Probationary Period in Korea: Wages, Dismissal & Four Major Insurances — Complete Guide for Foreign Workers

What Is a Probationary Period?

A probationary period (수습기간, 試用期間) is a set period established before formal employment during which the employer evaluates a newly hired worker's job competency, aptitude, and attitude. The expression "3-month probation" is commonly used, but there is no statutory provision that directly specifies the length of a probationary period. The duration and conditions are determined by the labor contract or workplace rules.

The critical point is that a probationary period is still a formal employment relationship. Once a labor contract is concluded, all protective provisions of the Labor Standards Act (근로기준법) apply in principle — the logic that "it's probation, so exceptions apply" has no legal basis.

Wages During Probation — Minimum Wage Deductions Are Conditional

There is a common practice of reducing wages during probation, but this is permitted only when strict requirements are met. Under Article 5, Paragraph 2 of the Minimum Wage Act (최저임금법 제5조 제2항), all three of the following conditions must be satisfied to deduct up to 10% from the minimum wage:

1. A labor contract of 1 year or more has been concluded.
2. The deduction is applied within 3 months of the start of probation.
3. The position is not a simple labor occupation (occupations falling under Major Category 9 of the Korean Standard Classification of Occupations are ineligible for the deduction).

The 2026 minimum wage is 10,320 won per hour. Even where a deduction is permitted, at least 9,288 won per hour (10,320 won × 90%) must be paid. If the contract term is less than 1 year, or if the position is a simple labor occupation, the full 10,320 won per hour must be paid even during probation.

Note: Your employment contract may specify terms different from the statutory minimum — always check your contract carefully.

Dismissal During Probation — The Misconception That "Anyone Can Be Let Go"

Many employers mistakenly believe they can dismiss workers freely during a probationary period. However, the Supreme Court has ruled that the principle prohibiting dismissal without just cause under Article 23 of the Labor Standards Act (근로기준법 제23조) also applies to probationary workers (Supreme Court Decision 2006다42683, etc.).

That said, for workplaces with 5 or more employees, the advance notice obligation (30 days' prior notice or payment of 30 days' ordinary wages) is waived when the probationary period is within 3 months (Article 35, Subparagraph 3 of the Labor Standards Act, 근로기준법 제35조 제3호). This is a procedural exception only — it does not justify dismissal for an unjust reason.

If a worker has been employed for more than 3 months of probation, the advance notice obligation is reinstated and filing for unfair dismissal (부당해고) relief becomes available.

Four Major Insurances and Annual Leave — Same Rules Apply During Probation

Even during a probationary period, enrollment in the four major insurances (국민연금·건강보험·고용보험·산재보험 — National Pension, Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance) is mandatory. Enrollment must be reported from the first day of work; if the employer fails to enroll the worker, the employer is liable for administrative fines and retroactive payment of insurance premiums.

The same applies to annual paid leave (연차유급휴가). Workers employed for less than 1 year accrue 1 day of annual leave for each month of perfect attendance (Article 60, Paragraph 2 of the Labor Standards Act, 근로기준법 제60조 제2항), so workers on probation who attend perfectly may use 1 day of annual leave per month.

Checklist to Review Before Starting a Probationary Period

• Is the length of the probationary period and the applicable wage clearly stated in the labor contract?
• Is the employer demanding a minimum wage deduction despite the contract being less than 1 year?
• Are the conditions for conversion to regular employment (evaluation criteria, timing) specifically stated?
• Have you confirmed your enrollment in the four major insurances immediately after starting work?

If you want to check whether the wages you receive during probation are appropriate, try the salary take-home pay calculator at workbear.kr to see your four major insurance deductions and net pay at a glance — useful when reviewing your contract. If you feel the contract terms are unfair, the contract review feature is also available.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.