Before dividing an annual offer by 12, separate monthly pay, bonus payment dates, variable compensation and retirement benefits.
Use this guide to compare the salary breakdown
The employment-contract guide covers required contract terms. This guide connects an annual offer to monthly gross pay. Gather the offer, signed contract, wage breakdown, bonus rules and a payslip for a full working month.
These fictional examples assume 12 full months of employment and satisfaction of the stated conditions. All amounts are before deductions. They do not calculate tax, insurance, individual ordinary wages or minimum-wage compliance. Reference information, not legal or tax advice.
Separate the components before comparing totals
| Contract item | What to request | Comparison check |
|---|---|---|
| Base pay and fixed allowances | Monthly amounts and payment date | Are allowances included or additional? |
| Fixed overtime allowance | Covered hours, calculation and additional settlement | A fixed amount alone does not settle all actual overtime. |
| Guaranteed bonus | Amount, payment months and eligibility conditions | Separate regular monthly pay from separate bonus payments. |
| Performance target | Whether payment is confirmed and how performance is assessed | Do not treat a target as guaranteed pay. |
| Retirement benefits or employer contributions | Applicable scheme and payment arrangement | Distinguish wages from retirement benefits; an annual figure alone does not establish that statutory obligations are satisfied. |
| Equity, benefits and expense reimbursements | Cash availability and conditions | Do not automatically add these to annual cash wages. |
Article 17 of the Labor Standards Act requires written wage components, calculation and payment methods. Request the breakdown and payment conditions rather than relying only on the headline figure.
Three fictional offers all advertised as KRW 48 million
| Item | A: fixed monthly pay | B: separate guaranteed bonus | C: performance target included |
|---|---|---|---|
| Monthly base pay | KRW 3,300,000 | KRW 3,300,000 | KRW 3,300,000 |
| Monthly fixed allowance | KRW 200,000 | KRW 200,000 | KRW 200,000 |
| Monthly fixed overtime | KRW 500,000 | None in this example | None in this example |
| Regular monthly gross | KRW 4,000,000 | KRW 3,500,000 | KRW 3,500,000 |
| Separate annual compensation | None | Guaranteed bonus: KRW 6,000,000 | Performance target: KRW 6,000,000 |
| Annual fixed cash pay | KRW 48,000,000 | KRW 48,000,000 | KRW 42,000,000 |
| Figure including target | KRW 48,000,000 | KRW 48,000,000 | KRW 48,000,000 if target is paid |
Example · Check totals and payment months
- A: (3,300,000 + 200,000 + 500,000) × 12 = KRW 48,000,000.
- B: 3,500,000 × 12 + 6,000,000 = KRW 48,000,000.
- If B pays KRW 3,000,000 bonuses in June and December, gross pay is KRW 6,500,000 in those months and KRW 3,500,000 otherwise.
- C: fixed pay is 3,500,000 × 12 = KRW 42,000,000; the KRW 6,000,000 target is not guaranteed.
Retirement benefits, welfare and expense reimbursements are excluded here. A’s fixed overtime amount is a contractual example, not a calculation of statutory overtime owed. Check actual additional-work payments for B and C as well. These figures alone do not establish which offer is better.
Check overtime and deductions separately
The Ministry of Employment and Labor’s April 2026 guidance distinguishes base pay and allowances and calls for payment based on actual overtime, night and holiday work. If a fixed overtime allowance falls short of the statutory amount for actual work, the difference must be paid. Compare the agreed hours, working-time records and calculation basis; do not assume every fixed-overtime arrangement is unlawful.
A tax-free allowance classification does not automatically mean extra cash on top of the offer. Check whether the allowance is already included in gross pay. Dividing an annual pre-tax figure by 12 does not produce take-home pay.
Compare the contract with a full-month payslip
- Check whether the payslip covers a full month, a partial month or a probation period, and confirm applicable terms.
- Match the base pay and each allowance to the monthly wage breakdown.
- Check guaranteed bonus amounts, payment months and eligibility conditions.
- Keep performance targets separate from confirmed payments.
- First reconcile gross pay, then check insurance, tax and other deductions.
Questions to send to payroll before signing
“Please separate fixed monthly pay, fixed overtime and its covered hours, guaranteed bonuses and their payment conditions, and variable performance compensation. Are retirement benefits and allowances included in the headline annual figure or additional? Please also explain how additional overtime is settled.”
Use the payslip tool to compare wage and deduction items after obtaining their amounts. It is an illustrative payslip tool, not an annual take-home-pay calculator or a contract compliance decision.