Korea's Four Major Insurance for Foreign Workers: NHIS,…

What are Korea’s four major insurances?

Korea’s 4대보험 (sa-dae-boheom) means four mandatory social insurance schemes that nearly every employee in Korea joins. These cover health care, retirement pension, unemployment benefits, and workplace injuries. According to the National Health Insurance Service, foreign employees with a work visa are generally required to enroll on the same terms as Korean nationals once they sign an employment contract.

The four programs are: National Health Insurance (Gungmin Geongang Boheom), National Pension (Gungmin Yeongeum), Employment Insurance (Goyong Boheom), and Workers’ Compensation Insurance (Sanjae Boheom). The first three are split between employee and employer. Workers’ Compensation is paid only by the employer.

Understanding these deductions matters because they cut your take-home pay by roughly 9 percent. They also unlock benefits like subsidized hospital visits, unemployment payments, and pension contributions you may receive back when you leave Korea.

NHIS foreigners registration

Who must enroll? Foreigner four major insurance enrollment Korea rules

Foreign workers on most employment visas must enroll in all four insurances once they start work at a Korean company. Per the Korea Immigration Service and the Ministry of Employment and Labor, enrollment is automatic through the employer within 14 days of the contract start date.

Visa categories typically requiring enrollment include:

• E-1 to E-7: Professionals, language instructors, specialty workers
• E-9: Non-professional employment (EPS workers)
• D-8: Corporate investors employed by their own company
• F-2, F-4, F-5, F-6: Long-term residents with work rights
• H-2: Working visit

“All employees of workplaces with one or more workers, regardless of nationality, are subject to compulsory enrollment in National Health Insurance.” - National Health Insurance Service

D-2 (student) and D-4 (training) visa holders are usually NOT enrolled through the workplace category, since they are not full-time employees. They instead join NHIS as residents (foreigner long-stay enrollment, mandatory after six months). D-10 (job seeker) visa holders also fall under the resident category until they sign a work contract.

Foreign employee social insurance Korea exemption: who can opt out?

Some foreign workers can skip the National Pension portion if their home country has a totalization agreement (social security treaty) with Korea. According to the National Pension Service, these agreements prevent double contributions for workers temporarily posted to Korea.

Countries with full pension exemption agreements (partial list):

• United States, Canada, United Kingdom, Germany, France
• Japan, China, India, Australia, Brazil
• Czech Republic, Hungary, Poland, Spain, Italy

To claim the exemption, you need a Certificate of Coverage from your home country’s social security agency. Submit it to your Korean employer’s HR team, who forwards it to the National Pension Service. Without this certificate, the standard 4.5% deduction applies.

Note: This exemption applies only to National Pension. NHIS, Employment Insurance, and Workers’ Compensation generally still apply, with limited exceptions for short-term postings under specific bilateral arrangements.

National Pension lump-sum refund foreigners

Four major insurance deduction foreigners Korea: how much is taken from your paycheck?

The combined employee deduction for the four major insurances is roughly 9 percent of your monthly gross wage. The employer pays a similar amount on top, plus the full Workers’ Compensation premium. According to the National Tax Service, these contributions are deducted before income tax calculation.

Here is the 2026 rate breakdown for employees:

*Long-term Care Insurance is calculated as 12.95% of your NHIS premium, not your wage directly.

Example calculation: A foreign English teacher (E-2 visa) earning 3,000,000 KRW per month would see approximately:

• NHIS: 106,350 KRW
• Long-term Care: 13,773 KRW
• National Pension: 135,000 KRW (unless exempt)
• Employment Insurance: 27,000 KRW
• Total deduction: ~282,000 KRW (9.4%)

If the worker has a US Certificate of Coverage, they skip the 135,000 KRW pension deduction, lowering the total to about 147,000 KRW.

Employer foreigner insurance registration Korea: the enrollment process

The employer handles all paperwork. Per the Government24 English portal, the process happens automatically when the company submits the new-hire report to the four insurance agencies. As a foreign employee, you usually only need to provide your Alien Registration Card (ARC), passport copy, and bank account for premium auto-debit.

Employer responsibilities include:

1. Acquisition report within 14 days of hire (jukseo-shingo)
2. Calculating monthly premiums based on the agreed wage
3. Withholding employee share from monthly payroll
4. Remitting combined premiums to each agency by the 10th of the following month
5. Loss report within 14 days when the employee leaves

If your employer fails to enroll you, you can file a complaint with the relevant agency. The Ministry of Employment and Labor handles Employment Insurance and Workers’ Compensation disputes. NHIS and National Pension have their own complaint channels at their district offices.

NHIS enrollment status check foreigners

Keep your monthly payslip. It serves as proof of enrollment and is often required for visa extensions at HiKorea, bank loans, and apartment leases.

Foreigner social insurance coverage types Korea: what you actually get

Each of the four insurances pays for different situations. Knowing what is covered helps you use the benefits properly.

National Health Insurance (NHIS): Covers about 60~70 percent of hospital and clinic costs after the patient co-payment. Includes prescription drugs, dental work (limited), and annual health checkups. Major surgeries and cancer treatment receive higher coverage (up to 95 percent) through the special calculation system.

National Pension (NPS): After 10 years of contributions, you can receive monthly pension payments from age 65. If you leave Korea before that, you may withdraw a lump-sum refund (ban-hwan-il-shi-geum) at the airport or by mail, but only if your home country has a refund agreement with Korea. Citizens of the US, Canada, and many others qualify; Chinese and several other nationalities currently do not.

Employment Insurance: Pays 60 percent of your average wage as unemployment benefit if you involuntarily lose your job, capped at 66,000 KRW per day in 2026. You need at least 180 days of contributions in the past 18 months. Voluntary resignation usually disqualifies you. Foreign workers can claim this benefit if eligible, except certain visa categories (E-9 EPS workers have restricted access).

Workers’ Compensation: Covers medical costs, lost wages (70 percent of average wage), and disability/death benefits for workplace injuries or occupational diseases. The employer pays the full premium, and the rate varies from 0.7 percent (offices) to 18.6 percent (mining, construction). According to the Korea Workers’ Compensation & Welfare Service, claims must be filed within three years of the incident.

Common questions and tips for foreign workers

Make sure your name on the four insurance accounts matches your ARC exactly. Discrepancies cause problems when claiming benefits or filing for the pension lump-sum refund. The Korea Immigration Service recommends updating both your ARC and insurance records together if you change your address or marital status.

If you switch jobs, the four insurances continue automatically as long as the new employer files the acquisition report. There is no gap in NHIS coverage during a same-month transition. However, during longer unemployment, you should switch to the regional NHIS subscriber category (jiyeok-gabipja) and pay premiums yourself based on assessed income and property.

For the pension lump-sum refund when leaving Korea, prepare:

• Passport with valid departure stamp
• ARC return receipt or copy
• Bank account information (overseas account works)
• Application form (Form 18) from the National Pension Service

Processing takes 2~4 weeks. The refund is taxable in some home countries, so check with a local tax advisor.