Introduction
South Korea is one of Asia’s leading economies, recognised for its highly educated workforce, advanced infrastructure and innovation-driven industries. As businesses expand into the Korean market, understanding local employment laws and statutory obligations is essential to ensuring compliance and building a successful workforce.
This guide provides an overview of South Korea’s employment regulations, including employment contracts, working hours, statutory leave, payroll obligations, social security contributions, termination requirements and employer responsibilities. Whether you are hiring your first employee or expanding an existing team, understanding these requirements will help you navigate the employment landscape with confidence.
Country at a Glance
| Item | Details |
|---|---|
| Capital | Seoul |
| Currency | South Korean Won (KRW) |
| Official Language | Korean |
| Standard Working Hours | 40 hours per week |
| Payroll Frequency | Monthly |
| Minimum Wage (Current) | KRW 10,320/hour (Effective 1 January 2026) |
| Employer of Record (EOR) | Available, subject to applicable South Korean employment regulations |
Employment Contracts
Written Employment Terms
Although employment contracts may be entered into verbally under Korean law, employers are legally required to provide employees with a written statement of key employment terms. This promotes transparency and helps minimise employment disputes.
A written employment contract should generally include:
- Employer and employee details
- Job title and responsibilities
- Place of work
- Employment commencement date
- Working hours
- Salary and payment schedule
- Annual leave entitlement
- Other statutory employment conditions
Employers are encouraged to maintain comprehensive written employment agreements that comply with the Labour Standards Act.
Probation Period
South Korean employment law does not prescribe a mandatory probation period.
Employers may implement a probation period depending on the position and employment arrangements. Employees on probation remain entitled to applicable statutory employment protections, including relevant dismissal requirements.
Fixed-Term Employment
Fixed-term employment contracts are permitted. However, employees continuously employed under fixed-term contracts for more than two years are generally deemed to be employed on an indefinite-term basis unless a statutory exception applies under the Act on the Protection of Fixed-Term and Part-Time Employees.
Working Hours
The standard working hours under the Labour Standards Act are:
- Maximum 8 hours per day
- Maximum 40 hours per week
These limits exclude statutory rest periods.
For workplaces with five or more regular employees, overtime work is generally limited to an additional 12 hours per week by agreement, unless otherwise permitted by law.
Employers should maintain accurate records of employees’ working hours to demonstrate compliance.
Rest Periods
Employees are entitled to statutory rest breaks during the working day.
| Working Time | Minimum Rest Period |
|---|---|
| 4 hours of work | 30 minutes |
| 8 hours of work | 1 hour |
Rest periods should generally be provided during working hours and allow employees to use the time freely.
Weekly Rest Day
Employees are generally entitled to at least one paid weekly rest day, subject to applicable attendance, working-hours and other statutory eligibility requirements.
Overtime, Night Work and Holiday Work
Employees who perform qualifying overtime, night work or holiday work are generally entitled to premium pay in accordance with the Labour Standards Act.
For covered workplaces, the statutory premium rates generally include:
| Type of Work | Additional Payment |
| Overtime work | At least 50% of ordinary wages |
| Night work (10 pm to 6 am) | At least 50% of ordinary wages |
| Holiday work up to 8 hours | At least 50% of ordinary wages |
| Holiday work exceeding 8 hours | At least 100% of ordinary wages |
Applicable premiums may be cumulative where different categories of work overlap. These premium-pay provisions generally apply to workplaces with five or more regular employees.
Employers should ensure overtime arrangements comply with statutory limits and obtain the necessary agreements where required.
Minimum Wage
South Korea’s national minimum wage is reviewed annually by the Minimum Wage Commission.
Current Minimum Wage (Effective 1 January 2026)
| Item | Amount |
|---|---|
| Hourly Wage | KRW 10,320 |
| Daily Wage (8 hours) | KRW 82,560 |
| Monthly Equivalent (209 hours) | KRW 2,156,880 |
Confirmed Minimum Wage (Effective 1 January 2027)
The Ministry of Employment and Labour has confirmed that the statutory minimum wage will increase by approximately 3.7% from 1 January 2027.
| Item | Amount |
|---|---|
| Hourly Wage | KRW 10,700 |
| Daily Wage (8 hours) | KRW 85,600 |
| Monthly Equivalent (209 hours) | KRW 2,236,300 |
The monthly equivalents are based on a standard 40-hour workweek and 209 paid hours per month, including paid weekly rest hours.
