Day One KoreaLiving in Korea, explained

Korea Severance Pay Calculator

Enter your dates and recent pay to see the severance your employer owes when you leave.

1 year rule · Labor law formula

What it calculates: The lump sum (퇴직금) your employer must pay when you leave: 30 days of average wage for each year worked.

Who it's for: Employees of any nationality who worked at least one year for the same employer, at 15 or more scheduled hours a week.

Try an example

Base pay plus allowances you get every month (meal, position, housing allowance paid in cash).

Estimated severance 퇴직금

before tax
    Severance pay₩0

    Saves your inputs and result on one page, handy for HR, a landlord or an office visit.

    How it works

    Every worker in Korea who has worked for the same employer for at least one year, at 15 or more scheduled hours a week, is owed severance pay when they leave (Employee Retirement Benefit Security Act). Nationality and visa type don't matter: E-2 teachers, E-7 and E-9 workers, and part-timers on any visa are all covered.

    The formula

    Severance = average daily wage × 30 × (days employed ÷ 365)

    The average daily wage (평균임금) is everything you were paid in the 3 months before leaving, divided by the number of days in those 3 months. Bonuses and unused leave pay from the last year are added at 3/12 of their yearly total.

    Example: You earned ₩2,700,000 a month and worked exactly 2 years.

    3 months of pay = ₩8,100,000 over about 90 days = about ₩90,000 a day.

    Severance ≈ ₩90,000 × 30 × 2 = about ₩5,400,000.

    Rules worth knowing

    • Your employer must pay within 14 days of your last day, unless you both agree in writing to a later date.
    • The year counts from your first day. Leaving one day short of a full year means no severance at all.
    • Severance is paid on top of salary. A contract that says severance is "included" in monthly pay is generally not valid.
    • Some employers pay into a retirement pension plan (DB or DC) instead. You still get at least the legal amount.

    Frequently asked questions

    Do foreigners get severance pay in Korea?

    Yes. The law covers every worker in Korea regardless of nationality. E-9 workers often receive it through departure guarantee insurance (출국만기보험), with any shortfall paid by the employer.

    What if my employer does not pay?

    Report it to the Ministry of Employment and Labor (call 1350, interpretation available) or file online. Unpaid severance after 14 days is a criminal offence for the employer, and it also earns delay interest.

    Is severance taxed?

    Yes, as retirement income, which is taxed far more lightly than salary. For a few years of service at an average wage the tax is usually small or zero.

    I worked 11 months. Do I get anything?

    No severance is owed under one year of service. You still get your final salary and pay for any unused annual leave.

    Sources: Employee Retirement Benefit Security Act art. 8 · Labor Standards Act art. 2 (average wage), art. 36
    Last checked: 2026-10-19. Figures are updated every January.