South Korea flag

South Korea

Employing and managing employees in South Korea involves following specific procedures and regulations.

Here's what you need to know

    • Type of Contract:
      The most common types of employment contracts in South Korea are indefinite and fixed-term contracts
    • Contract Requirements:
      Employment contracts in South Korea must be in writing and include specific terms, such as job description, salary, working hours, and duration of the contract.
  • Probationary Period:
    Employers are allowed to include a probationary period in employment contracts. The maximum length of the probationary period is 3 months for all employees.
    • Minimum Wage:
      The minimum wage in South Korea is set by the government and is currently KRW 9,160 per hour.
    • Social Security Contributions:
      Employers are required to contribute to the National Pension Service (NPS) and the National Health Insurance (NHI) for their employees. The contribution rates vary by salary and are calculated as a percentage of the employee's salary.
  • Income Tax:
    Employees in South Korea are subject to income tax. The amount of tax depends on the employee's salary and other factors.
    • Work Permits:
      Foreign workers in South Korea require a valid work permit to be employed legally. Employers must apply for the work permit on behalf of the employee, and must meet specific eligibility criteria before the work permit can be approved.
    • Leave Entitlements:
      Employees in South Korea are entitled to various types of leave, such as annual leave, sick leave, and maternity leave. The number of days and eligibility criteria for each type of leave varies by employee's length of service and nature of employment.
  • Termination of Employment:
    Employment contracts in South Korea may be terminated by either the employer or the employee. Employers must provide written notice to employees before terminating their employment, and comply with specific requirements for severance pay.
When it comes to employing workers in South Korea, adhering to specific regulations and procedures is essential. However, teaming up with a local expert in employment and payroll can simplify the process and ensure that you’re meeting all the necessary legal requirements while fostering a supportive work environment for your employees.

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