Statutory Social Insurances and HR Tips

l Increase in max limit of maternity leave pay provided by the Korean Labor Welfare Corporation

The Ministry of Employment and Labor (MOEL) announced that effective from January 1, 2026, the maximum limit of maternity leave pay provided by the government will be increased from KRW 2,100,000 per month to KRW 2,200,000 per month.

Please note that government support differs depending on whether the employer is a preferentially supported company or a large company.

l Rate change for statutory national health insurance and long-term care for the elderly in 2026

Effective from January 1, 2026, the insurance rate of the statutory national health insurance has increased from 7.09% to 7.19% of monthly salary income (excluding non-taxable income). Employer and employee portion each has risen from 3.545% to 3.595% each. The insurance rate of long-term care for the elderly (which is the surcharge of the national health insurance) has also been increased from 0.4591% to 0.4724% of the national health insurance premiums.

(NOTE) LTCI contribution is imposed based on the NHI premium following the calculation formula below:

LTCI monthly contribution = NHI contribution x [LTCI contribution rate (0.9448%) / NHI contribution rate (7.19%)]

l Rate change for statutory national pension contributions in 2026

Effective from January 1, 2026, the statutory national pension contribution rate has increased from 9.0% to 9.5% of monthly salary income (excluding non-taxable income). Accordingly, both the employer’s and the employee’s share have increased from 4.5% to 4.75% each.

l Annual settlement of the statutory social insurance premiums required in April 2026

Employers are required to perform annual settlement of statutory social insurance premiums in March of the following year after each calendar year end for National Health Insurance, Employment Insurance and Industrial Accident Compensation Insurance. Any overpayments or underpayments identified through the settlement should be reflected in the April payroll accordingly. In contrast, no annual settlement is required for National Pension.

For National Health Insurance, if the additional premium resulting from the 2025 year-end settlement exceeds the April 2026 premium amount, employees may elect to pay the difference in installments over 2 to 10 months, starting from April 2026.

For your future reference, the statutory social insurance rates applicable in 2026 are summarized below:

(Note a) The upper and lower limits of the NHI contribution for 2026 have not yet been finalized.

(Note b) LTCI contribution is imposed based on the NHI premium following the calculation formula below:

LTCI monthly contribution = NHI contribution x [LTCI contribution rate (0.9448%) / NHI contribution rate (7.19%)]

l Labor law update on minimum wage

The MOEL officially announced that the minimum hourly wage will increase from KRW 10,030 to KRW 10,320 effective from January 1, 2026. The monthly minimum wage will be KRW 2,156,880 with 209 work hours under the labor laws of Korea. This requirement shall be applied equally across all industries.