Salary→Hourly Wage Converter

Korea's salary system is divided into annual salary, monthly salary, and hourly wage systems. As of 2025, Korea's minimum hourly wage is 10,030 won, a 3.1% increase from the previous year. Annual salary is mainly used for office or management positions, with total annual pay divided into 12 months. Monthly salary is used by civil servants and some companies, receiving a fixed amount each month. Hourly wage is primarily applied to part-time or temporary workers. According to Korean Labor Standards Act, the standard workweek is 40 hours, and weekly paid holidays are available for those working 15+ hours per week. As of 2024, Korea's average annual salary is approximately 40 million won, with Seoul averaging 45 million won, showing regional differences. According to Ministry of Employment and Labor statistics, regular workers' average monthly salary is about 3.3 million won. Understanding the difference between pre-tax and net take-home pay is crucial when calculating wages.

To convert annual salary to monthly salary, simply divide by 12. For example, an annual salary of 36 million won equals 3 million won per month. To convert to hourly wage, first confirm weekly work hours. Based on 40 hours per week, annual work hours are approximately 2,080 hours (40 hours × 52 weeks). Dividing 36 million won by 2,080 hours gives an hourly wage of about 17,300 won. However, this is pre-tax, and 4 major insurances and income tax are actually deducted. The 4 major insurances (national pension, health insurance, employment insurance, industrial accident insurance) account for approximately 9-10% of total salary, with income tax ranging from 6-45% depending on taxable income. Therefore, net take-home pay is approximately 75-80% of pre-tax amount. Calculating hourly wage including weekly holiday allowance is also important - those working 15+ hours per week receive additional 8 hours of average weekly work hours.

Korea's minimum hourly wage for 2025 is confirmed at 10,030 won. This corresponds to 2.09 million won per month and approximately 25 million won annually based on 40 hours per week. The Minimum Wage Act applies to all businesses, with violations punishable by up to 3 years imprisonment or fines up to 20 million won. Weekly holiday allowance is paid to workers who work 15+ hours per week and have perfect attendance on prescribed workdays. The calculation method is "weekly work hours ÷ 5 days × hourly wage". For example, working 30 hours per week at 10,030 won per hour results in weekly holiday allowance of 30 hours ÷ 5 days = 6 hours × 10,030 won = 60,180 won. Converting to monthly salary: (30 hours + 6 hours) × 4.345 weeks × 10,030 won = approximately 1.57 million won. The Ministry of Employment and Labor determines next year's minimum wage through Minimum Wage Commission deliberation in July each year, effective from January 1 of the following year.

In Korea, 4 major insurances and taxes are deducted from workers' salaries. The 4 major insurances consist of national pension (4.5%), health insurance (3.545%), long-term care insurance (12.95% of health insurance premium), and employment insurance (0.9%), totaling approximately 9.18% deduction. For example, receiving 3 million won monthly salary results in about 275,000 won deducted for 4 major insurance premiums. Income tax varies by taxable income bracket: 6% for up to 12 million won, 15% for 12-46 million won, 24% for 46-88 million won progressive tax rates apply. Additionally, local income tax equivalent to 10% of income tax is deducted. For 3 million won monthly salary (36 million won annually), applying earned income deduction and various deductions results in actual taxable income of about 15 million won level, with approximately 70,000 won income tax deduction. Therefore, total deduction is about 350,000 won, with net take-home pay of approximately 2.65 million won.

During salary negotiation, clearly understanding the difference between pre-tax and net take-home pay is essential. In Korea in 2025, if offered 40 million won annual salary, net take-home pay is approximately 32 million won (about 2.67 million won monthly). Confirm whether annual salary includes base pay, various allowances, and bonuses. Many companies present offers like "base pay + 400% bonus", meaning 4 times the base pay is paid as annual bonus. For example, with 20 million won base pay and 400% bonus, total annual salary is 100 million won. However, bonuses may vary depending on company performance, requiring caution. Items included in annual salary calculation are base pay, position allowance, meal allowance, transportation, bonuses, etc., while excluded items are retirement pay, welfare benefits, etc. Korean companies' average annual salary increase rate is approximately 3-5%, with significant differences by occupation and company size. IT industry averages 5-7%, manufacturing 3-4% level.

