Disability Employment Levy vs Direct Hire | Korea 2026

Monthly levy and direct-hiring comparison
Month	Required/credits	Levy tier	Baseline levy	Post-hire levy	Monthly saving	Cumulative saving	Cumulative net hiring cost
1	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 1,813,000	KRW 7,560,000
2	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 3,626,000	KRW 11,120,000
3	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 5,439,000	KRW 14,680,000
4	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 7,252,000	KRW 18,240,000
5	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 9,065,000	KRW 21,800,000
6	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 10,878,000	KRW 25,360,000
7	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 12,691,000	KRW 28,920,000
8	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 14,504,000	KRW 32,480,000
9	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 16,317,000	KRW 36,040,000
10	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 18,130,000	KRW 39,600,000
11	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 19,943,000	KRW 43,160,000
12	13/1	Below one-quarter(KRW 1,813,000)	KRW 21,756,000	KRW 19,943,000	KRW 1,813,000	KRW 21,756,000	KRW 46,720,000

What does the Korean disability-employment comparison include?

South Korea’s disability employment levy is assessed when an in-scope employer falls short of the monthly mandatory disability-employment count.
Looking at the annual levy alone does not show how much levy a direct hire may avoid or how wages, employer on-costs, benefits, recruitment, training, accommodation, and confirmed support change the budget.
This calculator first estimates the 2026 levy from twelve monthly workforce rows, then applies a hypothetical direct-hiring plan and compares the remaining levy plus net hiring cost with the baseline levy.

The levy-only option represents the estimated levy if the entered workforce remains unchanged.
The direct-hiring option adds wage and related cash costs to the post-hire levy and deducts only support whose receipt and amount are confirmed.
A lower calculated cash total is a planning signal, not a recommendation to decide whether a person should be hired on cost alone.

Useful planning moments

Cross-checking monthly workforce data and an estimated levy before the January filing deadline
Building next year’s disability hiring plan and employment-cost budget together
Testing how double credit for qualifying severe disability changes the levy
Separating a conservative no-support scenario from a confirmed-support scenario
Reviewing the 50-employee employment-duty boundary and the under-100 levy exemption

Paying the levy is not a substitute for inclusive hiring

The employment duty and the levy serve distinct statutory purposes and should not be interpreted as two interchangeable ways to purchase the same outcome.
A direct-hiring plan should also address job analysis, accessible recruitment, the candidate’s preferences, reasonable accommodation, a safe workplace, and sustainable retention.
This page does not file a return, determine benefit eligibility, provide Korean labor or legal advice, or assess a particular candidate’s suitability.

Core 2026 rules used by the calculator

The Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities generally imposes the employment duty on an employer with an average of at least 50 regular employees.
The 2026 mandatory rate is 3.1% for a private employer and 3.8% for the public institutions and similar entities specified by law.
The monthly mandatory count is the monthly regular-employee count multiplied by the relevant rate, with the fractional part discarded.

An employer averaging fewer than 100 regular employees is exempt from the levy.
A workplace averaging from 50 to fewer than 100 employees can therefore remain subject to the employment duty while the calculator reports a zero levy.
The test uses the annual average, so one month above 100 does not necessarily remove the exemption, while an annual average of at least 100 can bring months below 100 into the annual levy calculation.

Korean disability employment and levy rules used for 2026
Rule item	2026 value	Calculator treatment
Private mandatory rate	3.1%	Multiply each monthly regular count and discard fractions
Specified public-sector rate	3.8%	Applied when the public-institution option is selected
Employment-duty threshold	Average 50 or more	Below 50 means no duty and no levy in this model
Levy exemption	Average below 100	The levy is zero despite a disability-employment shortfall
Severe-disability credit	Normally two credits per person	Only one credit if scheduled under 60 hours per month

How monthly regular employees are represented

Under the Enforcement Decree, the annual average uses employees with at least 16 wage-basis days in each month and divides the total by operating months.
A month with fewer than 16 operating days due to business commencement or cessation may be excluded, which is why each row has an operating-month checkbox.
Treatment of short-hour employees, particular work arrangements, and disability documentation can depend on the facts, so reconcile the inputs with payroll records and current KEAD filing guidance.

2026 levy base amounts and monthly formula

The same base amount does not apply to every missing employee.
The monthly amount per missing person changes with the employer’s actual disability-employment level relative to that month’s mandatory count.
If no disabled person is employed in a month, the law applies the 2026 monthly minimum-wage equivalent of KRW 2,156,880.

