Korean severance pay calculator

How it works

1. Enter the first and the last day worked; the leaving date is the day after.
2. Enter the monthly pay, or the pay of the last three months if you know it.
3. Add a bonus and leave pay if there were any; a quarter of each goes into the average.
4. The pay, the tax and the amount after tax appear with the working.

Frequently asked questions

How is Korean severance pay worked out?

Daily average wage × 30 × days of service ÷ 365 (Employee Retirement Benefit Security Act, art. 8). The average is the pay of the three months before the leaving date over their days, plus a quarter of the year’s bonus and leave pay.

Who is entitled?

Anyone who worked a year or more for the same employer at 15 hours a week or more on average, full-time, fixed-term or part-time.

How is it taxed?

By the retirement income tax: a service deduction, the annualised pay, the annualised deduction and the basic rates, spread back over the years of service. Paid into an IRP account, the tax is deferred.

Is this professional advice?

No, it is a calculator. Contracts, collective agreements and individual circumstances can change the figures.

Is what I type sent anywhere?

No. The sums are worked out in your browser and nothing you type is sent or stored.