Korea Annual Salary → Monthly Take-Home Pay

What is subtracted

The yearly salary is split into twelve equal months and rounded to the won. A meal allowance, capped at 200,000 won a month, is removed before pension, health insurance, long-term care, employment insurance, and withholding tax. Income tax is looked up in the simplified wage table in force from 1 March 2026, then reduced for children aged 8 to 20. Local income tax is 10% of that income tax, with amounts under 10 won dropped.

National Pension limits change in July 2026. January to June uses 400,000 to 6,370,000 won. July to December uses 410,000 to 6,590,000 won. The annual total is six months of each half. The withholding ratio is 100%.

Formula

Disclosed simplifications

• Monthly withholding from the simplified table at 100%, not the final tax. The settlement next February can refund or charge a difference. Card spending, insurance, medical costs, education, housing, pension accounts, and donations are not modelled.
• Twelve equal monthly payments. Bonuses, overtime, and severance pay are not modelled.
• Only the meal allowance is treated as non-taxable, and it is capped at 200,000 won a month.
• 2026 rates apply for the full year, except National Pension limits, which switch in July. The child deduction uses the amounts from 1 March 2026. January and February payslips used the older child amounts, and those older amounts are not modelled.
• In practice the pension base and the health-insurance base follow reported or previous-year income. A mid-year raise is not reflected until reassessment.
• Not modelled: health insurance on other income, the Durunuri subsidy, the employment-insurance exemption for someone newly hired at 65 or older, the small-firm employment tax reduction, the flat rate for some foreign workers, or daily-worker rules.
• Industrial-accident insurance is excluded because the employer pays all of it. The employer-only part of employment insurance is excluded too.
• All figures are estimates and not tax advice.