Social insurance is not four — five lines of rates, and the ceiling that sets the ratio
The social insurance box on a payslip has five lines: national pension, health insurance, long-term care tucked after health, employment insurance, and industrial accident insurance paid entirely by the employer. On ₩3M the employee share is ₩291,522, 9.72%, but on ₩10M it is ₩809,765, 8.1%, so the higher earner pays a lower ratio. Only the national pension has a standard monthly income ceiling, ₩6.59M, above which no pension attaches. The employer pays the same amount, and from 1 January 2027 the pension goes to 10% and the first line rises by ₩7,500.
Conditions used in the calculation
- Case
- monthly pay ₩3M · ₩6.59M · ₩7M · ₩10M · 2026 rates
- Step ①
- five rates. Pension 9.5% ÷ 2 · health 7.19% ÷ 2 · long-term care health premium × 13.14% · employment 1.8% ÷ 2 · industrial accident all employer
- Step ②
- ceiling and floor. Pension standard monthly income ceiling ₩6.59M · floor ₩410,000 · health ceiling far higher
- Step ③
- employer's share. Same amount for pension, health, long-term care and employment (unemployment benefit) · employer-only: employment stability and skills development, industrial accident
- Step ④
- next year. +0.5 points a year from 2026 · 10% on 1 January 2027 · 13% in 2033
- Base for the rates
- monthly remuneration (pay less tax-free items)
Results
- ₩3M · five lines
- ₩142,500 · ₩107,850 · ₩14,172 · ₩27,000 · accident ₩0 = ₩291,522 · 9.72%
- ₩10M
- ₩809,765 · 8.1% (one ceiling lowers the ratio)
- ₩6.59M · ₩7M
- pension ₩313,025 · ₩7M total ₩660,743 · 9.44%
- Employer's share (₩3M)
- ₩291,522 + employment stability and skills development + industrial accident. Employment cost = pay + a little over 10%
- 1 January 2027
- employee 4.75% → 5% · ₩142,500 → ₩150,000 · +₩7,500 · total ₩299,022
- Floor
- below ₩410,000 is charged as ₩410,000
At a glance
9.72% on ₩3M, 9.44% on ₩7M, 8.1% on ₩10M. The ratio falls above the ₩6.59M pension ceiling.
- ₩3M9.72%
- ₩7M9.44%
- ₩10M8.1%
Why it works this way
Have you noticed five lines in the social insurance box of your payslip? National pension, health insurance, long-term care, employment insurance. We learned four, but there are five lines. The fifth is long-term care, tucked after health insurance. And the premium ratio differs between someone on ₩3M and someone on ₩10M: 9.72% versus 8.1%, the higher earner paying the lower ratio, because only the national pension has a ceiling. Social insurance is four by name but five by line, and the rates are the same but the ceiling changes the ratio. Most people look only at the total, unaware why each line is what it is, and mistake it for tax, but these are premiums with benefits that come back.
National Pension Act Article 88 · Health Insurance Act Article 73 · Long-Term Care Insurance Act Article 9 · Premium Collection Act Article 13.
- ① ② The big twopension 9.5% ÷ 2 = 4.75% → ₩142,500 · health 7.19% ÷ 2 = 3.595% → ₩107,850
- ③ ④ The small twolong-term care = health premium × 13.14% → ₩14,172 · employment 1.8% ÷ 2 = 0.9% → ₩27,000
- ⑤ Industrial accidentnot on the payslip · all employer. Total ₩291,522 · 9.72%
Most people multiply long-term care by pay; it multiplies the health premium. Rates apply to monthly remuneration, pay less tax-free items, so if gross × rate differs, a tax-free item was excluded. Not knowing, you argue with the company over a mistake or miss a rate change.
Step ② The ceiling and floor are where the ratio gap in the opening comes from. The national pension multiplies the standard monthly income by the rate, with a ceiling of ₩6.59M and a floor of ₩410,000. No pension attaches above the ceiling, so ₩6.59M gives ₩313,025 and ₩7M and ₩10M give the same. ₩7M totals ₩660,743, 9.44%; ₩10M totals ₩809,765, 8.1%. Health insurance has a far higher ceiling and tracks pay. Below ₩410,000, ₩410,000 is the base. Not knowing, you budget wrongly or learn late that your pension will be small.
What the payslip shows is half.
