Average daily wage (last 3 months) × 30 days × service days ÷ 365
Input
Result
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How it works
Employees who worked 1 year or more and at least 15 hours a week are entitled to severance pay (Employee Retirement Benefit Security Act Art. 8).
Average wage = wages for the 3 months before leaving ÷ number of days in that period, plus 3/12 of annual bonus and unused leave pay.
It must be paid within 14 days after leaving. Foreign workers (incl. E-9) are entitled under the same rules; E-9 workers usually receive it through departure guarantee insurance.
FAQ
Am I entitled to severance pay as a foreigner in Korea?
Yes. Anyone who worked 1 year or more for at least 15 hours a week is entitled regardless of nationality.
How is severance pay calculated in Korea?
Average daily wage × 30 days × (days of service ÷ 365). The average daily wage is based on the last 3 months of pay.
Worked example
Example: with ₩9,000,000 earned in the last three months (92 days), the average daily wage is about ₩97,826. After 1,703 days of service, severance is ₩97,826 × 30 × 1,703 ÷ 365 ≈ ₩13,692,972 before tax — roughly one month's average pay per year worked.
Common mistakes
Severance requires at least one year of service and an average of 15 hours or more a week.
Annual bonuses that count as wages, and leave pay that qualifies for the average wage, are added at 3/12; leave pay arising only because you quit is generally excluded.
Retirement income tax is withheld if you take a lump sum, but deferred if the money goes into an IRP; employers must pay within 14 days of your last day.