For daily workers paid by the day, Korean income tax is withheld at payment and that’s the end of it. Income Tax Act Article 14(3) keeps daily workers’ wages out of global income, and Article 134(3) has them taxed when paid. The sum has three steps: take 150,000 won a day off the pay (Art. 47(2)), apply 6% (Art. 129), then credit 55% of that (Art. 59(3)). If the result is under 1,000 won it isn’t collected (Art. 86). On a day’s pay of 200,000 won that’s 1,350 won of income tax and 135 won of local income tax.
1. (Day’s pay − 150,000) × 6% × (1 − 55%) — no tax up to 150,000 won a day.
2. Under 1,000 won, not collected — 187,000 won a day gives 999 won, so 0; 188,000 gives 1,026.
3. Local income tax of 10% of that income tax is withheld too (Local Tax Act Art. 103-13).
Calculator
Updates as you type. Tax = (day’s pay − 150,000) × 6% − 55% of that; won fractions rounded down (our method). Income tax under 1,000 won is not collected. Local income tax is 10% of the income tax withheld.
Five provisions
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Income Tax Act Art. 47(2) | Notwithstanding paragraph (1), the deduction for a daily worker is 150,000 won per day | Revised 31 Dec 2018 |
| Art. 129(1) item 4 | Basic rates for wage income, but 6/100 for daily workers’ wages | Withholding rate |
| Art. 59(3) | When daily workers’ wages are withheld under Art. 134(3), 55/100 of the computed tax is credited | Wage income tax credit |
| Art. 134(3) | On paying a daily worker, withhold the tax after the wage deduction, the withholding rate and the wage credit | Order of steps |
| Art. 86 item 1 | Where the withholding tax is under 1,000 won, it is not collected | Small-amount exemption |
Who counts as a daily worker is set by Enforcement Decree Article 20: people paid by the day or hour, being (1) construction workers, except those employed continuously by the same employer for a year or more and some others; (2) loading workers, except those paid regularly and some others; and (3) anyone else not employed continuously by the same employer under a contract for three months or more.
Four sums — our example
| Day’s pay (our example) | Income + local tax | Worth noting (our sum) |
|---|---|---|
| 150,000 won | 0 | Nothing taxable |
| 187,000 won | 0 | 37,000 × 6% = 2,220; credit 1,221 → 999 < 1,000 |
| 200,000 won | 1,350 + 135 won | 50,000 × 6% = 3,000; credit 1,650 |
| 300,000 won | 4,050 + 405 won | 150,000 × 6% = 9,000; credit 4,950 |
At 188,000 won, 6% of 38,000 is 2,280 won, less a 1,254 won credit leaves 1,026 won, which is over 1,000 and collected. So the line falls between 187,000 and 188,000 won; the exact won depends on how fractions are rounded, so we don’t state it (the calculator rounds down).
If several days are paid together
Article 86 asks whether “the withholding tax” is under 1,000 won. At 187,000 won paid daily, it’s 999 won each day and nothing is collected; paid as five days’ 935,000 won at once, the withholding tax at that payment is 4,995 won (plus 499 won local tax). The Act doesn’t say outright that a lump payment is judged on the total, so the calculator lets you pick either way (our reading). Check with the National Tax Service.
The 150,000 won daily deduction is special to daily workers; regular employees’ wage deduction and credit cap (Arts. 47(1), 59(2)) are different. When you need not file a return is in final return exemption.
Checklist
- ☐ Not employed by the same employer for three months or more (a year in construction)
- ☐ Payment record shows day rate, days and tax withheld
- ☐ Were several days paid at once?
- ☐ Local income tax (10%) taken too
Questions that remain
Do daily workers file a May tax return?
Article 14(3) item 2 keeps daily workers’ wages out of the global tax base, so withholding settles it.
What about social insurance?
This post covers income tax only; employment insurance and the national pension have their own rules.
Sources
- Korean law database (law.go.kr) — Income Tax Act Arts. 14, 47, 59, 86, 129, 134 — source (current text, effective 1 July 2026, Act No. 21221; checked 21 October 2026). Separate taxation, 150,000 won a day, 6% rate, 55% credit, withholding method, under-1,000 won exemption.
- Korean law database — Income Tax Act Enforcement Decree Art. 20 — source (effective 1 October 2026, Decree No. 36737; checked 21 October 2026). Who is a daily worker (construction one year, others three months).
- Korean law database — Local Tax Act Art. 103-13 — source (effective 1 July 2026, Act No. 21308; checked 21 October 2026). 10/100 of withheld income tax collected as local income tax.
- Not read. NTS rulings on lump payments; rounding rules.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- NTS Hometax — daily wage payment records.
Written on 21 October 2026. The content is from the source; the glosses are ours.
