Employer cost in Korea at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 38,022,364 KRW | 11.1% | 42,229,188 KRW |
| 100% of AW | 56,749,797 KRW | 11.1% | 63,028,638 KRW |
| 167% of AW | 94,772,160 KRW | 10.1% | 104,378,879 KRW |
Worked example
The OECD average wage in Korea for 2025 is 56,749,797 KRW (about $67,594 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 11.1%, or 6,278,842 KRW. That brings the statutory total to 63,028,638 KRW a year (5,252,387 KRW a month), or 30,302 KRW per hour at 2,080 hours. In 2024 the rate at the average wage was 11.1%, so it fell. The employer rate falls from 11.1% at the average wage to 10.1% at 167% of it, a sign that contributions are capped above a ceiling, so high earners cost proportionally less.
Korea ranks #26 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Korea?
At the OECD average wage of 56,749,797 KRW, about 63,028,638 KRW a year including 11.1% employer social security (2025).
What are employer social security contributions in Korea?
About 11.1% of gross pay at the average wage, 11.1% at 67% and 10.1% at 167% of it (OECD model).