Korean Severance Pay Calculator
Work out the statutory Korean severance payment from your hire and leaving dates and the wages of your last three months.
About this tool
Korean severance pay is the average daily wage multiplied by 30 days, multiplied by days of service divided by 365 — roughly one month’s pay for each year worked. Enter your start and leaving dates and the wages for the three months before you left, and this tool walks through that calculation and shows its working.
Several details catch people out. The leaving date is the day after your last working day, and both the length of service and the three-month calculation window are measured from it. Those three months run to anywhere between 89 and 92 days depending on which months they are, so the total must not simply be divided by 90 — this tool divides by the actual number of days in each segment. Annual bonuses and unused-leave allowances count towards the average wage at three-twelfths, the share attributable to three months.
If the average wage works out below the ordinary daily wage, the ordinary wage is used instead, under Article 2 of the Labor Standards Act; this genuinely happens when a month with significant absence falls inside the window. Employees with less than one year of continuous service are not entitled to statutory severance pay. The figure shown is before retirement income tax, and some employers pay more than the statutory minimum under their own rules, so the amount actually paid may differ.