An update to the Labor Standards Act that entered into force on 19.11.2021, added new Requirements for the preparation of Payslip for employees South Korea.

In accordance with the new guidelines, an employer is required to provide its employees, Payslip, which contains at least the following information:

  1. Employee details, including name, date of birth and / or employee's number
  2. Date of monthly salary payment
  3. Amount of total salary to be paid
  4. The amount of each wage component, such as base salary, bonuses and others.
  5. The method of calculating the salary according to the type of employment, such as days, hours and the like.
  6. Details of the wage reduction items and their amount

The payslip can be provided in printed form or electronically such as email, mobile SMS message, cloud based or via chat message.

The new provisions apply to any type of employer regardless of the number of employees. According to the new guidelines, an employer who does not produce payslips as required is subject to a fine of up to 5 million Korean won.

In addition, in order to make it easier for businesses to prepare the payslip in accordance with the new guidelines, the Ministry of Employment and the Labor will provide a free software for the production of payslips that comply with the new guidelines.

Payroll services in Korea is part of the accounting and bookkeeping services, therefore employers that wish to ensure their compliance with the local regulations are welcome to contact us

Affected services: Payroll Service in Korea, Employer of Record in Korea, Accounting and Bookkeeping Services