In Korea, a wave of digital innovation is sweeping across all areas from online shopping to finance. Korea is thus likely to experience a sharp increase in demand for the following jobs: Technical Sales Representatives, Application Developers, SoC Design Engineers, Data Scientists, Deep Learning and Autonomous System Platform Specialists. (Robert Walters’ 2020 salary guide)
For Professionals working in the tech sector, 29% expect a 1-3% annual salary increment, 38% expect a 4-6% increase while 17% expect a 7-10% increase.
Link to Employer Payroll Tax.
Link to Employee Payroll Tax.
South Korea follows a progressive income tax model. Link to Employee Income Tax.
The minimum wage is 8,950 KRW per hour.
Employees are paid monthly.
13th Month Salary
Not mandatory.
The average full time working hours is 40 hours a week or 8 hours a day.
The maximum working hours is 52 hours a week.
The maximum weekly overtime is 12 hours.
Working after 10 pm is paid 200% of hourly salary, and each additional working hour beyond 40 hours a week or 8 hours a day is paid 150% of hourly salary.
The public holidays can be found here.
No paid leave.
Only sick leave due to work-related injury must be paid by the company.
90 days maternity leave
10 days of paid paternity leave, of which 5 days is paid by the company and the remaining by the government. They may request for unpaid paternity leave of up to 90 days from the day of the child’s birth.
Government-paid parental leave of up to 1 year until the child reaches the age of 8.
Employees are entitled to 70% of monthly salary for 3 months
The termination process is relatively simple.
The termination notice should be in writing and include the reasons for the termination.
Where employment rules provide for a particular process for dismissal (e.g disciplinary committee hearing), if not followed, the termination may be invalid.
30 days advance notice of termination or 30 days pay in lieu of notice. However, notice may not be required if the company is unable to continue business, or the employee has committed intentional misconduct or omission that has a serious implication on the company’s business or operation, or the employee has worked for <3 months.
For full-time employees, the severance pay is equal to 1 month’s salary for each year of employment if they are employed for at least 1 year and have worked for >15 hours per week or >60 hours per month.
Alternatively, with the consent of the employee, the company may set up a retirement pension system.
Not mandatory. However, most organisations offer a maximum of 3 months of probation.
The Worker's Compensation and Welfare Service is in charge of employment insurance. It encourages vocational training and provides financial security while the insured seeks new employment.
Both the employer and the employee are covered by benefits and coverage. In most cases, the employer applies for employment insurance on behalf of their employees, and this must be done within 14 days of the employee's first day on the job. Self-employed people can also apply for employment insurance.
However, there are two exceptions to employment insurance: those over 65 and those working fewer than 15 hours a week (60 hours per month). Employment insurance is not available to foreigners who do not have a foreign registration card.
It is a common practice for companies in South Korea to offer stock options to their employees. Most large-sized companies adopt share plans for their employees via Employee Share Ownership Associations (ESOAs).
Small and mid-sized companies usually give share options as a part of the employees’ compensation under the Special Act on Promotion of a Venture Company of Korea.
South Korea levies a standard rate of 10%
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