Korean Severance Pay Calculator
Use your final-three-month wages to check a before-tax Korean severance estimate, average wage, and basic eligibility.
- Features others lock behind paywalls
- Fewer clicks, keyboard friendly
Estimate statutory Korean severance from the actual final three months of pay — calculated in this browser.
Saved in this browserEmployment and eligibility
Wages for the final three months
Enter gross wage totals from payslips. Include only items that count as wages.
Items to add when eligible
Estimated statutory severance
The entered dates and weekly hours meet the usual statutory eligibility thresholds. Confirm exceptional periods before relying on the estimate.
Retirement date: Feb 1, 2024
Average-wage period: Nov 1, 2023 to Jan 31, 2024
Three-month wages: 9,000,000 KRW
Bonus included (3/12): 0 KRW
Leave pay included (3/12): 0 KRW
Total for average wage: 9,000,000 KRW
Calculation
97,826.09 KRW × 30 × (396 ÷ 365) = 3,184,038 KRW
This is a pre-tax reference estimate. Excluded periods, wage eligibility, interim settlements, and DB/DC pension arrangements can change the actual payment.
How to use
- Enter the first day of employment and the final day you worked; the calculator sets the retirement date to the next day.
- Enter the applicable four-week average of prescribed weekly hours to check the usual 15-hour threshold.
- Copy the gross wage totals from pay records for the final three-month average-wage period.
- Add only eligible annual regular bonuses, annual-leave pay, and a known daily ordinary wage when applicable.
- Review the before-tax estimate, calendar days, daily wage used, and substituted formula, then copy the result if needed.
Korean statutory severance formula and the three-month average wage
The statutory reference formula is daily average wage × 30 × total days of continuous service ÷ 365. Under Article 8 of the Employee Retirement Benefit Security Act, an employer must generally provide at least 30 days of average wages for each year of continuous service. Article 2 of the Labor Standards Act defines average wage as the total wages paid during the three calendar months before the reason for calculation arose, divided by the calendar days in that period. This calculator treats the day after the final working day as the retirement date, then automatically finds the preceding three calendar months. That period is normally 89 to 92 calendar days and includes weekends and holidays, not only days actually worked. Sources checked October 23, 2026: Ministry of Employment and Labor, “Severance Pay Calculation” (moel.go.kr/retirementpayCal.do), and the National Law Information Center.
What to enter as wages, bonus, and annual-leave pay
Enter gross, before-tax wage totals from the final three-month period, including wage items shown in your pay records. Regular bonuses and eligible annual-leave allowance can affect the average wage: the Ministry of Employment and Labor’s official example adds 3/12 of each eligible annual total to the three-month wages. Do not assume every payment with the word “bonus,” meal, expense, or leave is a wage. Its inclusion depends on its payment basis and the applicable rules. Keep the three pay entries separate here so you can compare the total with your pay stubs before using the estimate. Source checked October 23, 2026: Ministry of Employment and Labor, “Severance Pay Calculation” (moel.go.kr/retirementpayCal.do).
Eligibility, ordinary wage floor, and limits of this estimate
Under Article 4 of the Employee Retirement Benefit Security Act, the statutory retirement-benefit system generally does not apply when continuous service is under one year or prescribed weekly hours average under 15 over four weeks. The Ministry of Employment and Labor calculator also uses a verified daily ordinary wage when it exceeds the calculated average wage. This calculator does not determine excluded average-wage periods, changing-hours service periods, interrupted service, prior interim settlements, wage character, retirement-income tax, or DB/DC pension balances. Sources checked October 23, 2026: National Law Information Center, Article 4; Ministry of Employment and Labor, “Severance Pay Calculation”; and Korea Workers’ Compensation & Welfare Service, Hope Tree vol. 161.
Frequently asked questions
How is statutory severance pay calculated in South Korea?
The statutory reference calculation is daily average wage × 30 × total continuous-service days ÷ 365. A worker who has at least 365 days of continuous service is generally entitled to at least 30 days of average wage for each service year, subject to the weekly-hours condition and the applicable facts.
Are the final three months counted as workdays only?
No. Average wage uses the total calendar days in the three months before the retirement date, including weekends and holidays. Depending on the calendar, the period is usually 89 to 92 days; this calculator determines that day count from the final working date.
Do bonuses and unused annual-leave pay affect Korean severance pay?
Eligible regular bonuses and eligible annual-leave allowance can be reflected in average wage, commonly by adding 3/12 of the relevant 12-month amount to the final three-month wages. Whether a specific payment is eligible depends on its character and timing, so confirm it against payroll records and the applicable rules.
Is an employee working less than 15 hours a week eligible for severance pay?
A worker whose prescribed weekly hours average less than 15 over four weeks is generally excluded from the statutory retirement-benefit system. The calculator flags the usual threshold but cannot decide service periods with changing hours or employment status.
Is statutory Korean severance owed for less than one year of work?
The statutory retirement-benefit system generally does not apply when continuous service is under one year. An employment contract, collective agreement, or company policy can provide more favorable terms, so check those separately.
Is this severance-pay result the amount that will be deposited?
No. This is a before-tax reference estimate. Retirement-income tax, excluded periods, a higher ordinary wage, interim settlements, pension-plan arrangements, and which payments qualify as wages can change the employer’s final payment.
Does this Korean severance calculator send my pay information to a server?
No. The calculation runs in the browser. The current entries are stored only in that browser to restore your work and are not sent to a server.
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Updated 2026-10-23