KEMI Tools

Severance Pay Calculator

Korean employees with one or more years of service receive at least 30 days' average wage per year of service when they leave. Enter dates, the last 3 months of wages, bonuses and leave pay to estimate statutory severance under Art. 8 of the Employee Retirement Benefit Security Act.

1. Employment period

Start date (first day)

End date means

Leaving date used: 2026-10-01 (day after last working day)

Average contract hours were 15+ per week (4-week average)Workers under 15 h/week are excluded (Employee Retirement Benefit Security Act Art. 4(1))

2. Wages for the last 3 months (gross)

Period 2026-07-01 – 2026-09-30 · 92 days. Enter base pay plus monthly allowances (incl. overtime, meal) for each slice.

07-01 ~ 07-31 (31d)

KRW

08-01 ~ 08-31 (31d)

KRW

09-01 ~ 09-30 (30d)

KRW

3. Bonus & leave pay (if any)

Bonuses paid in the last 12 months

KRW

3/12 is added to the wage baseAnnual-leave pay received in the last 12 months

KRW

Prior-year unused leave only

4. Ordinary-wage check (optional)

If the 3-month average falls below ordinary wage (e.g. after unpaid leave), the ordinary wage is used instead (LSA Art. 2(2)).

Monthly ordinary wage

KRW

Base + fixed allowancesMonthly hours basis

209 for 40 h/weekContract hours/day

Estimated severance (pre-tax)

Eligible

6,305,092 KRW

81,521.74 × 30 × 941 ÷ 365 = 6,305,092 KRW (truncated)

Days of service2024-03-04 ~ 2026-10-01941 d

3-month wages7,500,000 KRW

Bonus × 3/120 KRW

Leave pay × 3/120 KRW

Wage base7,500,000 KRW

Days in period2026-07-01 ~ 2026-09-3092 d

Average daily wage81,521.74 KRW

Daily wage appliedaverage wage81,521.74 KRW

Severance is due within 14 days of leaving (Act Art. 9). Retirement income tax is withheld from this amount. Inputs never leave your browser.

How to use

Enter the start date and either the last working day or the leaving date (the next day).
Enter gross wages for each of the three slices shown (or copy the first amount to all three).
Add bonuses and leave pay, and optionally the monthly ordinary wage for the floor check.

Eligibility

Under Art. 4(1) of the Employee Retirement Benefit Security Act, every employer must pay severance unless the worker served less than one year or averaged under 15 contract hours per week. It applies to workplaces of any size, including part-timers.

Formula

Severance = average daily wage × 30 × (days of service ÷ 365). The average daily wage is the wages paid in the 3 months before the leaving date divided by the number of days in that period (LSA Art. 2(1)6), plus 3/12 of the last year’s bonuses and leave pay. If this is lower than the ordinary daily wage, the ordinary wage is used (Art. 2(2)).

Example: start 1 Jan 2025, last day 31 Dec 2025, 9,200,000 KRW over 92 days → 100,000 KRW/day → 3,000,000 KRW.

Payment

Severance is due within 14 days of leaving (Art. 9), normally into an IRP account, and the claim expires after 3 years (Art. 10). Results here are pre-tax.

FAQ

Does exactly one year qualify?

Yes. Starting 1 Jan 2025 and working through 31 Dec 2025 is one year (leaving date 1 Jan 2026, 365 days). One day short means no statutory severance.

Which date is the leaving date?

The day after the last working day. The 3-month average is counted back from the day before it.

Do part-timers and small workplaces get severance?

Yes — the Employee Retirement Benefit Security Act applies to all workplaces, for workers with 1+ year of service averaging 15+ hours a week.

How are bonuses handled?

3/12 of bonuses and annual-leave pay received in the prior 12 months are added to the 3-month wage base.

Disclaimer — not legal advice

Results are estimates based on your inputs and the general reading of Korean labour law — not legal advice or an official assessment. Actual amounts depend on the employment contract, work rules, pay practice and individual circumstances. For disputes or exact figures, contact the Ministry of Employment and Labor helpline (1350) or a certified labour attorney.