Korean Severance Pay Calculator
Based on Korean Labor Standards Act §34 and the Employee Retirement Benefit Security Act. Formula: average daily wage × 30 × (service days / 365).
How to Use
Pick the hire date and leave date. Service days are computed automatically; a warning appears if the period is under 1 year (no statutory severance obligation).
Enter the total pre-tax wages received in the 3 months before leaving (base + fixed allowances), in KRW. Annual bonus and unused-leave pay are optional; if entered, 3/12 of each is added to the average wage.
Service period (Y years M months D days), average daily wage, and projected severance appear instantly. The figure is pre-tax — Korean retirement income tax is assessed separately under a special schedule.
FAQ
How is severance calculated?
Formula under Korean law: severance = average daily wage × 30 × (service days / 365). Average daily wage = (last-3-months wages + annual bonus × 3/12 + last-year unused leave pay × 3/12) / 3-months days.
Is there severance for under 1 year of service?
No statutory obligation. The Employee Retirement Benefit Security Act requires at least 1 year of continuous service for severance entitlement. Some employers pay voluntarily but are not legally required to. The tool warns when service is under 1 year.
Average wage vs. ordinary wage?
Korean law requires using the larger of average wage and ordinary wage. This tool uses average wage; if ordinary wage is higher, actual severance can exceed this result. Consult a labor attorney or the Ministry of Employment & Labor for an exact comparison.
Why multiply bonus and leave pay by 3/12?
Average wage covers the 'last 3 months', so we add only the 3-month portion of yearly bonus and leave pay: annual amount × (3/12) = 3 months' worth.
Will my actual payout differ?
It may. This tool returns a pre-tax estimate. Take-home is reduced by retirement income tax (separately assessed with service-year deductions) and local tax. Employers using ordinary wage or custom severance rules (progressive multipliers, etc.) may pay differently.
Is my input sent to a server?
No. All computation runs in your browser. Inputs are never sent over the network, never stored in localStorage or cookies. Closing the tab clears everything from memory.
