πŸ‡°πŸ‡· South Korea β€” PYKR ECP Configuration Framework

Module: PYKR | Molga: 38 | Currency: KRW | Region: APAC
Field
Detail
Statutory
NPS, NHI, LTCI, Employment Insurance, Year-End Settlement
Tax
Progressive 6-45%; Year-End Settlement (연말정산)
Key Feature
Year-End Settlement (연말정산) & Severance Pay
Pay Frequency
Monthly
Banks
Kookmin, KEB Hana, Shinhan, Woori

Korea-Specific Configuration

Chapter 4: Korean Payroll Schema

  • NPS (National Pension Service): 4.5% EE + 4.5% ER on wages up to KRW 5.9M/month
  • NHI (National Health Insurance): 3.545% EE + 3.545% ER
  • LTCI (Long-Term Care Insurance): 12.95% of NHI premium
  • Employment Insurance: 0.9% EE + 1.65% ER (general industry)

Year-End Settlement (연말정산)

  • January payroll: cumulative tax recalculation for prior calendar year
  • Deductions: basic personal deduction (KRW 1.5M/person), insurance premiums, medical expenses
  • Tax credits: earned income credit, child credit, pension contribution credit
  • Withholding refund/collection via February payroll

Severance Pay (ν‡΄μ§κΈˆ)

  • DB-type: 1 month average wage per year of service (Labour Standards Act Art. 34)
  • DC-type (IRP): monthly contribution of 1/12 annual pay to Individual Retirement Pension
  • Configure IT0267 for severance payment processing on termination

Chapter 5.5: Korean Statutory

  • Monthly withholding tax simplified method (κ°„μ΄μ„Έμ•‘ν‘œ)
  • Year-end settlement reporting to HOMETAX (κ΅­μ„Έμ²­)
  • NPS/NHI declaration: 4-insured monthly declaration
  • Labor Standards Act compliance: annual leave accrual (15 days/year after 1 year)