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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Employees at Samsung Electronics are expected to face significantly higher income taxes and national health insurance premiums as large-scale performance bonuses are anticipated.
Industry estimates suggest that applying the current 7.19% premium rate to special bonuses for the company’s Device Solutions (DS) division could generate approximately KRW 2.26 trillion in health insurance contributions. The estimate assumes operating profit of KRW 300 trillion and bonus payouts equivalent to 10.5% of that amount.
Because premiums are calculated annually based on total compensation, the impact will extend beyond a one-time increase. For example, a mid-level employee earning around KRW 700 million annually could pay roughly KRW 50 million to KRW 56 million in premiums, about five times higher than before.
Meanwhile, SK Hynix is also expected to issue sizable bonuses, further increasing overall contributions.
The surge in bonus-driven premiums is likely to provide a meaningful boost to South Korea’s national health insurance system, which faces projected deficits later this decade, though it will also significantly increase the financial burden on employees.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065607481996657
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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