Year-End Tax Settlement Refund Date 2026: When and How Foreign Workers in Korea Get Paid
Year-End Tax Settlement Refund Date: Exactly When Is It?
One of the most common questions among salaried workers at the start of each year is: when exactly is the year-end tax settlement (연말정산) refund paid? Often called the "13th month's salary," many workers eagerly anticipate the refund but are unsure precisely when it will appear in their accounts. Below is a complete summary of the refund timing and procedure for 2026.
Year-End Tax Settlement Schedule at a Glance
Under Article 137 of the Income Tax Act (소득세법 제137조), the withholding agent (the company) is required to settle taxes when paying February wages each year.
- January: National Tax Service Hometax (hometax.go.kr) "Year-End Settlement Simplified Service" opens (typically around January 15); employees collect deduction documents.
- Early–mid February: Employees submit deduction application forms and supporting documents to the company.
- Late February: The company completes the settlement and submits the Withholding Tax Return (원천징수이행상황신고서) to the competent tax office.
- February or March payday: Refund is paid out, or additional tax is deducted.
In short, most salaried workers receive their refund on the February or March payday. However, depending on the company's payroll date and how quickly the settlement is processed, payment may be delayed until after March.
Note for foreign workers: Your employment contract may specify a different payroll date; the statutory obligation is to settle by the February pay period, but actual receipt depends on your employer's schedule.
How Is the Refund Paid?
The National Tax Service does not deposit the refund directly into employees' accounts. Instead, the company (withholding agent) recovers the excess tax it previously remitted to the NTS and pays it to employees together with their wages.
The company either offsets the refund amount against the following month's withholding tax or applies to the tax office for a refund and then passes it on to employees. Accordingly, the exact payment date may vary depending on the company's financial situation and tax-processing schedule.
How to Check Your Refund Amount
You can check your estimated refund through the following channels:
- NTS Hometax (hometax.go.kr) → Year-End Settlement Simplified Service → Estimated Tax Calculation
- Sontax (손택스, mobile app) → Year-End Settlement menu
- Company payroll system → Year-End Settlement results inquiry
Once the refund is confirmed, you can verify whether it has actually been processed via the "Refund Inquiry" menu on Hometax.
Reasons Your Refund May Be Delayed or Smaller Than Expected
- Missed deduction items: Omitting medical expenses, education expenses, donations, monthly rent tax credits, etc. reduces the refund amount.
- Changes in dependents: Marriage, childbirth, or changes in a parent's income can alter who qualifies as a dependent, affecting the settlement result.
- Company processing delays: Small businesses often handle settlement through a tax agent, which can push payment to March or later.
- Additional tax due: If the amount withheld throughout the year was less than the actual tax owed, you will owe additional tax rather than receive a refund.
What to Do If You Have Not Received Your Refund
If the company fails to pay the refund or delays it excessively, you can contact the competent tax office or call the Ministry of Employment and Labor Customer Consultation Center at 1350 (no area code required). Because the refund is money connected to the compensation for work performed, you should explore available remedies if it is withheld without justification.
Calculate Your Actual Take-Home Pay in Advance
Knowing your actual monthly take-home pay alongside your year-end tax settlement refund is a great help for financial planning. Use the Annual Salary Take-Home Pay Calculator at Workbear (workbear.kr) to easily calculate your net pay after the four major social insurance contributions and income tax. Try it together with your year-end settlement results.
This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.
Frequently Asked Questions
When does the year-end tax settlement refund arrive in my bank account?
Generally, the company pays it to employees with the February or March paycheck. The most common method is for the company to include the refund amount in the next paycheck after submitting the Withholding Tax Return 원천징수이행상황신고서 to the National Tax Service. The exact payment date varies by company, so check with your payroll department.
Why is my refund very small, or why do I owe additional tax instead?
Year-end tax settlement is the process of reconciling the tax withheld throughout the year with the actual tax owed. If deductible items medical expenses, education expenses, donations, etc. are few, or if there have been changes in dependents, additional tax may be due. Conversely, more deductions mean a larger refund.
What should I do if my company does not pay my year-end tax settlement refund?
As the withholding agent, the company is obligated to pay the refund amount to employees. If payment is delayed or refused, you can report it to the competent tax office. If the refund can be regarded as unpaid wages or money linked to employment, you may also consider filing a complaint with the Ministry of Employment and Labor.
How do I receive my year-end tax settlement refund if I have already resigned?
For mid-year resignees, the company conducts a mid-year tax settlement 중도정산 at the time of resignation. If there are additional deductions to claim afterward, you can apply for a refund directly through the National Tax Service's Hometax 홈택스 during the comprehensive income tax filing period in May of the following year.