Daily workers deduct ₩150,000 per day as earned income deduction. The rest is taxed at 6%, then a 55% tax credit applies. In effect, income tax is 2.7% of the amount above ₩150,000.
Local income tax is 10% of income tax. A ₩200,000 daily wage means ₩1,350 of income tax and ₩135 of local income tax per day.
Income tax under ₩1,000 is not withheld, and this is checked per payment. Paid daily, tax is ₩0 up to a ₩187,037 wage. Paid in a lump sum, the total is tested and tax can arise.
Daily workers also join employment insurance (0.9%). Working 8 days or more, or 60 hours or more, a month at one workplace brings National Pension and health insurance.
Daily wage income is taxed separately and finishes at withholding, so it is not added to the May comprehensive income tax return.
FAQ
How much tax is on a ₩200,000 daily wage?
₩1,350 of income tax and ₩135 of local income tax, ₩1,485 in total. Employment insurance of 0.9% (₩1,800) is separate.
Is there no tax on ₩150,000 a day?
Correct. Up to ₩150,000 a day is covered by the earned income deduction, so income tax is ₩0. Employment insurance may still apply.
Do daily workers file in May?
If daily wages are your only income, withholding finishes the tax and you do not need to file.
Worked example
Example: for a ₩200,000 daily wage over 20 days paid at once, daily income tax is (₩200,000 − ₩150,000) × 6% × 45% = ₩1,350, or ₩27,000 for 20 days. Local tax is ₩2,700 and 0.9% employment insurance is ₩36,000, so you receive ₩3,934,300. At ₩180,000 a day, income tax is ₩810, so it is ₩0 if paid daily, but ₩16,200 is withheld if 20 days are paid together.
Common mistakes
After 3 months or more at the same workplace (1 year or more in construction), you are treated as a regular employee and go through year-end settlement.
A daily wage of ₩150,000 or less has no income tax, but employment insurance may still apply.
Daily wage income is taxed separately and is not added to the May return, even with other income.