- Employer pays the samepension · health · long-term care · employment (unemployment benefit). On ₩3M the employer also pays ₩291,522
- Employer-only, two itemsemployment stability and skills development · industrial accident (industry rate · all employer)
- Employment costpay + a little over 10%
'We pay it for you' means paying the employer's share, which is where most people get confused. Not knowing, you lose all five lines when switching to freelance; knowing the employer's burden widens the negotiation, and tax-free items are cheaper for the employer too.
Step ④ Next year the first line rises. From 2026 the rate climbs 0.5 points a year to 13% in 2033, and from 1 January 2027 it is 10%, so the employee share goes from 4.75% to 5%. On ₩3M, ₩142,500 becomes ₩150,000, ₩7,500 more, for a total of ₩299,022, and the employer's share rises with it. Health and long-term care rates change at year-end and the ceiling in July, so the same pay moves as the year turns. Not knowing, you blame the company or leave ₩7,500 out of the budget. The five-line check: ① pension, standard monthly income × 4.75% with the ₩6.59M ceiling; ② health, pay × 3.595%; ③ long-term care, health premium × 13.14%; ④ employment, pay × 0.9%; ⑤ industrial accident must not appear on your payslip. With five matching lines the check is done; ask payroll only about a line that does not match.
All four steps are passed: five rates, ceiling and floor, the employer's share, 10% next year. 9.72% on ₩3M and 8.1% on ₩10M came down to one ceiling. Not knowing the fifth line leads to disputes, not knowing the ceiling miscounts the pension, not knowing the employer's share loses money. Two things to do now: check this month's five lines against the rates, and put the ₩7,500 rise in the first line into the January 2027 budget. Rates and the ceiling change yearly and industrial accident varies by industry, so check with payroll or the agencies. Not four but five lines, not the rate but the ceiling, and only reading the five lines separately shows which one is off.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
National Pension Act Article 88 · Enforcement Decree Article 5 (Contribution rate · Ceiling and floor)
In force 2026 rate · ceiling ₩6.59M (checked 2026-09-05)
Contribution rate 9.5% (workplace members 4.75% each for employee and employer). Standard monthly income ceiling ₩6.59M, floor ₩410,000.
What this means
No pension attaches above the ceiling, so the ratio falls. The pension is the only one of the four with such a low ceiling.
National Health Insurance Act Article 73 · Long-Term Care Insurance Act Article 9 (Health rate · Long-term care premium)
In force 2026 rates (checked 2026-09-05)
Health insurance rate 7.19% (workplace members half each). The long-term care premium is the health premium times the long-term care rate (13.14%).
What this means
The fifth line is the tail of health insurance. It multiplies the health premium.
Employment and Industrial Accident Insurance Premium Collection Act Article 13 (Burden of premiums)
In force 2026 rates (checked 2026-09-05)
Unemployment benefit premiums are split half and half (0.9% each). Employment stability and skills development premiums and industrial accident premiums are borne entirely by the employer.
What this means
The 0.9% on the payslip is half, and industrial accident is entirely on the employer, so it never appears.
National Pension Act Addenda Article 4 (promulgated 2025-04-02, yearly contribution rates)
In force 2027-01-01 (the 2027 rate)
9.5% in 2026, 10% in 2027, then 0.5 points a year to 13% in 2033.
What this means
The first line rises ₩7,500 from January 2027. Budget for it in advance.
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.
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Frequently asked
Why is long-term care deducted separately?
Under the Long-Term Care Insurance Act it is collected with health insurance by multiplying the health premium by the 13.14% long-term care rate. Multiplying pay instead of the health premium is the common mistake.
Why is the ratio lower on higher pay?
Only the national pension has a ceiling, ₩6.59M of standard monthly income, above which no pension attaches. On ₩7M and ₩10M the pension is the same ₩313,025.
I multiplied gross by the rates and it differs from my payslip.
Rates apply to monthly remuneration, pay less tax-free items. If a tax-free meal allowance is excluded, the figure is smaller than gross × rate.
How much does the employer pay?
The same as the employee for pension, health, long-term care and employment (unemployment benefit), plus employer-only employment stability and skills development and industrial accident. Employment cost is pay plus a little over 10%.
What if pay is under ₩410,000?
The pension floor is ₩410,000, so ₩410,000 is the base.
How much does it rise in 2027?
The pension goes to 10%, the employee share to 5%. On ₩3M, ₩142,500 becomes ₩150,000, ₩7,500 more, for a total of ₩299,022. The employer's share rises too.
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.