Korea Severance Pay Calculator
Enter your start date, last working day and your pay for the last 3 months to estimate your statutory severance pay under the Labor Standards Act.
Results are estimates for reference only. Actual amounts may differ depending on your individual situation and the decisions of the relevant authorities.
How severance pay is calculated
Under the Employee Retirement Benefit Security Act, severance pay is calculated as follows.
Severance pay = daily average wage x 30 days x (days worked / 365)
The daily average wage is your total pay in the 3 months before your last working day (base pay plus one quarter of your annual bonus and annual leave payout) divided by the number of days in those 3 months. Employees with less than one year of continuous service are not entitled to statutory severance pay.
For typical results by monthly wage and years of service, see the severance pay table.
Severance pay examples
Example 1: stable salary, no bonus. With a monthly wage of KRW 3,000,000 and 3 years of service, the daily average wage is about KRW 98,000 and severance pay is about KRW 8,876,712. For a stable salary, severance pay is roughly one month's wage per year of service.
Example 2: with an annual bonus. Add an annual bonus of KRW 6,000,000 to the same job. One quarter of it, KRW 1,500,000, is added to the 3-month wage total, which raises severance pay to about KRW 10,271,739.
| Monthly wage | 1 year | 3 years | 5 years |
|---|---|---|---|
| KRW 2,500,000 | KRW 2,465,753 | KRW 7,397,260 | KRW 12,328,767 |
| KRW 3,000,000 | KRW 2,958,904 | KRW 8,876,712 | KRW 14,794,521 |
| KRW 4,000,000 | KRW 3,945,205 | KRW 11,835,616 | KRW 19,726,027 |
See the full severance pay table for more monthly wage levels.
Severance pay for foreign workers
- E-9 (non-professional employment) and H-2 workers: Employers generally pay into a departure guarantee insurance (and a return cost insurance) rather than paying severance during employment. The insurance is paid out after you leave Korea, normally within 14 days of departure. The monthly premium is about 8.3% of your wages.
- Other work visas (E-7, E-2, F-series and others): The standard Korean severance rules apply, either as a lump sum or through a retirement pension plan (DB or DC).
- Retirement pension plans: If you are in a DC plan, your employer deposits at least 1/12 of your annual pay into your account each year. DB plans pay out based on your average wage at retirement.
If you have not been paid
Severance pay is due within 14 days of your last working day. If it is late, you can file a complaint with your local office of the Ministry of Employment and Labor, or call the 1350 consultation line, which provides interpretation in several languages. Delay interest of 20% per year applies to unpaid severance.
Frequently asked questions
Who is entitled to severance pay in Korea?
Employees who have worked continuously for at least one year and work an average of 15 hours or more per week are entitled to severance pay equal to at least 30 days of average wages for each year worked. This generally applies to foreign employees as well.
How is severance pay calculated?
Severance pay = daily average wage x 30 days x (days worked / 365). The daily average wage is your total pay for the 3 months before leaving, divided by the number of days in those 3 months. One quarter of your annual bonus and annual leave payout is added to the 3-month total.
I work on an E-9 visa. How do I get my severance pay?
Employers of E-9 (non-professional) workers generally pay into a departure guarantee insurance instead of paying severance directly. The insurance pays out after you leave Korea, usually within 14 days of departure. Ask your employer which scheme applies to you.
When must severance pay be paid?
Employers must pay within 14 days of your last working day. Late payment is subject to delay interest of 20% per year, and unpaid wages can be reported to the local Ministry of Employment and Labor office.
Do I get severance pay if I worked less than one year?
No. Statutory severance pay is only for continuous employment of one year or more.