South Korea is home to millions of skillful, brilliant workers across industries like electronics, automobile production, chemicals, and much more. Adding one or more of these bright minds to your team could be a boon like none other for your growing business. Plus, hiring from South Korea is typically very affordable, and the country is welcoming to foreign businesses looking for skilled talent. 

Businesses all over the world look to South Korea to fill employment gaps or bolster profitability. But that doesn’t mean that the hiring process is a walk in the park. Too often, employers find themselves in legal trouble or struggle to attract the right South Korean candidates. But if you are intentional when building your employee benefits plan, you can bypass this issue and quickly find the right people. 

In this employee benefits guide, we’ll tell you everything you need to know about employee benefits in South Korea. We’ll start with where to find South Korea labor laws, then we’ll touch on both mandatory and supplementary benefits. Then, to tie everything together, we’ll share some practical tips to keep in mind as you build your employee benefits plan for prospective employees. 

Where to Find Employee Benefit Information for South Koreans

Unlike some countries, South Korea publishes legal resources in English for international employers who speak the language. On the country’s Ministry of Employment and Labor (MOEL) website, you can find simple explanations of South Korea labor laws. This page covers topics like: 

  • Employment practice improvement 
  • Working conditions and labor inspection
  • Labor welfare

Though you’ll find some very helpful information above, there’s no better source of truth than the Labor Standards Act. It governs the relationships domestic and international employers should have with their employees.

The English translation of the Labor Standards Act isn’t considered official by South Korean authorities – only the Korean version is. 

Mandatory Employee Benefits in South Korea

The South Korean employment law lists many mandatory benefits that employers must provide to their employees. We’ll cover each of them below: 

National Pension

South Korea has a National Pension (NP) scheme mandated by the government. The total mandatory contribution amount is 9% of the employee’s salary, and the employer and employee split that obligation down the middle. So, the employee pays 4.5% and the employer pays 4.5%.

The retirement age for South Koreans is 60, though it may be as high as 65 for some government organizations. Also, many people retire voluntarily before reaching these ages.

You can learn more about pensions on this National Pension Service contributions page. 

Employment Insurance

The South Korean Employment Insurance Act governs assistance that workers may receive if they are fired from their jobs. Contributing to the employment insurance fund is mandatory for employees, and both workers and their employers have to contribute to it. Per the Employment Insurance Scheme of Korea, the contribution total is 1.6% of the employee’s salary. 

Workers’ Compensation Insurance

When you hire a South Korean employee, you’re obligated to sign them up for workers’ compensation insurance. That way, they can receive medical cost assistance and other forms of help as they strive to get well. On average, employers have to contribute around 0.5% to 2% of their employee’s salary to workers’ compensation. The actual percentage depends on the details of the working arrangement. 

Health Insurance

Employers and employees are legally required to make regular contributions to South Korea’s National Health Insurance Program. The total contribution amount will vary based on the employee’s status and salary. However, it averages about 5% of the employee’s salary. The employer should withhold half of that percentage (2.5%) from the employee’s salary and contribute an additional 2.5% themselves.

Severance Pay

In South Korea, workers are eligible to receive severance pay equal to one month of pay for every year of employment. There is a one-year waiting period for this benefit. Severance pay should be paid when the employee is terminated from the position.

You can learn more about severance pay in this legal resource.

Employees are due 11 days of annual leave throughout their first year of work. After reaching that one-year work milestone, they get four more days, bringing the total up to 15 days. 

Public Holidays

South Koreans get public holidays off with full pay. Here are the public holidays recognized in the country: 

  • New Year’s Day (January 1) (date varies)
  • Seollal / Lunar New Year (February 9–12)
  • Independence Movement Day (March 1)
  • National Assembly Election Day (April 10) (date varies)
  • Children’s Day (May 6)
  • Buddha’s Birthday (May 15) (date varies)
  • Memorial Day (June 6)
  • Liberation Day (August 15)
  • Chuseok (15th day of the 8th lunar month) (date varies)
  • Armed Forces Day (October 1)
  • National Foundation Day (October 3)
  • Hangeul Day (October 9)
  • Christmas Day (December 25)

Some of these holidays may not be statutory in certain South Korean provinces. To get an official list of public holidays, go to the local government website for your candidate’s local province. 

