Korean Severance Pay Calculator
Enter your start date, leaving date and monthly pay to get your statutory severance pay in Korea. The formula is average daily wage × 30 × (days employed ÷ 365); annual bonuses and leave pay count at 3/12. A retirement income tax estimate is included.
| Estimated severance | - |
| Days employed | - |
| Average daily wage | - |
| Retirement tax (est.) | - |
Basis: Employee Retirement Benefit Security Act Art. 4 and 8 (1+ year, 15+ hours/week, 30 days’ average wage per year), Labor Standards Act Art. 2 (average wage = 3 months’ wages ÷ days in that period), Ministry of Employment and Labor severance calculator (annual bonus and leave pay × 3/12), Income Tax Act Art. 48 and 55, Local Tax Act Art. 103-13 (10%). Sources: law.go.kr and moel.go.kr, checked 6 Oct 2026. Estimate only.
How to use the severance calculator
- Pick your start date and the day after your last working day.
- Enter your average gross monthly pay over the last 3 months (base pay plus fixed allowances).
- Add the year’s total bonuses and unused-leave pay if any — only 3/12 is counted.
Before you collect severance
- It must be paid within 14 days of leaving unless you agree on another date.
- It usually goes into an IRP account if you’re under 55; withdrawing it right away triggers retirement income tax.
- Unpaid leave in the last 3 months is excluded from the average-wage period, so your employer’s figure may differ.
FAQ
How is severance pay calculated in Korea?
Severance = average daily wage × 30 × (days employed ÷ 365). The average daily wage is total wages paid in the 3 months before leaving (plus 3/12 of annual bonuses and leave pay) divided by the number of days in those 3 months.
Who is entitled to severance pay?
Anyone who worked for the same employer for at least one year and averaged 15 or more contracted hours a week — including contract and part-time workers and foreign employees.
What date should I enter as the leaving date?
The day after your last working day. This matches the Ministry of Employment and Labor’s calculator.
Is severance pay taxed?
Yes, as retirement income, with deductions for years of service. The estimate here follows Income Tax Act Articles 48 and 55; receiving it into an IRP pension account can reduce tax.
Is this calculation official?
No — it’s an estimate using the statutory formula. Your employer’s payroll records decide the final amount.