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Easily navigate South Korea's distinct business environment with Innovare's all-inclusive EOR solutions. From detailed immigration assistance to smooth payroll management.
Navigate Japan's unique business landscape effortlessly with Innovare's comprehensive EOR solutions. From intricate immigration services to seamless payroll administration, we're your bridge to tapping into the world's third-largest economy.
Innovare South Korea, a cornerstone of the Innovare Group, empowers seamless business expansion into South Korea's thriving market. Our comprehensive EOR services leverage our deep expertise and unwavering commitment to compliance, ensuring a smooth adaptation for your venture within the local business landscape.
Expert navigation through South Korea's dynamic economy.
Streamlined processes for employment and payroll management.
Unwavering dedication to adhering to local regulations.
Specialised support for staff outsourcing in South Korea.
South Korean law mandates employers to provide a written employment contract outlining key employment terms to new hires within 30 days of their start date. This contract fosters transparency by clearly detailing job duties, work schedules, compensation, and leave entitlements, establishing a strong foundation for the employment relationship.
● Clearly define roles and responsibilities to ensure a shared understanding of performance benchmarks.
● Outline work schedules promote transparency and adherence to working hour regulations.
● Specify salary, benefits, and any allowances ensures financialtransparency.
South Korea enforces monthly salary payments within a timeframe dictated by the contract. The standard work week is 40 hours, with overtime (maximum 12 hours) pay mandatory for exceeding these hours.
South Korea operates a progressive tax system, meaning tax rates increase as income rises. Here's a breakdown of the general tax structure for reference):
South Korean labour laws grant employees various leave entitlements to promote work-life balance and employee well-being. Here's an overview of some key leave provisions:
South Korea enforces a mandatory social security program known as the National Pension System (NPS). This system provides benefits for retirement ensuring a safety net for employees.
Here's a breakdown of the key points:
● National Pension: Both employers and employees contribute to the NPS. For both, the contribution rates are 4.5% of monthly basic salary with minimum KRW 17,550 and maximum KRW 277,650.
● National Health Insurance: The NHI provides healthcare coverage where both Employer and Employee’s contribution is 4.004% of monthly salary with minimum of KRW 11,170 and maximum KRW 4,789,900.
● Employment Insurance: The employer contributes 1.15% to 1.75% while the employee contribution is 0.9%.
● Worker’s Accident Compensation Insurance: A total of 0.7% to 18.6% is contributed by the employer depending on type of industry.
Employers with 5 or more employees cannot terminate an employment contract without just cause with the burden of proof falls on the employer. Termination during maternity leave and childcare leave is also prohibited.
For fixed term contract, it cannot exceed 2 years or it will become an indefinite contract. Early termination of fixed term contract requires ad hoc compensation to employee.
Termination procedures in South Korea require adherence to specific notice periods or pay in lieu of notice and severance pay. Here's a general overview of the termination process:
● Notice Periods: Under the law, employers must give 30 days’ advance notice prior to dismissal, failure to do so, employer is obliged to pay the employee their wages in lieu for not less than30 days (i.e. dismissal allowance). Despite no regulation on employees voluntarily resigning, employees should provide a resignation letter and give decent notice.
● Severance Pay: Required for each employee who has worked for at least one year, at the equivalent of 30 days’ average wages for each year of continuous employment. Severance pay is obligatory for employees who have worked for more than one year, regardless of the reason.
South Korea boasts a highly developed technological infrastructure and a skilled workforce at the forefront of innovation. This dynamic environment creates exciting opportunities for businesses in sectors like electronics, IT, and telecommunications.
Situated in Northeast Asia, South Korea serves as a gateway to the broader region. This strategic location offers easy access to a vast consumer market, making it an attractive hub for international expansion.
The South Korean government actively promotes foreign investment through business-friendly policies and incentives. This supportive environment fosters a stable and predictable landscape for companies looking to establish a foothold in the market.
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