When working in Korea, you might notice that the salary you receive is lower than your expected salary. For example, you were supposed to receive 2.4 million Korean won this month, but only 2.2 million Korean won was deposited. What gives? This difference is due to tax deductions and social insurance contributions. Understanding these systems is crucial for understanding your salary and maximizing your benefits before signing with a school.
Average Starting Teaching Salaries in Korea
Salaries for teaching jobs in Korea differ based on the institution type and location. International schools typically offer starting salaries ranging from approximately 2.4 million to 2.7 million KRW per month (~$1,700 to $1,900 USD). Language academies usually start at around 2.4 million KRW (~$1,700 USD) per month, with experienced teachers able to negotiate salaries upwards of 3.0 million KRW (~$2,100 USD) or more.
Related Blog: Labor Rights for Native English Teachers in Korea
What Taxes are Paid by Teachers in Korea?
Native English teachers working in Korea typically pay income tax on their earnings. Basic income (national) taxes are withheld monthly by your school and paid directly to the Korean tax authorities. Schools calculate monthly tax using the Simplified Tax Withholding Table provided by the National Tax Service (NTS). Teachers also pay local income tax, which is 10% of the national income tax. By the end of January each year (or upon leaving Korea), teachers must complete a year-end tax settlement to finalize their tax liability. Native English teachers are generally eligible for the same income deductions and tax credits as Korean workers, except for housing-related deductions and credits.
Teachers may choose to pay a 19% flat tax instead of the standard progressive rate (6–45%) under Article 18-2 of the Restriction of Special Taxation Act. However, choosing the flat tax disqualifies you from standard deductions, tax credits, and exemptions, including non-taxable allowances. To apply, teachers must submit a Flat Tax Rate Application to their employer (withholding agent) along with relevant income deduction and tax credit documents.
Korea's 4 Major Social Insurances
Korea’s 4 major social insurances refer to four types of social security programs designed to protect and support workers in Korea.
1. National Pension: Public pension plan for financial support after retirement (65 years old).
- Teacher contribution: 4.5% (monthly salary)
- School contribution: 4.5%
- Total Contribution: 9% (as of 2025, will begin to rise gradually by 0.5 percentage points each year, from 9 percent in 2025 to 13 percent in 2033.)
2. Health Insurance & Long-term care Insurance: A national health insurance plan covers essential medical expenses, health checks, and general healthcare costs.
- Teacher contribution: 3.545% (monthly salary)
- School contribution: 3.545%
- Total Contribution: 7.09%
3. Employment Insurance: Employment or unemployment insurance provides unemployment benefits if you lose your job.
- Teacher contribution: 0.9% (monthly salary)
- School contribution (under 150 workers): 0.9%
- Total Contribution: 1.8%
4. Worker’s Compensation Insurance: Workers’ compensation or industrial insurance covers medical expenses and compensation for injuries or illnesses that occur as a result of work.
The insurance premium depends on the size and payroll of the school. For educational services, the standard rate is 6 per 1,000 of total payroll (i.e., 0.6%).
Total: ~9.39% of your monthly salary
How to Calculate Your Income After Four Social Insurance Contributions
1. Visit the Four Social Insurance Calculator Page (click here)
2. Type your monthly salary in the box after the monthly salary ('월 급여') and click calculate ('계산').
3. The total 'Employee Contribution' should be listed in the bottom row of the second column. Subtract that amount from your monthly salary. That is your income after your total social insurance contributions.
How to Calculate Your Income After Income Taxes and Four Social Insurance Contributions
To estimate your monthly take-home pay after income tax and Korea’s four major social insurance contributions, you can use an online calculator like the Saramin Salary Calculator.
1. Visit the Saramin Salarly Calculator Page (click here)
2. Under salary type ("급여 기준"), click monthly salary ("월급").
3. Type your monthly salary ( "월급") and press Enter. The calculator will display your estimated monthly take-home pay ("월 예상 실수령액").
Example:
- Monthly salary: 2,500,000 KRW (2.5 million Korean won).
- Total deductions (income tax + social insurance contributions): 248,350 KRW.
- Estimated take-home pay: 2,251,650 KRW (2.25 million Korean won).
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Please note: The results from this calculator are estimates only and may differ from the actual figures. However, if your pay is drastically different from estimates, please check with your school. We recommend reviewing your pay slip carefully to see the exact breakdown of taxes and social insurance contributions. (See sample form below.) |
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Embark Recruiting
As former native English teachers in Korea, we know exactly what it’s like to navigate teaching abroad. That’s why we’re committed to increasing transparency in schools and improving Korea’s ESL teaching industry. At Embark Recruiting, we provide full support to help you succeed. Our blogs offer guidance, tips, and insider knowledge for teaching in Korea.