Probationary Period in Korea: Salary, Dismissal & Social Insurance – Foreign Workers' Complete Guide

What Is a Probationary Period?

A probationary period is a trial employment period during which the employer evaluates whether a newly hired worker is suited for the job, and the worker learns the duties of the position. The concept is not separately defined in statute, but the Labor Standards Act (근로기준법) and the Minimum Wage Act (최저임금법) both provide special rules for probationary workers, making this period highly significant in practice.

Can Wages During a Probationary Period Be Set Below the Minimum Wage?

This is the most commonly misunderstood point. Under Article 5, Paragraph 2 of the Minimum Wage Act (최저임금법 제5조 제2항), a reduction of up to 10% of the minimum wage is permitted for workers on probation. However, all of the following conditions must be met:

• The probationary period must be within 3 months.
• The labor contract must be for a term of 1 year or more (fixed-term or regular employment).
• Workers in simple manual labor positions are not eligible for the reduction (occupations classified under Major Category 9 of the Korean Standard Classification of Occupations).

The 2026 minimum wage is 10,320 won per hour; with the reduction applied, the minimum hourly rate is 9,288 won. On a monthly basis (based on 209 hours), the floor is approximately 1,941,192 won. Paying below this amount constitutes a violation of the Minimum Wage Act.

Note: Your employment contract may specify terms more favorable than these statutory minimums — always check your contract.

Can an Employer Freely Dismiss an Employee During the Probationary Period?

Many employers mistakenly believe they can dismiss a probationary employee at any time. This is not correct.

Within the first 3 months of probation, the advance notice obligation under Article 26 of the Labor Standards Act (근로기준법 제26조) — 30 days' prior notice or payment of 30 days' ordinary wages — is waived. However, this is merely a procedural exception; it does not mean dismissal itself is unrestricted.

The Supreme Court has held that refusing to confirm a probationary employee as a regular hire also constitutes dismissal, and that there must be an objective and reasonable reason for doing so (Supreme Court Decision 2006다42683). Ending a probationary period simply because the employer "doesn't like" the employee may be ruled an unfair dismissal (부당해고).

If the probationary period exceeds 3 months, both the advance notice obligation and the requirement of just cause apply in exactly the same way as for regular employees.

Probationary Period and the 4 Major Social Insurances

Regardless of probationary status, enrollment in the 4 major social insurances becomes mandatory immediately upon signing a labor contract. The key insurance contribution rates as of 2026 are as follows:

• National Pension (국민연금): Total rate 9.5% (employee's share: 4.75%)
• Health Insurance (건강보험): 7.19% (employee's share: 3.595%) + Long-Term Care Insurance separately
• Employment Insurance – Unemployment Benefits (고용보험 실업급여분): 1.8% (employee's share: 0.9%)
• Industrial Accident Compensation Insurance (산재보험): Fully borne by the employer

Any workplace that refuses or delays enrollment in the 4 major social insurances on the grounds of probationary status is acting illegally. In such cases, you may report the employer to the Korea Workers' Compensation & Welfare Service (근로복지공단) or the National Health Insurance Service (국민건강보험공단).

Probationary Period Checklist

If you are a probationary worker, make sure to confirm the following before starting work:

1. Whether the probationary period is explicitly stated in the labor contract — Verbal agreements are difficult to prove in a dispute.
2. Whether the conditions for a wage reduction during probation apply to you — If you are in a simple manual labor position, any reduction is itself illegal.
3. Conditions for conversion after probation — Confirm the evaluation criteria and the timing of the conversion decision in writing.
4. Whether you have been enrolled in the 4 major social insurances — Check that the eligibility acquisition report has been filed after you start work.

If you want to estimate your expected take-home pay during your probationary period, try the salary calculator at Workbear (workbear.kr). It automatically calculates the 4 major insurance contributions and taxes, so you can easily check your net pay based on your probationary wage. If you need to review whether your contract terms are lawful, 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.