Complete Salary Negotiation Guide: Smart Negotiation Based on Net Pay
1. Why Net Pay Matters
A "50M KRW salary" sounds like 4.16M monthly, but you actually receive only about 3.5M after insurance and taxes take nearly 20%.
โ ๏ธ Real Example
| Item | 50M Salary | 55M Salary |
|---|---|---|
| Monthly (Gross) | 4,166,667์ | 4,583,333์ |
| 4 Insurances | -374,000์ | -412,000์ |
| Income Tax | -195,000์ | -245,000์ |
| Net Pay | 3,597,667์ | 3,926,333์ |
| Difference | +328,666์/์ | |
A 5M salary increase actually means about 330K more per month.
2. How to Calculate Net Pay
Knowing your exact net pay gives you an advantage in negotiations. Understand deductions and calculate it yourself.
Major Deductions
- National Pension: 4.5% of monthly income
- Health Insurance: 3.545% of monthly income
- Long-term Care: 12.95% of health insurance
- Employment Insurance: 0.9% of monthly income
- Income Tax: Progressive tax on taxable income
3. 5-Step Negotiation Strategy
Step 1: Market Research
Research salary levels in your industry and experience range on job platforms. Collect at least 10 data points.
Step 2: Quantify Your Value
"I'm capable" is less convincing than "My project generated 500M KRW in annual revenue."
Step 3: Set Target Range
- Minimum: Won't accept below this
- Target: Realistic desired amount
- Anchor: Initial ask (10-15% above target)
Step 4: Non-monetary Benefits
If salary increase is difficult, negotiate other benefits: remote work, flexible hours, education support, stock options, extra vacation.
Step 5: Document Everything
Verbal agreements are risky. Document all negotiation results via email or writing.
4. Mistakes to Avoid
Speaking First
Let the company make the first offer
Getting Emotional
Negotiation is business. Stay calm
Lying
Lying about offers or current salary loses trust
Giving Up
Most salaries are negotiable. Not trying is a loss
5. Negotiation Script Examples
๐ฌ Starting Negotiation
"Based on my research, average salary for similar roles is 55-60M. Considering my [specific achievements], I believe 58M is appropriate."
๐ฌ Responding to Counter-offer
"Thank you for the offer. However, considering the value I can bring, could we discuss further? Especially given [specific expected contributions]..."
Key Takeaway
Negotiation is your right. Prepared negotiators earn 5-10% more on average. Calculate your net pay precisely and arm yourself with data.