2023 annual salary real income summary (Excel file + table image) What is my real income?
From 250 to 100 million per year before/after tax
What will be the real wages I will receive each month?
Let’s check the minimum hourly wage in 2023 and check the real salary of my salary this year!
If you are an office worker at a company, there are some things you check every year.
One of them is thought to be the amount of real salary.
As we enter the new year, if we negotiate a new salary,
I’m also curious about the monthly real wages.
If you are new to society, why is the amount of salary different from the actual amount you receive?
I think some of you may have questions.
What is real wages?
Real income = Salary after tax
They both mean the same thing. First of all, what is the salary gap?
From salary to national pension, health insurance, employment insurance, income tax, local income tax, long-term care insurance, etc.
Amount excluding tax.
The actual amount you receive is
it’s going to be different 🙂
The reason why the real salary is different even if the salary is the same
Source: Unsplash
So, there are cases where the actual salary is different even though the salary is the same! So why is it so in this case?
1. Withholding tax rate
Withholding tax is when the person who pays income or income (withholding tax agent) pays salary or amount.
The tax that the recipient (withholding taxpayer) must pay from the amount
It is called withholding tax that is paid to the state in advance.
You can choose from 80%, 100%, and 120% of the withholding tax.
Depending on your choice, the amount you receive may vary. (The choice is made by the company)
However, for the portion of the tax that was reduced or increased through settlement at the end of the year
You may have to pay additional taxes when the settlement is made.
Because it can be refunded, the tax you pay for one year is the same.
2. Number of dependents
The number of dependents varies from person to person, and depending on the number of dependents in year-end tax settlement
Because the tax is reduced, the actual amount received is different.
(I will look into the details of dependents and personal deductions in year-end tax settlement in another article.)
Learn about dependents and personal deductions >
3. Non-taxable salary
Tax-free benefits such as meals, self-driving subsidies, additional work allowances for production workers, childcare allowances, etc.
Since it is non-taxable, you will not pay tax on it.
(We will go into more detail about tax exemption in another article.)
Learn about tax exemption >
What will change in 2023
Source: Unsplash
First, let’s look at what has changed in 2023.
The minimum hourly wage has changed.
(Based on 209 hours worked per month)
Minimum hourly wage in 2023 Minimum monthly wage in 2023 Minimum annual salary in 2023
KRW 9,620 KRW 1,914,440 KRW 24,126,960
Health insurance premiums and long-term care premiums have also risen.
Health insurance premiums increase by about 0.05%
Long-term care insurance premiums increased by about 0.54%.
(based on workers)
National pension health insurance long-term care insurance employment insurance income tax local tax
pre-tax salary
4.50% of monthly salary before tax
3.545% of health insurance premium
12.81% of unemployment benefits
0.9% Simplified Tax Based on Income Tax
10%
Actual salary receipt in 2023
Source: Unsplash
The table below shows the amount of salary earned.
This is a salary that does not include non-taxable wages based on one dependent (including yourself).
The maximum contribution for employees of the national pension is KRW 248,850, and the same applies from KRW 67 million.
Income tax was calculated at 100%.
The amount may vary depending on the company’s annual salary payment conditions and individual circumstances.
Source ZIONY._.STUDY
This is a table created using Excel.
If you need an excel file, please leave a comment 🙂