Employer of Record in South Korea: Hire, Manage, and Pay Talent Seamlessly

Agreements in South Korea

• South Korea has a free trade agreement (FTA) with the United States, which includes labor provisions that aim to protect workers' rights and promote decent work conditions.
• South Korea is also a member of the International Labor Organization (ILO), an agency of the United Nations that sets international labor standards and promotes decent work.
• In addition, it has entered into various bilateral and multilateral agreements with other countries that cover labor and employment issues.
• These agreements often specify the language in which they are written. These can be Korean, English, or both, depending on the parties involved.

Visa in South Korea

• E-1 Visa: For foreign nationals coming to South Korea to engage in international trade activities.
• E-2 Visa: For foreign nationals coming to South Korea to teach English at a public or private institution.
• E-7 Visa: For foreign nationals coming to South Korea to work in a specialized field, such as engineering or IT.
• D-8 Visa: For foreign nationals coming to South Korea to invest in a business.

Minimum Wage in South Korea

Annual Bonus in South Korea

Health Benefits in South Korea

• National health insurance: South Korea has a national health insurance system that provides basic coverage to all citizens and legal residents. Employers are required by law to enroll their employees in the national health insurance program.
• Additional health insurance: Some employers may also offer additional health insurance benefits to their employees, such as private health insurance or supplemental coverage for dental or vision care.
• Wellness programs: Employers may also offer wellness programs or other initiatives aimed at promoting employee health and well-being

Working Hours and Overtime in South Korea

• Work hours: The standard workweek is 40 hours
• Break: Under South Korean law, employees are entitled to a 1-hour break for every 8 hours worked.
• Overtime: Employees who work more than 40 hours per week are entitled to overtime pay, which is typically 1.5 times their regular hourly rate.

Leaves in South Korea

Social Security in South Korea

Taxes for Employers in South Korea

• National Pension Insurance: Employers are required to pay 4.5% of the employee's salary to the National Pension Insurance. The employee is also required to contribute 4.5% of their salary to this scheme. Monthly contribution capped at 248,850.
• Health Insurance: Employers must also contribute to the National Health Insurance scheme, which is mandatory for all employees. The employer pays around 3.54% of the employee's salary towards this scheme.
• Employment Insurance: Employers are required to pay 1.15%-1.75% of the employee's salary towards the Employment Insurance program, which provides unemployment benefits to eligible employees.
• Worker Accident Compensation Insurance: Employers are required to pay for insurance that covers any work-related injuries or accidents that their employees may face. The is 0.7-18.6%
• Long-term care insurance: 0.45%
• Resident tax: 0.5%
• Corporate Income Tax: Employers are required to pay corporate income tax on their profits. The corporate income tax rate is currently 10%.

Probation in South Korea

Termination in South Korea

• The employee's poor performance or misconduct
• The expiration of the employment contract
• The mutual agreement of the employer and employee to terminate the employment relationship

Severance Pay in South Korea

Employees or Contractors in South Korea

• Employers who misclassify employees as independent contractors may be required to pay back wages and benefits, as well as face fines and other legal consequences.
• Additionally, employees who are misclassified as contractors may not receive certain legal protections and benefits that are afforded to employees.