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

Education	Average	Median	Bottom 25%	Top 25%
High School Graduation or less	45M KRW	31M KRW	25M KRW	44M KRW
Junior college Graduation	44M KRW	36M KRW	28M KRW	52M KRW
Bachelor's Degree or higher	61M KRW	49M KRW	34M KRW	75M KRW