Korea Severance Pay Calculator
Severance in Korea is daily average wage × 30 days × (days employed ÷ 365) under the Employee Retirement Benefit Security Act. This calculator shows the amount before tax.
How severance is calculated
- Wages for 3 months = pay for the last 3 months + annual bonus × 3/12 + unused leave pay × 3/12
- Daily average wage = that total ÷ calendar days in the 3 months (89–92)
- Severance = daily average wage × 30 × days employed ÷ 365
Example: on ₩3,000,000 a month for 3 years (1,095 days) ending December 31, the daily average wage is ₩9,000,000 ÷ 92 ≈ ₩97,826 and severance is about ₩8,804,347.
Who is eligible
- One year or more of continuous work for the same employer
- An average of 15 or more hours a week over four weeks
- Full-time, contract and part-time workers alike, including at workplaces with fewer than 5 employees
FAQ
When must my employer pay severance?
Within 14 days of your retirement date (Article 9 of the Act). The deadline can be extended by mutual agreement, but late payment carries 20% annual interest.
Is tax deducted from severance?
This calculator shows the pre-tax amount. Retirement income tax and local income tax are withheld, and the rate falls the longer you worked. Receiving it into an IRP account defers the tax until you draw a pension.
Do I get severance if I worked slightly less than a year?
No. Statutory severance requires at least one year of continuous employment. Check that your start date to last working day spans 365 days or more; the retirement date is the day after your last working day.
Do foreign workers get severance in Korea?
Yes. Anyone who worked at least one year and averaged 15+ hours a week is entitled, regardless of nationality. E-9 and H-2 workers usually receive it through departure guarantee insurance.