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The Active Population in Figures

Working Conditions

Legal Weekly Duration

40 or 44 hours per week.

Retirement Age

60 years in most companies and public institutions; discussions are underway to raise it to 65. Access to the national pension begins at 65.

Working Contracts

Employment contracts determine if the employee is part of the regular or non-regular staff. Permanent employees form the regular staff. Among the non-regular staff, there are different types of contract: part-time workers, temporary workers, dispatched workers, fixed-term contract workers and entrusted employees.

Labour Laws

Doing Business: South Korea, to obtain a summary of labour regulations that apply to local entreprises

Cost of Labour

Minimum Wage

The national statutory minimum wage is KRW 10,320 per hour (approx. KRW 2,156,880 - USD 1,490 - monthly based on 209 hours), set by the Minimum Wage Council under the Ministry of Employment and Labor of the Republic of Korea and effective from 1 January 2026.

Average Wage

In South Korea, the average yearly salary translates to approximately ₩47,145,828 Korean won (KRW). This is equal to around $35,786 USD.

Social Contributions

Social Security Contributions Paid By Employers: •    National Pension: 4.5% (National pension contribution is capped at a monthly salary of KRW 5,240,000)
•    Health Insurance: 3.924% (currently capped at a monthly contribution of KRW 8,203,680 in total)
•    Employment Insurance: from 1.05% to 1.65% (1.15% to 1.75% starting from July 2022), depending on the number of employees and type of industry.
•    Worker’s Compensation Insurance: 0.73% to 18.63% depending on the industry
Social Security Contributions Paid By Employees: •    National Pension: 4.5% (National pension contribution is capped at a monthly salary of KRW 5,240,000)
•    Health Insurance: 3.924% (currently capped at a monthly contribution of KRW 8,203,680 in total)
•    Employment Insurance: 0.80%

Social Partners

Employer Associations

KEF - Korea Employers Federation
SMBA - Small and Medium Business Administration

Social Dialogue and Involvement of Social Partners

Union negotiations in South Korea take place at the national level, the sector level or the company level.

Labour Unions

Unionisation Rate

10.1% in 2012.

Labour Regulation Bodies

Ministry of Labour