Payslips must now include all of the following:
- Name
- Date of birth or employee ID
- Pay date
- Days worked
- Gross amount
- Hours worked
- Overtime hours (if applicable)
- All receivable items (allowance, incentive, etc.)
- Formula for all pay items
- All deductible items
If the above items are not mentioned on all payslips, the following fines will be imposed:
- First time – KRW 200,000
- Second time – KRW 300,000
- Third time or more – KRW 500,000
If the payslip is not provided at all, the following fines will be imposed:
- First time – KRW 300,000
- Second time – KRW 500,000
- Third time or more – KRW 1,000,000
There are some exceptions to this new law:
- Daily workers (employees that work less than 30 days) – Identity information such as date of birth or employee ID can be excluded from the payslip
- Workers in a workplace with four or fewer employees or those who are excluded from the application of working hours – overtime, night and holiday hours can be excluded from the payslip
Interested in doing business in South Korea? Find out everything you need to know about payroll, tax, social security, employee benefits, work permits, employment law and more in activpayroll’s Guide to Doing Business in South Korea. This is available as a free PDF to download.
