Mitra KoreaLiving on the minimum wage for one month: how much is left after insurance, tax and dormitory costs
In 2026, after insurance and tax are taken out of the minimum monthly wage, about 2,020,000–2,040,000원 is left (example for a Nepali worker).
Quick summary
- The 2026 minimum wage is 10,320원 per hour. For 40 hours a week, this is 2,156,880원 per month.
- From this monthly pay, your employer takes out health insurance, long-term care insurance, employment insurance, income tax and local income tax. If you are from Nepal, as a rule, National Pension (국민연금) is not taken out.
- In the example below (Nepali worker, no overtime), about 2,020,000–2,040,000원 goes into your bank account. The amount depends on whether you joined employment insurance (the unemployment benefit part).
- Your employer can take out a dormitory fee only if it is an amount you agreed to in writing.
- The 2027 minimum wage has been announced: 10,700원 per hour, 2,236,300원 per month. It applies from January 1, 2027.
Who is this for?
- People who work 40 hours a week and do almost no overtime, night work or holiday work
- People whose pay is near the minimum wage and who ask, "Why is so little money coming into my bank account?"
- People who want to plan how much to send home and how much to save
If you do a lot of overtime, your monthly pay is higher, and your insurance and tax also go up. First, check that your pay meets the minimum wage in 2026 minimum wage and calculating your pay.
Example: money taken out of your monthly pay
Example conditions: Nepali worker, 2,156,880원 per month (basic pay only, no tax-free allowances), 1 person counted as a dependent (yourself only), income tax set at 100%. If these conditions change, the amounts also change.
| Item | How it is calculated | Amount (about) |
|---|---|---|
| Health insurance | Half of 7.19% (3.595%) | 77,500원 |
| Long-term care insurance | Half of 0.9448% | 10,200원 |
| Employment insurance | 0.9% (only if you joined the unemployment benefit part) | 19,400원 or 0원 |
| National Pension | Nepal is excluded | 0원 |
| Income tax | Simplified tax table, 2,150,000–2,160,000원 range, 1 person | 24,340원 |
| Local income tax | 10% of income tax | 2,430원 |
| Total deductions | About 133,870원 (about 114,470원 without employment insurance) | |
| Money into your bank account | 2,156,880원 − total deductions | About 2,023,000원 (about 2,042,400원 without employment insurance) |
- Because of how the last digits are rounded, insurance amounts may be a few tens of won different from your payslip.
- Income tax for the whole year is calculated again in the next year (this is called 연말정산, year-end tax settlement). So in some months more may be taken out, or you may get some money back. See the year-end tax settlement guide.
- For other nationalities, such as Vietnam, Indonesia, Cambodia, Sri Lanka and Thailand, National Pension may be taken out. Details by nationality are in Reading your payslip line by line.
Rules for taking out dormitory and food costs
- When you sign the work contract, the company must tell you in advance about the dormitory and how much you will pay.
- To take housing and food costs out of your pay, the company needs your written consent. Check that the consent form is in your own language.
- Costs that change with use, like electricity, gas and water, should as a rule be settled later based on what you actually used.
- The 2017 rule on collecting housing and food costs was cancelled on November 27, 2023. Now there is no fixed maximum percentage. The amount is agreed and written in the contract.
- A dormitory and meals that the company gives you directly (not in cash) do not count toward the minimum wage.
For detailed standards, see Dormitory standards and rules for deducting housing and food costs.
Making a monthly plan (example)
The spending amounts in the table below are made-up examples to explain the idea. They are not averages. Put in your own amounts and calculate again.
| Step | Item | Example (made-up) | My amount |
|---|---|---|---|
| ① | Money that came into your bank account | 2,023,000원 | |
| ② | Dormitory fee (amount agreed in writing; 0 if already taken out of your pay) | 150,000원 | |
| ③ | Food and daily necessities | 250,000원 | |
| ④ | Mobile phone bill | 30,000원 | |
| ⑤ | Transport and other | 70,000원 | |
| ⑥ | Emergency money (hospital costs, etc.) | 100,000원 | |
| ⑦ | Amount you can send home or save = ① − (② to ⑥) | 1,423,000원 |
Steps
- Compare your payslip and your bank account. Check that total pay − total deductions is the same as the amount paid into your account.
- Check each deduction one by one. If there are items not in the table above (fines, work clothes costs, etc.), see the illegal wage deductions guide.
- Take out fixed costs first. First count the costs that are the same every month, like the dormitory fee, phone and transport.
- Keep emergency money separate. This helps you get by if you suddenly get sick or have less work.
- Decide how much to send home or save with the money left. To compare money transfer companies, see Comparing overseas money transfers. For saving, see the savings accounts and deposits guide.
What to prepare
- 급여명세서 (payslips) for the last 3 months
- Bank account deposit records
- 근로계약서 (work contract) — the part that shows the dormitory and food amounts
- Consent form for deducting housing and food costs (if you have one)
Be careful
- Always get your payslip. The company must give you a payslip every time it pays you. Without it, you cannot check if the deductions are correct.
- If a dormitory fee you did not agree to was taken out, you can make a claim for unpaid wages (임금체불). Call 1577-0071 or 1350 for advice.
- "Why is employment insurance being taken out?" E-9 workers pay the worker's share (0.9%) only if they applied for the unemployment benefit part. If you do not remember applying, ask your company.
- Check your January 2027 payslip. From January 1, 2027, the hourly wage of 10,700원 applies. Hours you work from January must be paid at the new rate.
Frequently asked questions
Q. My friend works at the same company, but different money comes into their bank account. A. The amount changes if your nationality (National Pension), employment insurance membership, overtime hours or dormitory fee are different. Compare your payslips line by line.
Q. Is income tax 24,340원 every month? A. Only under the example conditions in this guide. It changes if your pay changes or if the number of dependents is different. Check the exact amount on your payslip and the National Tax Service (국세청) simplified tax table.
Q. How much will my monthly pay be in 2027? A. For 40 hours a week, it is 2,236,300원 per month (10,700원 per hour × 209 hours). The 2027 insurance rates must be checked separately, so calculate your take-home pay again with your January payslip.
Q. Is it OK for the company to take the dormitory fee out of my pay in advance? A. Yes, if it is an amount you agreed to in writing. If you never agreed, or if more than the agreed amount is taken out, get advice.
Where to get help
| Organization | Phone | What they help with |
|---|---|---|
| 외국인력상담센터 (Foreign Workers Counseling Center) | 1577-0071 | Many languages, including Nepali. Advice on payslips and deductions. Every day of the year, 09:00–18:00 (on Saturdays and public holidays, staff on duty only) |
| 고용노동부 (Ministry of Employment and Labor) Customer Counseling Center | 1350 | Advice on minimum wage and deductions |
| 국민건강보험공단 (National Health Insurance Service) | 1577-1000 | Check health and long-term care insurance premiums |
| 국민연금공단 (National Pension Service) | 1355 | Check whether National Pension applies to you |
| 외국인종합안내센터 (Immigration Contact Center) | 1345 | 3-way interpretation for phone calls with public offices. Nepali: weekdays 09:00–18:00 |