2026 Korean disability employment levy base amounts
Monthly employment level	Monthly base per missing person	Interpretation
At least three-quarters of the mandatory count	KRW 1,295,000	The standard 2026 base amount
One-half to below three-quarters	KRW 1,372,700	A higher amount as fulfillment falls
One-quarter to below one-half	KRW 1,554,000	Classified independently for each month
Below one-quarter	KRW 1,813,000	Used when at least one disabled person is actually employed
No disabled employees	KRW 2,156,880	The 2026 monthly minimum-wage equivalent

Monthly mandatory count equals regular employees multiplied by the applicable rate, with fractions discarded
Monthly disability credits equal non-severe employees plus twice the severe employees scheduled for 60 hours or more plus severe employees scheduled for under 60 hours
Monthly shortfall is the greater of zero and the mandatory count minus disability credits
Monthly levy is the shortfall multiplied by the base amount for that month’s employment tier
Annual levy is the sum of operating-month levies when the annual average is at least 100

The calculator finds the three-quarter, one-half, and one-quarter boundaries by multiplying the monthly mandatory count and discarding fractions.
If the mandatory count is 13, the boundaries are 9, 6, and 3, matching KEAD’s official 2026 worked example.
Once disability credits meet the mandatory count, the shortfall and levy are zero and no tier amount is applied.

Build reliable monthly inputs

Collect source records

Monthly payroll and wage-basis-day records
The employee roster used for regular-headcount classification
Documents supporting disability status and severity
Monthly scheduled hours for severely disabled employees
Evidence for any non-operating month

Preserve monthly changes

Regular-headcount changes caused by starts and departures
The first and last qualifying month for each disabled employee
Credit changes caused by scheduled-hour changes
The feasible start month and active months of the hiring plan
Confirmed support amounts and approved payment periods

When every month is identical, enter January and use the copy-across button.
Then edit only months affected by hiring, departures, hour changes, or business interruptions, and the annual average and tiered levy will recalculate.
Do not turn off a real operating month merely to reduce the estimate; the checkbox represents the legal operating-month basis, not an elective exclusion.

Enter severe-disability credits correctly

A severely disabled employee normally counts as two for mandatory-employment and levy calculations.
The Enforcement Decree excludes a severely disabled employee scheduled for under 60 hours per month from double counting, so that person contributes one credit.
The monthly table keeps those two populations separate, and the direct-hiring scenario should use double credit only when the planned contract meets the 60-hour condition.

How the direct-hiring net cost works

The calculator separates recurring cost from one-time implementation cost and applies each component to the entered number of hires.
Recurring cost consists of monthly wage plus the entered employer on-cost percentage and monthly benefits or operating cost.
One-time cost consists of recruitment and training plus accommodation and assistive-technology cost.

Monthly recurring cost

Hires × {monthly wage × (1 + employer on-cost rate) + monthly related cost}

Gross hiring cost

Monthly recurring cost × active operating months + one-time recruitment, training, and accommodation

Net hiring cost

Gross hiring cost − support whose receipt and amount are confirmed

The default 12% employer on-cost rate is an illustrative input, not a statutory disability-employment rate.
Replace it with the company’s own budget estimate for employer social-insurance contributions, retirement benefits, paid leave, and other loaded payroll components.
The model does not separately calculate corporate tax, credits, recoverable VAT, or accounting timing, so keep all alternatives on the same cash or pretax basis used by the budget team.

Deduct support only after confirmation

Employment incentives, workplace-facility assistance, and assistive-technology support can depend on the employer, employee, employment period, application date, and overlap with other programs.
Deducting an estimate before eligibility and amount are confirmed can materially understate direct-hiring cost.
Entering an amount is not enough: the calculator deducts it only when the status is set to Confirmed and never lets support reduce gross hiring cost below zero.

Validate the result with KEAD examples

KEAD’s worked example uses a private employer with 450 regular employees and one non-severely disabled employee in every month.
The monthly mandatory count is 13, the shortfall is 12, and the employment level is below one-quarter, so the monthly base amount is KRW 1,813,000.
Multiplying the monthly levy of KRW 21,756,000 by twelve produces an annual levy of KRW 261,072,000.

