Payroll
Deduction Items in Monthly Salary
Income Tax
Wage & salary income tax is a tax levied on the price of providing and receiving work. The worker is a taxpayer, however, the employer has an obligation to withhold the income tax, to report and to pay it by the 10th day of the following month on the behalf of worker.
National Insurances
National Insurances is also called 'four major insurances', 4대보험 in Korean. They are National Pension, National Health Insurance, Employment Insurance, and Industrial Accidental Compensation Insurance.
National pension and National Health Insurance are paid by employee and employer each, and others are paid by employer. Around 8% of national insurance is deducted from gross salary and is withheld by employer. Employer is obligated to pay aprox. 10% of insurance and its withheld amount from employee every month.
