Korea Severance Pay Calculator
Last updated: 2026-06-25
Severance pay is the average daily wage multiplied by 30 days, times the ratio of total days of service divided by 365.
The formula is severance = average daily wage × 30 × (total days of service ÷ 365), where average daily wage = total wages of the last 3 months ÷ the number of days in those 3 months.
Enter your work details
Estimated severance pay (pre-tax estimate)
0 KRW
This is a pre-tax estimate before retirement income tax and local income tax. Confirm the exact figure with your company or the Ministry of Employment and Labor.
How to use
- Enter dates — Select your join and leave dates and the days of service are calculated automatically.
- Enter 3 months of wages — Enter the total wages from your last 3 months and, if applicable, your annual bonus and annual leave allowance.
- View the result — Press Calculate to see the average daily wage and the estimated pre-tax severance pay.
How severance pay is calculated and who gets it
Under the Labor Standards Act and the Guarantee of Workers' Retirement Benefits Act, an employer must pay at least 30 days of average wage per year of continuous service. The average wage is the total wages paid in the 3 months before departure divided by the total number of days in that period.
| Item | Description |
|---|---|
| Average daily wage | Total wages of last 3 months ÷ days in those 3 months |
| 30 days | Average daily wage × 30 |
| Service ratio | Total days of service ÷ 365 |
| Severance pay | Average daily wage × 30 × (total days of service ÷ 365) |
| Bonus / leave allowance | 3 months' worth (3/12) of the annual amount added to average wage |
Eligible workers average at least 15 hours a week with one or more years of continuous service, and the employer must pay within 14 days of departure. For detailed methods and examples, see our guide Korean severance pay calculation and payment rules.
Frequently asked questions (FAQ)
How is severance pay calculated in Korea?
Severance pay = average daily wage x 30 days x (total days of service / 365). The average daily wage is the total wages received in the last 3 months divided by the number of days in that period.
Who is eligible for severance pay?
Under the Labor Standards Act, workers who average at least 15 hours a week and have at least one year of continuous service are entitled to severance pay on leaving. Regular, contract and part-time workers all qualify if they meet the requirements.
Are bonus and leave allowance included in the average wage?
Regularly paid bonuses and unused annual leave allowance are included in the average wage. Amounts paid on an annual basis are reflected at 3 months' worth (typically 3/12 of the annual amount) in the average wage calculation.
Is this result the exact net severance pay?
This result is a pre-tax estimate. The actual amount received is reduced by retirement income tax and local income tax, and the tax varies with years of service and the retirement income deduction. Confirm the exact figure with your company or a tax professional.
By when must severance pay be paid?
The employer must pay severance within 14 days of the worker's departure. The deadline may be extended by mutual agreement. Failure to pay can result in delay interest and legal liability.
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Last updated: 2026-06-25