Salary Raise Simulation

No. As your salary rises into higher tax brackets, take-home pay grows proportionally less than the gross raise. This gap is shown in the 'Gross vs Net Raise' insight card — the government captures an increasing share of each additional won earned.

Korea uses a progressive income tax system. Tax rates by taxable income (as of 2026): 6% up to ₩14M, 15% up to ₩50M, 24% up to ₩88M, 35% up to ₩150M, 38% up to ₩300M, 40% up to ₩500M, 42% up to ₩1B, and 45% above ₩1B. Only income above the bracket threshold is taxed at the new, higher rate — not your entire salary.

This simulation assumes: ① a constant annual raise rate every year, ② 2026 tax rates throughout, ③ unchanged number of dependents, and ④ no non-taxable allowances. Actual salary growth depends on performance reviews, promotions, and company policy.

Income tax uses a progressive structure where rates rise at each taxable income threshold. When a salary increase pushes you into a higher bracket, the portion of income above that threshold is taxed at the new, higher rate, causing the tax increase to accelerate. As a result, the take-home growth rate is lower than the gross raise rate, and this gap becomes especially visible near bracket boundaries. The gross vs. net raise comparison card in this simulation shows the difference by bracket.

Set your target take-home first, then work backwards to find the raise rate you need. Keep in mind that negotiating a raise just below a tax bracket threshold maximizes the real impact on your take-home — every extra ₩1 earned just above a bracket line is taxed at a higher rate.

For most salaried employees in Korea, annual raise rates commonly fall somewhere in the 2–8% range, though they vary widely by industry, job function, and company size. The core use of this calculator is to try several values and compare how take-home changes at different raise rates for your salary level. Use the target raise rate alongside the expected take-home to build a concrete basis for your negotiation strategy.

Whether a performance bonus counts toward the raise rate calculation depends on company pay policy. If the annual salary contract explicitly bundles performance pay into the base figure, it is included; separately paid bonuses are typically excluded from the base salary raise calculation. From a tax perspective, performance bonuses are taxed as earned income alongside base salary, so the same progressive tax rates apply. During negotiations, it is important to distinguish clearly between base salary and bonus components to avoid ambiguity.