South Korea

Employment

The employment contract is not required by law to be written unless the employee is part-time. However the terms of employment such as working hours, wages, paid leaves and etc. must be in writing after the employee and employer agree on it.

Payroll

Salaries are paid on monthly basis. The paydays are decided between the employee and employer.

HR & Labor

Working hours: Full time employment is considered 40 hours per week and 8 hours per day. Additional 12 hours of overtime is permitted, the employer must pay 150% of average wages for overtime hours and night hours.
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Employees are entitled to rest breaks – 1 hour for each 8 hours they have worked and 30 minutes for each four hours of work. They are also entitled to one rest day which is usually Sunday.

Immigration

There are 9 different types of visas for individuals who are entering South Korea for business purposes. All the appropriate documents must be sent to the Ministry of Justice. Consulates overseas do not approve these types of visas.

Minimum Wage

Minimum wage is 6030KRW/hour.

Pension Fund

The employer contributes 4.5%.

The employee contributes 4.5% with monthly salary ceiling of KRW4.08 million.

Severance Payments

To calculate severance payments, the employer must multiply the consecutive years the employee worked by average monthly wages.

Advance Notice

Advance notice is one month.

Termination Procedure

Employer must provide 30 days notice or a payment in lieu of the notice.

Sick Days

No official sick day regulations. Unless the injury occurred at work.

Public Holidays

There are 10 public holidays.

Vacation Days

Employee working in the company for one year is entitled 15 days of paid vacation, if they have been in the company for over three years, they get one additional day for every two years. They can receive up to 25 days of maximum paid leave.

Additional Employee Withholdings

1) Health Insurance/Long Term Care Insurance
2) Unemployment Insurance

1) The employer contributes 3.23% for health insurance and 3.2% for long term care insurance.
2) The employer contributes 0.65% plus between 0.25% to 0.85% for job security and vocational capability insurance.

1) The employees contribute 3.23% for health insurance and 3.2% for long term care insurance.
2) The employees contribute 0.65%.

Expat Benefits

Companies in South Korea offer expats benefits such as base salary based on their home country, cost of living allowance, mobility premium for the expat and his/her family, hardship premium goods and services differential and housing assistance. The benefit packages differ from company to company.

VAT

VAT is 10% standard rate.