculation in February

The February or March payslip often shows an unusual deduction (additional tax owed) or credit (refund of over-withheld tax) from the annual year-end tax settlement (연말정산). This is typically the largest single variation you will see across the year. For a full explanation of what to expect, see the Korea Year-End Tax Settlement Guide.

3. Retroactive 4대보험 enrollment billing

Employers are required to enroll new hires in the four social insurances within 14 days of the hire date. When an employer enrolls late, the insurer bills retroactively from the actual start date. The outstanding premiums for the gap period are deducted in a lump sum from a later payslip, sometimes covering 2-3 months at once. You were covered from day one; the billing is simply catching up. See the NHIS Enrollment Guide for enrollment timing details.

4. Default withholding before you submit dependent information

Income tax in the first month defaults to single, no dependents. If you have a non-working spouse, children, or other eligible dependents, your withholding is higher than it needs to be until you submit a Dependent Deduction Application (소득공제신청서) to your employer's payroll team. Ask HR for the form in the first week of employment.

5. NHIS April true-up deduction

NHIS calculates monthly premiums provisionally based on the prior year's income. Each April, NHIS reconciles the provisional amount against actual income from the year-end settlement data. If you earned more than the provisional base projected, a one-time additional deduction appears on the April payslip. If you earned less, the April payslip shows a refund credit instead. Either direction is expected, not an error.

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Common discrepancies to flag

These six situations warrant a question to HR or a closer look at your contract.

1. Meal allowance in contract, missing from payslip

If your 근로계약서 (employment contract) lists 식대, it must appear as a separate line under the November 2021 itemization rules. If it is absent, it may have been folded into 기본급, which removes the non-taxable benefit and reduces your effective take-home. Ask HR in writing to explain the discrepancy.

2. Social insurance base does not match your salary

4대보험 is calculated on 보수월액 (bosu wol-aek), your monthly remuneration base, which is set annually based on prior-year total remuneration. Mid-year, your payslip deductions may not perfectly match your current month's salary. A small discrepancy here is expected and reconciles at the April true-up. A large or persistent discrepancy is worth querying.

3. 퇴직금 appearing as a monthly payslip line

Severance (퇴직금, toejik-geum) is paid when you leave after one year of service. It should not appear as a regular monthly income or deduction line on your payslip. The only exception is if your employer operates a DC-type retirement pension plan (DC형 퇴직연금), in which one-twelfth of the annual severance equivalent is contributed monthly to your Individual Retirement Pension (IRP) account on your behalf. That appears as an employer contribution note, not an employee deduction. A "퇴직금" deduction from your gross pay is never correct. See the Korea Severance Pay Guide for the full legal framework.

4. Promised bonus does not appear

If your contract states a specific bonus percentage or guaranteed amount, and the bonus never appears, this may be a breach of contract. If your contract uses language like "at the company's discretion depending on business conditions," the employer has wide legal latitude. Review your contract language carefully before raising this with HR. For hagwon-specific bonus and contract issues, see the Hagwon Contract Red Flags Guide.

5. Income tax bracket appears wrong

Monthly withholding is based on an estimate. If it looks high or low, check which dependent count your employer is using in the withholding table, and confirm you have submitted your 소득공제신청서. Wrong monthly withholding self-corrects at year-end settlement. Verify proactively at NTS 홈택스 (hometax.go.kr) if you want to see your tax profile mid-year.

6. Flat-rate tax not applied after your election

If you elected the 19% flat rate (단일세율, danil seyul) and the payslip still shows progressive tax rates with standard deductions, your employer may not have processed the election form. Resubmit the election in writing and confirm receipt with payroll. The flat rate should show approximately 19% of your gross taxable income each month with no deductions applied.

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Foreigner-specific situations

Year-end tax settlement: what to expect on your February payslip

All salaried workers in Korea, including foreign workers, participate in 연말정산 each January to February. Your employer collects supporting documents and recalculates your annual income tax. If less tax was owed than was withheld monthly, a refund credit appears on the February payslip (환급, hwangeup). Workers who call this their "13th-month pay" are referring to the same refund. If more was owed than withheld, an additional deduction appears instead.

For the full step-by-step process, see the Korea Year-End Tax Settlement Guide.

Tax treaty exemption for teachers at public schools and universities

Teachers and professors from the United States, United Kingdom, Australia, New Zealand, and South Africa working at Korean public schools or universities may qualify for a 2-year income tax exemption under bilateral tax treaties with Korea. The US basis is the Korea-US Income Tax Convention (Article 21, per IRS.gov).

If eligible, the 소득세 and 지방소득세 lines on your payslip show zero. The exemption does not apply automatically: it must be claimed during year-end tax settlement. This exemption does NOT apply to hagwon (private academy) teachers. Verify treaty article numbers and your eligibility with a qualified Korean tax professional before claiming. Treaty terms for UK, Australian, New Zealand, and South African teachers should be confirmed with a tax professional, as article numbers vary by treaty.

