Korea severance pay in 2026: eligibility, average wage and formula
A sourced guide to Korea’s statutory severance-pay baseline and the Ministry of Employment and Labor calculation.
Korean statutory severance pay is not simply one month of salary. You must first check continuous service, scheduled weekly hours, the applicable daily wage and any excluded periods. This guide explains the general baseline verified against Korean government sources on August 11, 2026.
Eligibility baseline
The general statutory baseline covers a worker with at least one year of continuous service and an average of at least 15 scheduled hours per week over four weeks. Worker status and excluded periods can require an individual assessment.
Applicable wage
Severance is generally calculated from average wage. If the calculated daily average wage is lower than the applicable daily ordinary wage, the ordinary-wage amount may be used.
Retirement date entry
The Ministry calculator instructs users to enter the day after the final working day as the retirement date.
Core formula
Estimated severance = applicable daily wage × 30 × continuous-service days ÷ 365.
If the applicable daily wage is KRW 100,000 and recognised continuous service is 730 days, the estimate is 100,000 × 30 × 730 ÷ 365 = KRW 6,000,000. Tax, interim settlement and excluded periods are not included.
What to check
- Confirm the hire date and enter the day after the final working day as the retirement date.
- Prepare pre-tax wages for the relevant three-month period and its actual calendar-day count.
- Check annual bonuses, qualifying annual-leave pay and periods excluded from average wage.
- Seek advice from the competent labour office or a professional when employment status or wage items are disputed.
The UCALX calculator applies a general statutory formula for reference. Executive or freelancer worker status, leave, childcare leave, interim settlement and the treatment of individual wage items require separate review.
Official sources checked
Standards can change. These links are provided so you can verify the current primary source.
Korea Severance Pay Calculator
Apply the baseline above with your own dates and figures.