Day wages up to ₩187,000 carry no tax at all
A day labourer's pay gets a ₩150,000 daily deduction, then 6% on the rest, then a 55% tax credit, which works out to an effective 2.7%. On top of that, withholding under ₩1,000 is not collected at all, so a day wage up to ₩187,000 is taxed at zero. At ₩200,000 a day the tax is ₩1,485 including local tax, or ₩29,700 over 20 days.
Conditions used in the video
- Category
- day labourer (paid by the day)
- Daily deduction
- ₩150,000
- Withholding rate
- 6%
- Wage-income tax credit
- 55%
- Small-amount rule
- under ₩1,000 is not collected
Results
- ₩150,000 a day
- tax ₩0
- ₩187,000 a day
- tax ₩0 (₩999 → not collected)
- ₩200,000 a day
- ₩1,485 a day
- ₩250,000 a day
- ₩2,970 a day
- ₩200,000 × 20 days
- ₩29,700 · net ₩3,970,300
- Effective rate (above the deduction)
- 2.7% + local tax
At a glance
₩150,000 deduction → 6% → 55% credit → under ₩1,000 not collected.
- ₩150,000₩0
- ₩187,000₩0
₩999 → not collected
- ₩200,000₩1,485
- ₩250,000₩2,970
Why it works this way
How much tax comes out of pay for day work? Many think of 3.3%, but day labourers are calculated differently, and up to ₩187,000 a day it is zero.
In statutory order.
소득세법 제47조제2항 · 제129조제1항제4호 · 제59조제3항.
- Wage-income deduction₩150,000 off the day wage. At ₩150,000 or less, zero from here
- Rate 6%remainder × 6%
- Tax credit 55%55% of that tax is credited → effective 2.7%
At ₩200,000: (200,000 − 150,000) × 6% × 45% = ₩1,350. Plus 10% local income tax, ₩1,485.
소득세법 제86조, the small-amount rule.
- ₩180,000 a day(180,000 − 150,000) × 2.7% = ₩810 → under ₩1,000 → ₩0
- ₩187,000 a day₩999 → ₩0
- ₩188,000 a day₩1,026 → collected (₩1,128 with local tax)
The test is on the national income tax, per payment. Paid daily, it is the daily amount.
At ₩200,000 a day for 20 days in a month, tax is ₩29,700 and net pay ₩3,970,300. The tax is 0.74% of ₩4M.
Where does 3.3% come from? That is business income: 3% plus 0.3% local tax. The same job is taxed differently depending on whether the payer reports it as day-labour wages or as business (freelance) income. Day-labour wages follow the calculation above; business income on ₩200,000 a day is ₩6,600.
In short: day labourers get the ₩150,000 daily deduction, the 55% credit and the under-₩1,000 rule, so up to ₩187,000 a day is tax-free and ₩200,000 a day is ₩1,485.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
소득세법 제47조제2항 (wage-income deduction for day labourers)
In force In force
The deduction for a day labourer is ₩150,000 per day.
What this means
🔴 Up to ₩150,000 a day the taxable amount is zero.
소득세법 제129조제1항제4호 단서 · 제59조제3항 (withholding rate · tax credit)
In force In force
A day labourer's wages are taxed at 6/100, and 55/100 of the calculated tax is credited.
What this means
6% × (1 − 55%) = effective 2.7%.
소득세법 제86조 (small amounts not collected)
In force In force
Where the withholding tax is under ₩1,000, the income tax is not collected.
What this means
🔴 Daily tax of ₩999 or less is zero. ₩187,000 a day is the line.
소득세법 제129조제1항제3호 (withholding on business income)
In force In force
Business income subject to withholding is taxed at 3/100.
What this means
'3.3%' is this one. Day-labour wages and business income are different calculations.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Daily and Part-Time Wage Tax
Frequently asked
Isn't all part-time work 3.3%?
No. 3.3% is the rate for business (freelance) income. Reported as a day labourer, it is an effective 2.7% after the ₩150,000 deduction, and zero under ₩1,000. Check the payslip or payment statement for which it is.
Does monthly-paid part-time work get the ₩150,000 deduction?
No. Continuous employment with the same employer for three months or more (one year in construction) makes you a regular, not a day, worker, taxed by the simplified tax table. The ₩150,000 deduction is for day labourers only.
Do I need a year-end settlement?
Day-labour wages are separately taxed and finished by withholding, so there is no year-end or global settlement. Business income at 3.3% is settled in the May global income tax return.
Two jobs in one day?
Each payer applies the ₩150,000 deduction and the small-amount rule separately. If each day wage is ₩187,000 or less, both are zero.
What about social insurance?
This covers income tax only. At 8+ days or 60+ hours a month you may be enrolled in the National Pension and health insurance, and employment and industrial accident insurance cover day workers too. Those are deducted separately.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.