Severance Pay for Foreign Workers in Korea: Leaving Your Job or the Country

Checked on 2026-11-02

Foreign workers have the same right to severance as Korean workers. You qualify after one year or more of work, if you averaged at least 15 hours a week over four weeks. Contract and part-time work count if you meet those conditions.

The basic formula

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

That is about one month of average pay per year. The average daily wage uses your last three months of pay, and it can also include a share of bonuses and unused leave pay. For example, five years of work with ₩9 million paid in the last three months gives about ₩14.67 million, assuming those three months total 92 days.

When it must be paid

Your employer must pay within 14 days of your last day, unless you both agree to extend it. A monthly salary that claims to include severance is generally not accepted as payment of severance.

Severance generally goes into an individual retirement pension (IRP) account. This does not apply if you worked on a work-eligible status and leave Korea after you retire, or if the amount is small.

E-9 workers: departure guarantee insurance

Employers of E-9 workers must take out departure guarantee insurance. It is designed to replace ordinary severance, with these rules:

• You can claim after working continuously for one year or more, when you leave Korea or your status changes.
• Payment is made within 14 days after you depart. If you apply after departure, or the claim is due to a status change, it is 14 days from your application.
• If the insurance pays less than legal severance, your employer owes you the difference.
• You must claim within 3 years.

Rules for other statuses, including H-2, can differ, so check your own case with the labor office.

Before you leave Korea

1. Confirm your final pay, unused leave and severance in writing.
2. Give your employer your overseas bank account details if payment will arrive after you leave.
3. Check whether you can claim a National Pension refund.
4. Ask your employer about year-end tax settlement for your final year.

If you are not paid

File a petition with the regional labor office for your workplace. Late severance carries 20% annual interest. If the company has closed, a government substitute payment may cover part of it. For insurance questions, foreign workers can call the Foreign Workforce Counseling Center at 1577-0071.

Official sources

• Easy Law: departure guarantee insurance for foreign workers
• Easy Law: four social insurances for foreign workers (as of 2026-10-15)
• National Pension Service: social security agreements

This is general information based on public laws and government pages, not legal or tax advice. Rules can change, so confirm with the agency concerned. Spotted a mistake? Tell us