Korea severance pay calculator
Estimate Korean severance pay as average daily wage x 30 x service days / 365, from three-month wages plus a quarter of bonus and leave pay.
Formula: average daily wage × 30 × service days ÷ 365. Average daily wage uses the prior three months of wages plus one quarter each of annual bonus and annual leave allowance; the higher ordinary daily wage can apply. This is a pre-tax estimate.
What to know
This page follows the long-established Korean average-wage method. The average daily wage is (wages for the prior 3 months + annual bonus / 4 + annual leave allowance / 4) / the calendar days in that 3-month window, and severance = daily wage x 30 x service days / 365.
Worked example: service from 2023-01-01 to 2025-01-01 (the day after the last workday) is 731 days. With 9,000,000 in wages over 92 days the daily wage is 97,826.09, so severance is 97,826.09 x 30 x 731 / 365 = 5,877,606. Adding an annual bonus of 2,400,000 lifts the daily wage to 104,347.83 and severance to 6,269,446.
The optional ordinary daily wage works as a floor: the page takes the larger of the average and the ordinary figure, so an ordinary daily wage of 120,000 overrides the lower average and gives 7,209,863 for 731 days. Service days are end minus start, which is why the end date is the day after the final workday.
It does not check the usual eligibility conditions, such as at least one year of service and 15 hours a week. The result is a pre-tax estimate, and retirement-income tax and the pension route are not modelled. Confirm the figure with the employer or the labour office.
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How to use Korea severance pay calculator
- Enter Service start date 2023-01-01 and Day after the last workday 2025-01-01.
- Keep Average-wage calendar days at 92 and set Wages for the prior 3 months to 9,000,000.
- Add an Annual bonus total of 2,400,000 if there is one.
- Read Estimated severance pay, which shows 6,269,446, plus the applied daily wage and 731 service days.
Quick answers
Why is the end date the day after the last workday?
Service days are end minus start. Using the next day counts the last day worked, so working all of 2024 is 366 days.
How much of the bonus is counted?
A quarter of the annual bonus total and a quarter of the annual leave allowance are added to the three-month wages before dividing by the period days.
What does 92 days mean?
It is the number of calendar days in the three months before the last day, for example 31 + 30 + 31 = 92. Count the days of your own window.
Is the amount after tax?
No. It is gross, before any retirement-income tax or withholding.