Question 1

What is net annual salary and how is it calculated?

Accepted Answer

Net annual salary is the actual amount received after deducting the four major insurance premiums and income tax from the gross annual salary. Net Annual Salary Calculation Method: Gross Annual Salary - (4 Major Insurance Premiums + Income Tax + Local Income Tax) = Net Annual Salary

Question 2

What are the 4 major insurance rates and income tax rates for 2025?

Accepted Answer

The main deduction rates applied as of 2025 are as follows: • National Pension: 4.5% of taxable income is deducted. • Health Insurance: 3.545% of taxable income is deducted. • Long-term Care Insurance: 0.9128% (frozen compared to 2024) • Employment Insurance: 0.9% of taxable income is deducted. • Local Income Tax: 10% of income tax is deducted.

Question 3

Is there a quick way to calculate net salary by annual salary?

Accepted Answer

The 22% deduction method for simply calculating net salary from monthly pay refers to a method of deducting at an approximate rate. 1. Monthly gross salary x 0.22 = Approximate deduction amount 2. Monthly gross salary - Deduction amount = Monthly net salary

Age	Average	Median	Bottom 25%	Top 25%
under 20s	26M KRW	25M KRW	23M KRW	28M KRW
20 to 24 years old	29M KRW	27M KRW	24M KRW	32M KRW
25 to 29 years old	36M KRW	32M KRW	27M KRW	41M KRW
230 to 34 years old	44M KRW	39M KRW	30M KRW	52M KRW
35 to 39 years old	52M KRW	45M KRW	33M KRW	62M KRW
40 to 44 years old	57M KRW	48M KRW	33M KRW	70M KRW
45 to 49 years old	59M KRW	48M KRW	31M KRW	75M KRW
50 to 54 years old	60M KRW	45M KRW	29M KRW	78M KRW
55 to 59 years old	55M KRW	40M KRW	27M KRW	71M KRW
60 years and older	45M KRW	30M KRW	24M KRW	46M KRW