Payroll & Salary Payment at a Glance
| Payroll Requirement | Details |
|---|---|
| Payroll Frequency | Wages must be paid at least once per month on a predetermined payday. |
| Payment Method | Wages must generally be paid directly to the employee. |
| Payment Currency | Wages must be paid in Korean Won (KRW) unless otherwise permitted by law. |
| Wage Payment Principle | Wages must generally be paid in full, except for deductions authorised by law or applicable collective agreements. |
| Wage Statement (Payslip) | Employers are required to provide a written or electronic wage statement showing wage details and deductions. |
| Payroll Records | Employers must maintain wage ledgers and employment records in accordance with statutory requirements. |
| Statutory Deductions | Employers are responsible for withholding and remitting applicable taxes and statutory social insurance contributions. |
| Final Wage Payment | Outstanding wages and other payments should generally be settled within 14 days after termination, unless otherwise agreed between the employer and employee. |
South Korea’s payroll requirements are primarily governed by the Labour Standards Act. Employers are responsible for ensuring wages are paid accurately and on time, issuing wage statements, maintaining payroll records, and processing applicable tax and social insurance deductions.
Leave Entitlements
South Korea provides employees with a range of statutory leave entitlements under the Labour Standards Act and the Equal Employment Opportunity and Work-Family Balance Assistance Act. In addition to annual leave and public holidays, eligible employees may be entitled to family-related leave, including maternity leave, spouse childbirth leave and childcare leave.
Employers may offer leave benefits that exceed the statutory minimum, but must comply with applicable legislation.
Leave Entitlements at a Glance
| Leave Type | Statutory Entitlement |
| Annual Leave | Employees with less than one year of service generally accrue one day of paid leave for each month of full attendance. Eligible employees with at least one year of service and 80% attendance generally receive 15 days of paid annual leave. Additional leave accrues with longer service, up to 25 days. |
| Public Holidays | Paid statutory public holidays generally apply to workplaces with five or more regular employees, subject to applicable requirements. |
| Sick Leave | There is no general statutory entitlement to paid sick leave for ordinary non-work-related illness. Paid sick leave may be provided under company policies or employment contracts. |
| Maternity Leave | Generally 90 days for a single birth, 100 days for qualifying premature births and 120 days for multiple births. |
| Spouse Childbirth Leave | Eligible employees are entitled to 20 working days of paid leave. From 18 September 2026, leave may be taken from 50 days before the expected birth until 120 days after childbirth, subject to statutory requirements. |
| Childcare Leave | Eligible employees may generally take up to one year of childcare leave per child, extendable to 18 months under specified statutory conditions. |
| Short-term Childcare Leave | From 20 August 2026, eligible employees may use one or two weeks of childcare leave once annually for specified childcare needs. |
| Spouse Miscarriage or Stillbirth Leave | From 18 September 2026, eligible employees may qualify for up to five days of leave, with the first three days paid. |
| Family Care Leave | Eligible employees may generally take up to 90 days annually, subject to statutory conditions. |
Statutory leave entitlements may depend on employment status, length of service, attendance, family circumstances and other eligibility requirements.
Eligible employees may also qualify for government-supported leave benefits under South Korea’s Employment Insurance system.
Social Security Contributions at a Glance
South Korea’s social security system is commonly referred to as the Four Major Social Insurances, comprising National Pension, National Health Insurance, Employment Insurance and Industrial Accident Compensation Insurance. Long-term Care Insurance is administered together with National Health Insurance.
Employers are generally responsible for registering eligible employees, making the required employer contributions, withholding applicable employee contributions and remitting them to the relevant authorities.
| Contribution Scheme | Employer | Employee | Purpose |
| National Pension | Yes | Yes | Provides retirement, disability and survivor benefits. |
| National Health Insurance | Yes | Yes | Provides access to South Korea’s public healthcare system. |
| Long-term Care Insurance | Yes* | Yes* | Supports long-term care services for eligible individuals. |
| Employment Insurance | Yes | Generally yes** | Provides unemployment benefits and employment support programmes. |
| Industrial Accident Compensation Insurance | Yes | Generally no | Covers work-related injuries, occupational diseases and accidents. |
Long-term Care Insurance contributions are collected together with National Health Insurance contributions.
Employee contributions apply in accordance with the Employment Insurance Act and relevant eligibility requirements.
