Statutory severance pay in Korea

Workers with qualifying service and weekly hours may be owed severance pay. Estimate it from daily average wage, 30 days and length of service.

Checked 2026-09-23 · Estimates and reference information, not legal or tax advice.

Who qualifies

The general statutory threshold is at least one year of continuous service and scheduled weekly hours averaging at least 15 over four weeks. Workplace size alone does not remove this severance rule.

Formula

Daily average wage = wage total during the three months before the retirement date ÷ calendar days in that period. Estimated severance = daily average wage × 30 × days of continuous service ÷ 365. Ordinary wage may replace average wage if the statutory comparison requires it.

Example

For a daily wage of KRW 100,000 and 730 days of service, the simple formula gives KRW 100,000 × 30 × 730 ÷ 365 = KRW 6 million before tax, assuming all wage components and dates are correct.

Excluded periods

Certain periods, such as legally specified leave or shutdown periods, and their wages may be excluded from average-wage calculation. A simple three-month calculator cannot model every exception.

Payment timing

Retirement-related money is generally settled within 14 days unless the parties validly agree otherwise. Confirm payment method and whether a retirement pension account is involved.

Try the calculator

Severance pay calculator →

Sources

These Korean-language sources were checked on 2026-09-23. Laws and rates may have changed; consult the originals before an important decision.