Korea Severance Pay Calculator
Estimate South Korea statutory severance pay from service dates, recent pre-tax wages, bonus, and unused leave pay.
Results are pre-tax planning estimates. Actual severance, retirement income tax, and wage inclusion can vary by contract, work rules, payment practice, leave, absence, and company settlement policy.
Severance Estimate
Estimated Pre-Tax Severance
12,168,313 KRW
Reference amount when the statutory eligibility assumptions are satisfied.
Average Daily Wage
115,934 KRW
Total included pre-tax wages divided by the number of days in the average-wage period.
Service Period
3 yr 182 days
1,277 days · 3.5 yr
Severance eligibility assumptions met
At least 1 year of service: The service-period assumption is satisfied.
At least 15 hours per week: The weekly-hour assumption is satisfied.
Applied Daily Wage
115,934 KRW
30 Days of Average Wage
3,478,022 KRW
Included Pre-Tax Wages for Average Wage
10,550,000 KRW
Average-Wage Period
2026-04-01 ~ 2026-07-01
Average Period Days
91 days
Bonus and Leave Pay Included
950,000 KRW
Statutory Korean severance is generally based on at least 30 days of average wage for each year of continuous service. This calculator is a reference estimate and does not finalize retirement income tax, company settlement rules, or special leave, absence, pay-cut, and bonus treatment.
Severance Calculation Basis and Eligibility
Reference date and last reviewed: July 10, 2026
Calculation Basis
Calculates average daily wage from wages and calendar days in the three months before separation plus three-month allocations of eligible annual bonuses and unused-leave pay, then multiplies 30 days of average wage by service days divided by 365.
Reference Limits
Actual benefits may change when ordinary wage exceeds average wage, wage items or excluded periods are disputed, bonuses or leave pay are treated differently, or a retirement pension applies. This tool does not determine every statutory adjustment.
When to Confirm Officially
If employment dates, the average-wage period, included wage items, or unpaid benefits are disputed, gather payslips and the employment contract and confirm with payroll, a labor professional, or the labor authority.
Usage Tips
Estimate Korean statutory severance from service period and average wage
Use monthly pay or actual three-month wage totals to estimate average wage, eligibility, service period, and pre-tax severance under South Korea severance-pay assumptions.
What is Korea Severance Pay Calculator?
The Korea Severance Pay Calculator estimates pre-tax statutory severance under South Korea assumptions from hire date, termination date, monthly pre-tax wage or recent three-month pre-tax wages, pre-tax bonus, and pre-tax unused annual leave pay. It supports a quick monthly-pay mode and a direct last-three-month wage mode, then shows service period, average wage, 30 days of average wage, and eligibility assumptions.
How to Use
- 1Enter the hire date and termination date. The termination date is used as the wage-calculation event date.
- 2Choose whether the worker averaged at least 15 hours per week for the eligibility assumption.
- 3Choose either the monthly-pay estimate mode or the actual last-three-month pre-tax wage input mode.
- 4In monthly mode, enter base pay and fixed allowances as one monthly pre-tax wage.
- 5Enter pre-tax annual bonus and pre-tax unused annual leave pay from the last year if applicable. The calculator includes a three-month share in the average-wage amount.
- 6Review pre-tax severance, average daily wage, 30 days of average wage, service period, and eligibility status.
- 7Copy the result into settlement review notes, labor consultation prep, or a personal budget sheet.
From average wage to Korea severance pay
Last reviewed: July 10, 2026Continuous service is applied by day
estimated severance = applied daily wage × 30 × service days ÷ 365
Applied daily wage is the larger of the calculated three-month average wage and the ordinary daily wage entered. The tool also checks the basic one-year and 15-average-weekly-hours assumptions.
Example: hired 2023-01-01 and terminating 2026-01-01
- • KRW 3,200,000 fixed monthly wage
- • KRW 2,400,000 annual bonus
- • KRW 800,000 annual unused-leave pay
- • 40 average weekly hours
- 1. three-month wage = 3.2m×3 + 2.4m×3/12 + 0.8m×3/12 = KRW 10.4m
- 2. 92-day period → average daily wage KRW 113,043.48
- 3. 30 days = KRW 3,391,304.35
- 4. 3,391,304.35×1,096÷365 = KRW 10,183,204
Estimated pre-tax severance is about KRW 10,183,204. Excluded periods, wage items, retirement-plan rules, and tax require separate review.
How to read the result
- Monthly mode multiplies fixed monthly wage by three; direct mode uses the actual pre-tax total for the recent three months.
- Annual bonus and unused-leave pay are included at 3/12 of the entered one-year total.
- The result is a pre-tax statutory reference amount, not the bank deposit or retirement-account market value.
Conditions that change the result
- Excluded periods, shutdowns, maternity leave, occupational injury, and wage reductions can change the average-wage period and amount.
- The tool displays zero when service is under one year or four-week average weekly hours are under 15.
- DB/DC retirement plans, interim settlements, multiple workplaces, and employer bonus practice are outside this simplified model.
Common input mistakes
- Confusing the termination date with the last working day can change both service days and the three-month period.
- Do not omit regularly paid fixed allowances or enter after-tax pay in monthly mode.
- Enter the annual bonus total, not a monthly or three-month share, because the calculator applies 3/12 itself.
Reference Knowledge
- ●South Korea's Employee Retirement Benefit Security Act describes statutory severance as at least 30 days of average wage for each year of continuous service.
- ●The Labor Standards Act average-wage concept is generally based on total pre-tax wages paid during the three months before the calculation event divided by total days in that period.
- ●This calculator uses the three months before termination as the average-wage period, and includes a three-month share of pre-tax annual bonus and pre-tax unused annual leave pay.
- ●If average weekly hours are under 15 or continuous service is under one year, statutory severance may not apply, so the displayed severance amount is 0.
- ●Retirement income tax, pension-plan setup, interim settlement, leave periods, work-injury periods, pay cuts, and bonus payment practice require separate review.
FAQ
Q.What formula does this calculator use?
It multiplies applied average daily wage by 30 days, then prorates by service days divided by 365. For example, if the average daily wage is KRW 100,000 and service is exactly two years, the simple estimate is KRW 100,000 × 30 days × 2 years. Wage inclusion and excluded periods can vary by case, so the result is a planning estimate.
Q.What is the difference between monthly mode and direct mode?
Monthly mode converts one monthly pre-tax wage amount, including fixed allowances, into a three-month wage amount for quick estimates. Direct mode is better when you know the actual pre-tax wage total from the last three months, especially with variable allowances, overtime, shift pay, or irregular monthly pay.
Q.Why are bonus and unused leave pay prorated?
A common practical approach includes the three-month share of pre-tax annual bonus and pre-tax unused annual leave pay in the average-wage amount. For example, a KRW 4,000,000 annual bonus contributes roughly KRW 1,000,000 to the three-month average-wage amount. Company rules and the character of each payment can affect the final treatment.
Q.Will this match the final amount paid by my employer?
Not necessarily. Final settlement can vary by retirement income tax, pension plan, interim severance settlement, leave or absence periods, wage-item classification, and employer rules. Use this as a reference estimate.
Q.Is the severance estimate before or after tax?
It is a pre-tax severance estimate. The calculator does not subtract retirement income tax, local income tax, pension-plan handling, or company-specific settlement adjustments. The deposited amount can therefore be lower than the displayed amount.
Q.What if the employee worked less than one year?
Statutory severance is generally assessed with at least one year of continuous service and at least 15 average weekly hours. This calculator flags cases below those assumptions as potentially not eligible. Separate company rules or contractual promises can still provide additional payments.