For broader income tax guidance, see the Korea Foreign Resident Tax Guide.

The 19% flat rate option: what it looks like on your payslip

Foreign workers who begin employment in Korea by December 31, 2026 can elect a flat 19% national income tax rate on employment income for a period of 20 years from their first workday (plus a 10% local surtax; total 20.9%). The election forfeits all standard deductions and exemptions.

On the payslip after a valid election: the 소득세 line shows approximately 19% of your gross taxable monthly income. No labor income deduction or personal exemptions apply. The 지방소득세 line shows 10% of that income tax amount.

The flat rate is generally advantageous only above approximately 130,000,000 KRW annual income. Below that level, standard progressive rates with deductions typically result in lower total tax. Confirm your election and its implications with a Korean tax professional.

What the NPS line is building toward

Every month you see a 국민연금 deduction, contributions accumulate in your NPS account. For foreign workers, these can be recovered.

Workers from countries with social security agreements with Korea (including the US, UK, Germany, Canada, Australia, France, Philippines, Vietnam, India, and approximately 29 other countries) can claim a lump-sum refund (반환일시금, banhwan ilsigeum) when leaving Korea permanently (as of 2026; verify the current country list at nps.or.kr). E-9, E-8, and H-2 holders can claim a refund regardless of their home country's agreement status.

Additionally, workers from social security agreement countries who remain covered under their home country's pension system may apply for an exemption from Korean NPS contributions with a certificate of coverage. If exempt, the 국민연금 line on your payslip shows zero.

When you are ready to leave Korea, the Korea Pension Refund Guide covers the full refund application process.

4대보험 enrollment timing

Your employer must enroll you in all four social insurances within 14 days of your hire date. If they enroll late, your coverage was still effective from day one. The only consequence for you is that retroactive premiums for the enrollment gap period will appear as a lump-sum deduction on a later payslip. This can look alarming. It is not a penalty against you: it is simply the catchup billing for your share of premiums during the gap period.

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What to do if your payslip is wrong

Step 1: Ask HR for a written explanation

Request a line-by-line breakdown in writing (email is sufficient). Frame it as a factual question, not an accusation: "The 식대 line appears missing. My contract specifies 200,000 KRW per month. Can you confirm how this is being processed?" Keep the response.

Give HR one full pay cycle to investigate and respond.

Step 2: Contact MOEL at 1350

If the issue is unresolved after one pay cycle, contact the Ministry of Employment and Labor (MOEL). The 1350 hotline operates from within Korea and offers multilingual labor counseling. The Counseling Center for Foreign Workers operates a separate hotline at 1577-0071 with support in 16 languages including Vietnamese, Chinese, Filipino, and Russian. You can also file a complaint online at minwon.moel.go.kr.

MOEL investigates within approximately 25 days. Penalties for confirmed wage violations include fines up to 30,000,000 KRW and up to 3 years imprisonment for employers. Workers whose final 3-month average wage was under 4,000,000 KRW may receive free legal assistance from Korea Legal Aid Corporation (대한법률구조공단, kola.or.kr).

The scale of the problem is documented: 14,913 foreign workers across 4,124 businesses had wages stolen between January and July 2024, totaling approximately 70 billion KRW (Business and Human Rights Resource Centre / MOEL, 2024). Reading your payslip monthly is the first line of defense.

Step 3: Korea Labor Relations Commission

For unpaid wage claims or unfair labor practice disputes that MOEL does not fully resolve, file with the Regional Labor Relations Commission (지방노동위원회) at nlrc.go.kr. This is the formal adjudication body for labor disputes.

For E-9 workers in manufacturing and industrial settings, the E-9 Worker Rights Guide covers the full range of protections and complaint pathways.

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Pay cycle and timing rules

When your employer must pay you: Article 43

Under Labor Standards Act Article 43, wages must be paid: at least once per month, on a fixed date, in full, in Korean won. Payment by bank transfer or cash both satisfy the law. Common paydays in Korea are the 21st, 25th, or last business day of the current month, or the 5th or 10th of the following month (as of 2026; verify at elaw.klri.re.kr).

When your employer must issue the payslip: Article 48

The itemized payslip must be provided on or before the payday, in written or electronic form. Email delivery and payroll portal access both satisfy the requirement. Penalty for non-issuance: up to 5,000,000 KRW per violation (as of 2026; verify at elaw.klri.re.kr).

How long records must be kept

Employers must retain wage ledgers (임금대장, imgeum daejang) for 3 years under the Labor Standards Act. This is the same window you have to file unpaid wage claims. If you suspect wage theft from a job that ended up to 3 years ago, you can still file (as of 2026; verify Article 42 at elaw.klri.re.kr).

