How Korean severance pay is calculated
Under the Employee Retirement Benefit Security Act, an employer must pay at least 30 days of average wages for every year worked to anyone who has worked for one year or more.
Severance pay = daily average wage × 30 × (days employed ÷ 365)
- Daily average wage = wages paid in the 3 months before leaving ÷ the number of calendar days in those 3 months (89 to 92).
- Add 3/12 of your yearly bonus and 3/12 of the unused-leave pay you received in the last year to the 3-month wages.
- The retirement date is the day after your last day worked, so days employed run from your start date up to and including your last day.
- If your daily ordinary wage is higher than the daily average wage, the ordinary wage is used instead.
Worked example
Start date October 2, 2014, last day worked September 15, 2017 (1,080 days). Monthly pay ₩2,360,000, yearly bonus ₩4,000,000, unused-leave pay ₩300,000.
(₩7,080,000 + ₩1,000,000 + ₩75,000) ÷ 92 days = ₩88,641 a day → ₩88,641 × 30 × 1,080 ÷ 365 ≈ ₩7,868,000
Who is eligible
- You worked for the same employer for at least one year (365 days).
- You averaged 15 hours or more a week over each 4-week period.
- It applies to every workplace, including those with fewer than 5 employees, and to foreign workers too.
- It must be paid within 14 days of leaving unless both sides agree to extend the date.
Standards and sources
- Employee Retirement Benefit Security Act, Articles 4, 8 and 9 · National Law Information Center (in Korean)
- Labor Standards Act, Article 2 (average wage) · National Law Information Center (in Korean)
- Severance pay calculator and worked example · Ministry of Employment and Labor (in Korean)
Last reviewed October 14, 2026
Frequently asked questions
Is severance pay taxed?
Yes. Retirement income tax and local income tax are withheld, usually a small share for short service. This calculator shows the amount before tax; the National Tax Service (Hometax) has an official retirement income tax calculator.
Do part-time and foreign workers get severance pay?
Yes, if you worked one year or more and averaged 15 hours or more a week. Nationality and workplace size do not matter.
Which date do I enter as my last day?
Enter the last day you actually worked. The legal retirement date is the next day, and the calculator handles that for you.
What counts as monthly pay?
Base pay plus fixed allowances paid regularly, such as meal, transport or position allowances, before tax and insurance deductions. Expense reimbursements do not count.
Is my data saved?
No. The calculation runs only in your browser, and nothing is sent to a server or stored.