KEAD official worked examples reproduced by the calculator
Scenario	Monthly credits	Monthly shortfall	Annual levy
450 regular and one non-severe disabled employee	1	12	KRW 261,072,000
450 regular, three non-severe and two qualifying severe employees	7	6	KRW 98,834,400

In the second example, three non-severe employees and two qualifying severe employees produce seven disability credits.
The shortfall is six and the employment level is from one-half to below three-quarters, resulting in an annual levy of KRW 98,834,400.
Use the calculator’s KEAD severe-disability example button to reproduce this vector immediately.

Interpret savings and break-even carefully

Levy avoided

This is the baseline levy minus the levy after the hypothetical hires.
The model also increases regular headcount for each hire, so it captures a possible increase in the mandatory count at a rounding boundary.

Sustained break-even month

This is the first month when cumulative levy savings reach cumulative net hiring cost and do not fall below it again through year-end.
If that condition is not reached in 2026, the result says so rather than projecting an unsupported future-year answer.

A lower levy-only total means only that the entered one-year cash cost is lower.
It excludes skill development, productivity, customer accessibility, workforce diversity, ESG outcomes, long-term recruitment capacity, and retention value, so it is not a complete management conclusion.
A lower direct-hiring total likewise does not guarantee that support will be paid, the employee will remain for the entered period, or accommodation cost will equal the initial estimate.

Run three sensitivity checks

Compare a conservative zero-support case with the amount in a final support decision
Move the hiring start between the earliest feasible month and a realistic delay case
Vary severe double-credit status and the high and low ranges for wage and accommodation cost

Pre-filing and hiring-plan checklist

Levy filing evidence

Monthly regular-employee counts and the 16-day basis
Disabled employee roster and qualifying documents
Severity and monthly scheduled-hour records
Monthly mandatory, credited, and missing counts
Prior-year filing, payments, and corrections

Direct-hiring execution

Job analysis, essential duties, and planned hours
Accessible vacancy information and selection process
Reasonable accommodation agreed with the individual
Manager and colleague training plus onboarding
KEAD consultation, support decisions, and follow-up timing

The levy return and payment are generally due by January 31 of the following year, so reconcile monthly evidence before year-end where possible.
Instalments and a full-payment deduction have separate conditions involving amount, employer category, and payment method and are not automatically included here.
If a filing result differs from the estimate, prioritize the current official filing rules, monthly classification, reductions, and deductions confirmed by KEAD.

Frequently asked questions

Is the levy always zero when one month has 99 employees?

The test uses the annual average across operating months, not a single month. An average below 100 is levy-exempt, while an average of at least 50 can still leave the employment duty in place.

Does every severely disabled employee count as two?

No. A severely disabled employee scheduled for under 60 hours per month is excluded from double counting and should be entered in the one-credit severe category.

Why is the base amount higher when nobody with a disability is employed?

The Act applies the monthly minimum-wage equivalent to the shortfall for a month with no disabled employees. That amount is KRW 2,156,880 for 2026.

Can expected employment support be entered now?

You may record a planning amount, but the calculator does not deduct it while the status is Not checked or Under review. Switch to Confirmed only after entitlement and amount are established.

Can I use this result for a 2027 plan?

No. This version applies only the 2026 rates and base amounts. The private mandatory rate changes from 2027, and a later-year base amount must be verified separately.

Is the result the amount I should file?

It is a planning and cross-check estimate, not a filed assessment. Confirm employer scope, employee inclusion, reductions, payment deductions, and current filing guidance with KEAD.

Official sources and next steps

The rule model checks Articles 28, 28-2, 28-3, and 33 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities and Articles 24, 25, 26-2, and 36 of its Enforcement Decree.
The 2026 base amounts come from Ministry of Employment and Labor Notice 2025-133, and the tier boundaries and validation vectors follow KEAD’s levy guidance and worked examples.
Sources were checked on August 16, 2026, and a later amendment, corrective notice, or authoritative KEAD interpretation should take priority.

Save a conservative case and a confirmed case

Start with zero support, then update the hiring month, accommodation cost, and confirmed support after job analysis and KEAD consultation so budget reviewers can see every assumption behind the result.

Month	Operating	Regular employees	Non-severe	Severe, 60+ hours	Severe, under 60 hours	Credits
1						1
2						1
3						1
4						1
5						1
6						1
7						1
8						1
9						1
10						1
11						1
12						1

Disability Employment Levy vs Direct-Hire Net Cost Calculator

1. Employer type and monthly workforce

2. Direct-hiring scenario

3. Hiring costs and confirmed support

The levy-only option has the lower calculated cost

Levy summary

Direct-hiring cost summary

Review before making a decision

2026 levy base amounts

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