The 52-hour weekly cap

Korea's maximum working week is 52 hours: 40 standard hours plus a maximum of 12 overtime hours. Any hours beyond 40 in a week must be compensated at 1.5x ordinary wage and appear as 연장근로수당 on your payslip. If you regularly work more than 40 hours per week and see no overtime line, your contract may contain a comprehensive wage agreement (포괄임금제, pogwal imgeum-je) that embeds overtime in a fixed monthly amount. These agreements are legal in limited circumstances. If you are unsure whether yours applies correctly, contact MOEL at 1350.

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FAQ

What is a 급여명세서 and is my employer required to give me one? A 급여명세서 (geupyeo myeong-se-seo) is an itemized payslip showing every income component and every deduction. Since November 19, 2021, Korean employers with one or more employees must issue one on or before every payday under Labor Standards Act Article 48. A bank transfer with a single total number does not satisfy this requirement. Employers who fail to issue an itemized payslip face fines of up to 5,000,000 KRW per violation.

What is the difference between 지급 and 공제 on my payslip? 지급 (jigeum) is the income section listing everything you earned: base salary, allowances, overtime, and bonuses. 공제 (gongje) is the deductions section listing everything subtracted: social insurance premiums, income tax, and local surtax. The difference between the two totals is your 실수령액 (sil-suryeong-aek), the amount that lands in your bank account.

What are the 4대보험 deduction rates in 2026? The 2026 employee rates are: National Pension (국민연금) 4.75%, National Health Insurance (건강보험) 3.595%, long-term care insurance (장기요양보험) approximately 0.47% (13.14% of the NHIS premium), and employment insurance (고용보험) 0.9%. Workers' compensation (산업재해보상보험) is paid entirely by the employer. Total employee social insurance deduction is roughly 9.7% of gross salary (as of 2026; verify at nhis.or.kr and nps.or.kr).

Why does my first payslip look wrong? Five legitimate reasons: (1) Pro-rated first month if you started mid-month. (2) Year-end tax settlement recalculation appearing in February or March. (3) Retroactive 4대보험 enrollment billing if your employer enrolled late. (4) Default income tax withholding set too high until you submit your dependent information. (5) An NHIS April true-up deduction if last year's income was higher than the provisional base. All five are normal and correctable.

Can I get my NPS contributions back when I leave Korea? Many foreign workers can apply for a lump-sum NPS refund (반환일시금, banhwan ilsigeum) when leaving Korea. Eligibility depends on whether your home country has a social security agreement with Korea. Workers from the US, UK, Germany, Canada, Australia, France, Philippines, Vietnam, India, and roughly 29 other countries are eligible. E-9, E-8, and H-2 holders can claim a refund regardless of their home country's agreement status. See the Korea Pension Refund Guide for the full process.

What is the 19% flat tax rate and does it apply to me? Foreign workers who begin employment in Korea by December 31, 2026 can elect a flat 19% national income tax rate plus 10% local surtax (total 20.9%). This forfeits all standard deductions. It is generally advantageous only at incomes above approximately 130,000,000 KRW per year. If you elected the flat rate, the 소득세 line on your payslip should show approximately 19% of your gross taxable income each month. Confirm your election was processed with your employer's payroll team.

What should I do if a payslip line looks wrong? First, ask HR in writing for a line-by-line breakdown and keep the response. If unresolved after one pay cycle, call MOEL at 1350 (from within Korea, multilingual service available) or file online at minwon.moel.go.kr. MOEL investigates within 25 days and can impose penalties up to 30,000,000 KRW on employers. For unpaid wages where your final 3-month average wage was under 4,000,000 KRW, Korea Legal Aid Corporation provides free legal assistance.

What does it mean if there is no 연장근로수당 line on my payslip but I worked more than 40 hours? It may mean your employer is using a comprehensive wage agreement (포괄임금제, pogwal imgeum-je), which embeds overtime in a fixed monthly wage. These agreements are legal in limited circumstances but are frequently misused. If you regularly work more than 40 hours per week and see no overtime line, review your employment contract for 포괄임금제 language and consider contacting MOEL at 1350.

Do teachers from the US, UK, or Australia pay income tax in Korea? Teachers from the US, UK, Australia, New Zealand, and South Africa working at Korean public schools or universities may qualify for a 2-year income tax exemption under bilateral tax treaties with Korea. This exemption does NOT apply to hagwon teachers. It must be claimed during year-end tax settlement (연말정산) and is not applied automatically. Verify eligibility with a Korean tax professional before claiming.

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Still reviewing your offer? The Korea Salary Guide for Foreign Workers helps you check whether the gross number is fair for your role and visa before you sign.

Last verified May 2026. 4대보험 rates, income tax brackets, and social insurance rules are subject to annual review. Verify current rates at nhis.or.kr, nps.or.kr, and nts.go.kr before making financial decisions. Income tax figures in the worked example are approximations; consult a qualified Korean tax professional for your specific situation.