Explaining pay to foreign staff: contract salary and take-home pay

Contract salary and the amount deposited into an employee's account are different measures. Explain basic pay, allowances, hours and deductions by connecting the contract with the relevant payslip. Saying “we already explained the annual salary” does not explain a monthly difference.

Agree on the names of the amounts

Check which period and components the annual salary covers. Monthly gross pay includes the components payable for that pay period. Take-home pay reflects the deductions shown for that payment. Do not compare an annual figure divided into months directly with a bank deposit without checking the components.

An employer may mean basic pay by “monthly salary” while an employee expects the final amount including allowances. Name the amount, included items and calculation period explicitly.

Connect the contract and payslip

Item	Contract information	Payslip information
Period	Period covered by the agreed pay	Pay period and payment date
Basic pay	Agreed basic amount	Basic pay for this period
Allowances	Fixed or conditional items and criteria	Applied amounts and calculation
Hours	Agreed working hours and terms	Hours affecting the calculation
Deductions	Items to explain to the employee	Itemised deductions and total
Deposit	Payment method	Gross pay, deductions and amount deposited

The Ministry of Employment and Labor explains that payslips identify pay components, relevant calculations and deductions, and may be issued on paper or electronically. A contract describes agreed terms; a payslip explains a particular payment.

Investigate a changed month in order

First check whether joining or leaving created a partial pay period. Then compare allowance conditions, time-dependent amounts, adjustments and changed deductions. Do not attribute every difference to tax without checking.

Explain in payslip order: “This payment covers ○○; basic pay is ○○; the applied allowance is ○○; deductions are ○○.” The responsible person should be able to check attendance or time records used in the calculation.

Fictional example: one annual figure, two expectations

A fictional company includes a conditional allowance in “annual total remuneration”, while the worker expects the same monthly deposit. Separate fixed and conditional components and determine whether the allowance arose that month. Clarify future explanations rather than making an unsupported promise about take-home pay.

Check the documents and actual calculation. Do not change old contracts or work records simply to make the explanation easier.

Keep separate wage checks separate

Matching the contract and payslip, checking the applicable minimum wage, and reviewing occupation-specific residence wage requirements are different tasks. The Ministry of Justice publishes a separate 2026 E-7 wage notice. Identify its year, status category and relevant occupation.

An “above minimum wage” checkbox cannot settle every requirement. Do not copy another employee's personal tax or insurance rate.

Make explanations accessible

Agree on the explanation language, contact, delivery method and error-reporting route. Preserve the distinction between basic and take-home pay in translation. Record the question, evidence checked, correction and item to revisit on the next payment.

Turn the preparation into your next step

GEA employer recruitment consultation

GEA handles employment counselling and employment connections. Visa and residence administration is handled by its partner, Now Together Administrative Agent Office.

Official sources: 근로기준법 제17조 · 고용노동부 임금명세서 안내 · 2026년 E-7 임금요건 공고

Prepared by GEA · Sources checked: 24 October 2026