Hourly workers receive wages based on actual work hours. Based on 2025 minimum hourly wage of 10,030 won, working 8 hours daily, 5 days weekly results in approximately 2.09 million won monthly salary. Hourly workers are also protected by Labor Standards Act, eligible for weekly holiday allowance, annual leave, and retirement pay when working 15+ hours per week. Annual leave grants 15 days when attending 80%+ throughout the year, with unused annual leave paid as allowance. Retirement pay is paid when continuously working 1+ years and working 15+ hours per week, receiving 30 days of average wage per year. For example, working 20 hours weekly for 2 years with 1 million won average monthly salary results in approximately 2 million won retirement pay. Night work (10 PM-6 AM) pays 50% additional of ordinary wages, and overtime work (exceeding 40 hours weekly) also pays 50% additional. Holiday work pays 50% additional within 8 hours, 100% additional exceeding 8 hours. According to Ministry of Employment and Labor statistics, hourly workers accounted for approximately 45% of total workers in 2024.

Freelancers and contract workers have different salary systems from regular employees. Freelancers are classified as business income earners with only 3.3% withholding tax deduction (3% income tax, 0.3% local income tax), requiring self-enrollment in 4 major insurances. For example, receiving 5 million won project payment results in 165,000 won deduction and 4.835 million won received. If annual income exceeds 24 million won, additional tax may occur during comprehensive income tax filing in May next year. Contract workers are classified as employees with 4 major insurances and income tax deducted identically to regular employees. However, employment stability is low due to fixed contract periods. As of 2024, Korea's average freelancer hourly rate is approximately 30,000 won, with IT developers at 50,000-100,000 won, designers at 30,000-50,000 won levels. Contract workers' average annual salary is approximately 32 million won, about 80% of regular employees. Freelancers must self-pay 100% of 4 major insurances as regional subscribers, spending approximately 15-20% of actual income on insurance premiums.

Korea's average annual salary by industry shows significant differences. As of 2024, IT software developers' average annual salary is 55 million won highest, converting to approximately 26,400 won hourly. Finance averages 50 million won (24,000 won hourly), manufacturing 42 million won (20,200 won hourly), service 30 million won (14,400 won hourly) levels. Civil servants vary by rank, but 9th grade civil servant starting salary is approximately 28 million won, 5th grade clerk about 45 million won. Large company new employee average annual salary is approximately 45 million won, small-medium companies 35 million won. Recently notable occupations include data scientist (average 65 million won), AI engineer (average 70 million won), blockchain developer (average 60 million won). Part-time hourly wages differ by industry: convenience stores at minimum wage level 10,030 won, cafes 11,000-13,000 won, academy instructors 20,000-50,000 won. According to job platform Saramin's 2024 survey, office workers consider appropriate annual salary to average 50 million won.

According to Korean Labor Standards Act, workers attending 80%+ throughout the year receive 15 days paid annual leave. When continuously working 3+ years, 1 day is added every 2 years up to maximum 25 days. Unused annual leave is paid as allowance, calculated as "ordinary wage × 8 hours × unused days". For example, a worker earning 20,000 won hourly who didn't use 10 days of annual leave receives annual leave allowance of 20,000 won × 8 hours × 10 days = 1.6 million won. Workers under 1 year accrue 1 day annual leave per month of perfect attendance, settled with 15 days after 1 year. Sick leave is not legally mandatory, but many companies provide 5-10 days paid sick leave annually. Family event leave typically includes 5 days for marriage, 5 days for parent death, 3 days for spouse's parent death. Childcare leave can be used for 1 year until child is 8 years old or elementary 2nd grade, receiving 80% of monthly ordinary wage (ceiling 1.5 million won, floor 700,000 won) as childcare leave benefit. According to Employment Insurance Corporation statistics, about 130,000 people used childcare leave in 2023.

Payslips are important documents showing detailed worker salary breakdown. Payment items include base pay, overtime allowance, night work allowance, holiday work allowance, various allowances (position allowance, meal allowance, transportation, etc.). Deduction items include 4 major insurances (national pension, health insurance, long-term care insurance, employment insurance) and income tax, local income tax. As of 2025 baseline, receiving 3 million won monthly salary results in deductions: national pension 135,000 won (4.5%), health insurance 106,000 won (3.545%), long-term care insurance 14,000 won (12.95% of health insurance premium), employment insurance 27,000 won (0.9%). Income tax and local income tax are deducted approximately 50,000-70,000 won according to simplified tax table. When checking payslips, verify annual salary and monthly salary match contract, overtime allowance is properly calculated, 4 major insurance premium rates are accurate. Particularly for overtime work, ordinary hourly wage × 1.5 should be received, so 40 hours monthly overtime should receive approximately 60 hours' worth of wages. According to Ministry of Employment and Labor, payslip issuance is mandatory, with violations subject to fines up to 5 million won.