What exactly is 4대보험 (four major insurances) and how does it affect my paycheck?
I just started my first full-time job in Korea and noticed that my actual paycheck is quite a bit less than my contract salary. My Korean coworker mentioned something called 4대보험 being deducted automatically. I want to understand what each insurance covers, how much is taken from my salary, and whether I can get any of it back when I eventually leave Korea.
1 Answer
The four major insurances are National Pension (about 4.5% of your salary), National Health Insurance (about 3.5%), Employment Insurance (about 0.9%), and Industrial Accident Insurance (paid entirely by your employer so it does not affect your paycheck). Your employer matches your contributions for pension and health insurance, so the total deduction from your side is roughly 9% of your gross salary.
The good news for foreigners is that National Pension has a lump-sum refund system. When you leave Korea permanently, you can apply at the National Pension Service to get back most of what you paid in, usually within a few months of departure. Some countries have pension agreements with Korea, so the rules may vary depending on your nationality. Health insurance covers you at any hospital or clinic in Korea with a 30% copay, which is honestly a great deal. Employment insurance gives you access to unemployment benefits if you lose your job involuntarily. You can check your exact deductions on your pay stub, which your company should provide monthly.