Maternity and Paternity Leave

Per South Korean law, women who are pregnant are entitled to 90 days of maternity leave before and after having the baby. At least half of the leave should be taken after the birth of the baby. The leave amount may be extended in the case of birth complications.

As for remuneration, the employer is legally required to pay the employee for the first 60 days of leave for uneventful births. The remaining 30 days will be paid by the government. If there are complications or other issues throughout the pregnancy, the employer will have to pay the employee for the first 75 days of their maternity leave.

Miscarriages and stillbirths are treated differently, with shorter leave times. 

Paternity leave is less substantial – males awaiting the arrival of a child are legally entitled to 10 days off. This leave allowance should be taken within 90 days of the child’s birth. The employee should receive their full earnings for all 10 days.

Type of Leave
Leave Length
Leave Payment
Maternity Leave (uneventful)
90 days
100% of regular wage. 60 days paid by employer, remaining 30 days paid by government.
Maternity Leave (Miscarriage/Stillbirth)
5 – 90 days
100% of regular wage. Employer pays first 60 days, remaining days paid by government.
Paternity Leave
10 days
100% of regular wage paid by employer.

Minimum Wage

According to the Minimum Wage Commission Republic of Korea, the minimum wage for 2026 is 10,320 won (7.51 USD) per hour, 82,560 won per day, and 2,156,880 won ($1,563.45 USD) per month. Ensure you’ve got enough room in your budget to support these wage minimums. 

Standard Work Hours and Overtime

The standard work hour maximum for South Koreans is 40 hours plus 12 hours of overtime per week. Every hour of overtime should be paid at 150% of the regular wage. 

Supplementary Employee Benefits in South Korea

South Korean mandatory benefits are wide-ranging and cover many bases, but they aren’t all-encompassing. That’s where supplementary employee benefits come in. You can offer more than what the law mandates and the benefits you choose can make a world of difference in your hiring goals and your future hires’ lives. Here are a few to consider: 

  • Sick leave benefits, since the country doesn’t mandate sick leave for employees. 
  • Private health insurance to supplement national health coverage and expand your workers’ access to healthcare. 
  • Flexibility in work hours and locations (work from home, multiple work sites, flex time). 
  • Stipend for home offices to allow remote workers to make their workspace their own. 
  • Fitness memberships, mental health app subscriptions, or free mental health services for wellness. 
  • Free or reduced childcare assistance. On-site daycare is also in demand.
  • Educational opportunities in the employee’s field of interest. 
  • Extra paid time off or leave – extended paternity leave, for example. 

Tips for How to Build an Employee Benefits Plan for South Korean Employees

Building your employee benefits plan for South Korean employees will take a concerted effort and a plan. Start with the mandatory benefits we outlined above and explore the actual law text for more information. Though the information above is helpful in a fundamental sense, the law goes into much more detail on the regulations governing the employer/employee relationship. An international lawyer can help decipher South Korea labor laws, making the process easier for you. Once you’re up to speed on the labor laws, outline the mandatory benefits in your benefits package. 

Choose the voluntary benefits you believe will be helpful for your future South Korean employees. Start by considering the ones that we mentioned above. If you’re unsure which benefits would resonate most with these workers, do some research on local South Korean trends and cultural preferences. Compile and spell out all of the supplementary benefits. 

With the benefits package complete, feel free to distribute the document and/or communicate benefit information in:

  • Job descriptions
  • Interviews
  • The onboarding process 

So, there you have it – everything you need to know about employee benefits in South Korea. We hope you found all the information you were looking for, and we wish you the best as you bolster your team with South Korean talent.