What a 2.3 million won hagwon contract actually pays over 12 months
At 2026 contribution rates, a 2.3 million won salary lands close to 2,076,000 won a month after the four mandatory payroll deductions, plus one month's severance and, for eligible nationalities, a pension refund when you leave.
Park English2026-09-233 min read
Every teacher we've placed reads the number on the contract, does the exchange-rate math in their head, and assumes that's what shows up in the bank. It isn't. Four things come out before you see a won, and one thing gets added back later if you finish the year.
Here's what actually happens to a 2,300,000 won monthly salary, using the rates set for 2026:
| Deduction | 2026 employee rate | Approx. amount |
|---|---|---|
| National Pension | 4.75% | ~109,250 won |
| Health insurance | 3.595% | ~82,685 won |
| Long-term care insurance | 0.9448% of income (calculated as a share of the health line) | ~10,900 won |
| Employment insurance | 0.9% | ~20,700 won |
| Income tax + local tax | varies by nationality and treaty status | 0 to a modest amount |
The health insurance policy committee decided on the 2026 rate of 7.19%, an increase of 0.1 percentage points from this year, split evenly between you and your school, so your share is 3.595%. The long-term care insurance rate rose from 0.9182% in 2025 to 0.9448% in 2026, and it's charged as a percentage of your health insurance premium rather than your salary directly, a small detail that trips up anyone trying to check their own payslip by hand. On pension, the 2026 employee share is 4.75%, with the school matching another 4.75%, following a rate hike that's the first step in a longer schedule of annual increases. Employment insurance has held at a combined 1.8% (0.9% each) for a few years now, according to payroll calculators that track the Ministry of Employment and Labor's published rate; we'd still tell you to check moel.go.kr yourself before treating that as gospel, since we couldn't pull the ministry's own current notice this round.
Add those four lines up on a 2,300,000 won salary and you're looking at roughly 223,000 won in deductions before tax, leaving something close to 2,076,000 won. Then income tax and local tax come off, and this is the line that swings hardest. Teachers from a handful of countries with a tax treaty with Korea can claim an exemption on teaching income for a limited period, which can push that line close to zero. Teachers without a treaty exemption pay standard withholding, small at this salary level, but not nothing. Confirm which category you're in with your school's accountant or the local tax office; it genuinely varies by nationality.
Severance. Complete one full year on a continuous contract and Korean labor law entitles you to severance pay equal to roughly one month's average wage, paid within 14 days of your last working day. It doesn't show up until the contract ends. If your contract is split into back-to-back short terms rather than one continuous year, ask directly whether that counts. Get it in writing before you sign, not after.
Pension refund. The pension contributions you pay every month aren't gone. When you leave Korea for good, citizens of eligible countries, including the US, Canada and Australia, can apply to the National Pension Service for a lump-sum refund of both their own contributions and the school's matching share. Eligibility depends on nationality, and some passports (for example the UK) don't qualify. Check your specific situation with NPS before you count on that money.
Housing. Most hagwon contracts either provide an apartment or pay a housing allowance instead. Which one leaves you further ahead depends on the city and the apartment on offer, not something a table can settle.
The honest version: the contract number is a starting point. Ask for a sample payslip before you sign, and check it against your first real one.