Korea Severance Pay Calculator (법정 퇴직금 계산기)
Determine statutory retirement severance pay under Workers' Retirement Benefits Guarantee Act Art. 8 (30 days average wage per year served).
⚖️ 근속기간 및 임금 내역 설정 (Tenure & Wage Data)
예: 월 400만원 × 3개월 = 1,200만원
3/12 (25%) 반영됨.
3/12 (25%) 반영됨.
근로자퇴직급여 보장법 제8조에 따라 산출된 법정 퇴직금 총액입니다.
퇴직금 산정 명세서 근로기준법 제2조
| 항목 (Item) | 산출 공식 (Formula) | 금액 (KRW ₩) |
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❓ 자주 묻는 법정 질문 (FAQ)
What is the statutory requirement for severance pay (퇴직금) in South Korea?
Under Article 8 of the Guarantee of Workers' Retirement Benefits Act (근로자퇴직급여 보장법), an employer must pay severance to any employee who has worked continuously for at least one full year (365 days) with an average of at least 15 contractual hours per week.
What is the statutory formula for calculating Korean severance pay?
Severance Pay = `(3-Month Average Daily Wage × 30 days) × (Total Continuous Service Days ÷ 365)`. Average Daily Wage includes all wages paid during the 3 months prior to retirement, plus 3/12ths of all regular annual bonuses and 3/12ths of unused annual leave allowances.
What is the Ordinary Wage Guarantee rule for severance pay in Korea?
Under Article 2(2) of the Labor Standards Act, if the calculated Average Daily Wage (평균임금) is lower than the employee's Ordinary Daily Wage (통상임금), the Ordinary Daily Wage must strictly be used as the calculation base, protecting workers who took unpaid leave or worked reduced hours during their final 3 months.
When must statutory severance pay be disbursed to the retired employee?
Under Article 9 of the Act, the employer must disburse the full severance settlement within 14 days of retirement. Delay beyond 14 days without mutual written agreement incurs a statutory late interest penalty of 20% per annum under the Labor Standards Act.
Are severance pay lump sums taxed under ordinary income tax in Korea?
No. Retirement income receives favorable separate taxation (퇴직소득세) under the Income Tax Act. It is subjected to service tenure deductions (근속연수공제) and converting rate averaging (환산급여공제), resulting in substantially lower effective tax rates (typically 2% to 6%) compared to regular salary.
Engr. Muhammad Shahzad
Verified Korean Labor & Statutory Systems SpecialistChartered Systems Engineer and International Labor Policy Analyst. Specializing in computational labor standards under the Korean Labor Standards Act (근로기준법), 4 Major Social Insurances (4대보험), National Tax Service (국세청) withholding schedules, and Housing Lease Protection statutory architectures.