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Severance Pay Calculator (Korea)
Estimate your Korean severance pay based on employment period and salary
Why Use This Tool?
- Estimate your Korean severance pay before leaving your job.
- Verify that your employer is calculating your severance correctly.
- Plan your finances during a career transition by knowing your payout amount.
Formula
Severance = (Average Daily Wage x 30) x (Total Days Worked / 365). Average Daily Wage = Last 3 Months Gross Salary / 90. For example, 3 years of service with 9,000,000 KRW last 3-month salary: Daily Wage = 100,000, Severance = 100,000 x 30 x (1095/365) = 9,000,000 KRW.
How to Use
- Enter your employment start date
- Enter your employment end date
- Enter your total gross salary for the last 3 months
- View your tenure and estimated severance pay
FAQ
How is Korean severance pay calculated?
Severance = (Average Daily Wage × 30) × (Total Days Worked ÷ 365). The average daily wage is calculated by dividing the total salary for the last 3 months by 90 days.
Who is eligible for severance pay in Korea?
Employees who have worked continuously for at least 1 year and averaged 15 or more hours per week are entitled to severance pay under Korean labor law. Those with less than 1 year of service are not eligible.
Is severance pay taxed in Korea?
Yes, severance pay is subject to retirement income tax in Korea. The tax rate depends on the amount and years of service, but it is generally lower than regular income tax rates.
When should severance pay be paid?
Under Korean labor law, employers must pay severance within 14 days of the employment termination date, unless both parties agree to an extension.
Does the severance calculation include bonuses?
The last 3-month salary used for calculation should include all regular wages such as base salary, fixed bonuses, and allowances. Irregular one-time bonuses may or may not be included depending on employment contract terms.