Statutory Social Insurance Contribution Rates (2026)
| Contribution Scheme | Employer | Employee |
| National Pension | 4.75% | 4.75% |
| National Health Insurance, including Long-term Care Insurance | 4.0674% | 4.0674% |
| Employment Insurance (Basic Rate) | 0.9% | 0.9% |
| Industrial Accident Compensation Insurance | Industry-dependent | Generally none |
The National Health Insurance figure includes Long-term Care Insurance. Additional employer Employment Insurance contributions may apply depending on the size and circumstances of the business.
Contribution rates are subject to statutory eligibility requirements, applicable contribution ceilings and assessment rules.
National Pension Contribution Changes for 2027
Under South Korea’s pension reform, National Pension contribution rates will increase progressively.
| Year | Employer | Employee | Combined |
| 2026 | 4.75% | 4.75% | 9.5% |
| 2027 | 5.00% | 5.00% | 10.0% |
The combined contribution rate is scheduled to increase progressively to 13% by 2033.
Termination & Retirement Allowance
Employers in South Korea must ensure that employment termination complies with the Labour Standards Act and other applicable employment legislation. Dismissals must be supported by lawful grounds where required, follow the prescribed statutory procedures and include the timely settlement of outstanding payments, including retirement benefits where applicable.
Termination & Retirement Allowance at a Glance
| Key Requirement | Details |
|---|---|
| Notice Period | Employers must generally provide at least 30 days’ advance notice of dismissal or payment of at least 30 days’ ordinary wages in lieu, unless a statutory exception applies. |
| Grounds for Dismissal | Dismissal must be supported by justifiable grounds where the relevant statutory protections apply. |
| Written Notice | Covered dismissals generally require written notice stating the reason for dismissal and the effective date. |
| Retirement Allowance (Severance Pay) | Eligible employees with at least one year of continuous service are generally entitled to statutory retirement benefits. |
| Minimum Retirement Allowance | Under the statutory severance arrangement, generally at least 30 days’ average wages for each year of continuous service. |
| Final Settlement | Outstanding wages and other payments must generally be settled within 14 days after termination, subject to lawful exceptions. |
| Unfair Dismissal | Eligible employees may seek relief through the Labour Relations Commission if they believe a dismissal is unlawful or unfair. |
Statutory retirement benefits generally do not apply to employees with less than one year of continuous service or employees whose average scheduled weekly working hours fall below 15 hours over the applicable assessment period.
Specific termination obligations may vary depending on workplace size, employment arrangements and the circumstances of dismissal.
Employer of Record (EOR) in South Korea
Expanding into South Korea presents exciting business opportunities, but it also requires employers to comply with local employment, payroll, tax and labour regulations. For businesses without a local legal entity, an Employer of Record (EOR) may provide support with local employment arrangements, subject to applicable South Korean laws.
An EOR provider assists with employment administration, including contracts, payroll, statutory contributions and HR compliance. The responsibilities of the provider and client must be structured in accordance with applicable employment and worker-dispatch regulations.
Employer of Record (EOR) at a Glance
| Key Information | Details |
|---|---|
| What is an EOR? | A third-party organisation that supports businesses with local employment arrangements and administration. |
| Who is the legal employer? | The EOR becomes the legal employer and is responsible for local employment compliance. |
| Who manages the employee? | The client company retains responsibility for the employee’s day-to-day work, performance and business objectives. |
| Is a local entity required? | Businesses may be able to hire without establishing their own local legal entity where an appropriate employment arrangement is available. |
| Employment administration | The EOR manages employment contracts, onboarding, payroll, statutory contributions, benefits administration and offboarding in accordance with local employment laws. |
| Compliance support | Helps businesses comply with South Korea’s employment, payroll and labour regulations while reducing administrative complexity. |
| Best suited for | Companies exploring the South Korean market, expanding internationally or hiring local employees through legally suitable employment arrangements. |
Need support hiring in South Korea?
Link Compliance provides Employer of Record, payroll, HR outsourcing and recruitment solutions across South Korea and international markets. Whether you’re hiring your first employee or expanding your local workforce, our team helps you explore suitable employment solutions and navigate local employment regulations with confidence.
(Updated October 2026)
Our Local Presence
Please find our South Korea office address below:
111, Ogeum-ro,
Songpa-gu, Seoul,
Republic of Korea
Email: info@linkcompliance.com
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Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.
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