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The Active Population in Figures

Working Conditions

Legal Weekly Duration

40 or 44 hours per week.

Retirement Age

The minimum normal retirement age is 60. Employees may choose to retire early if the work contract or collective agreement permits earlier retirement.

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

Since January 2022, the legal minimum wage is KRW 9,160 (approximately USD 7) per hour (Minimum Wage Commission).

Average Wage

The average salary in South Korea in 2020 is approximately $41,960 a year, $3,500/month (OECD).

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