Korean Severance Pay Calculator
Enter your start date, last working day and last three months of pay to get Korean statutory severance pay, Korean retirement income tax and the net amount, using the labor ministry’s method.
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Korean Severance Pay Calculator: complete guide
Walk through the steps and examples, or jump straight to the topic you need.
At a glance
- Formula
- Average daily wage x 30 days x (days of service / 365).
- Days of service
- Counted by including both the start date and the last working day.
- Average daily wage
- The total wages for the three months before leaving (annual bonuses and annual leave pay at 3/12) divided by the number of calendar days in that period, rounded up to two decimal places like the Ministry of Employment and Labor calculator.
- Last working day
- Enter your last day of work. In the Ministry and Naver calculators the retirement date is the following day.
- Days in the three months
- Calculated automatically from the last working day. For July to September it is 92 days. You can also edit it.
- Ordinary wage
- If entered, it is compared with the average wage and the larger one is used.
- Under one year
- It calculates but notes that you may not be entitled to statutory payment.
- Cross-check
- The formula with your numbers filled in is shown on screen.
- Retirement income tax
- Estimated by the Korean National Tax Service method (years-of-service deduction, converted salary, converted-salary deduction, basic tax rates, then divided by 12 and multiplied by years of service), with 10% local income tax added to give the after-tax amount.
- Years of service
- From the start date to the last working day, counting any part of a year under one year as a full year.
- Where it runs
- Calculated only in this browser; your wage information is not sent to a server.
How to use Korean Severance Pay Calculator
Enter your start date and last working day
Enter them with a four-digit year and two-digit month and day, like 2026-01-31. The last working day is your final day of work. Days of service include both days, so starting on January 1 and leaving on December 31 gives 365 days.
Enter your total wages for the three months
This is the pre-tax total of base pay and allowances received in the three months just before you left. Enter bonuses and annual leave pay received during the year before leaving as annual amounts in the fields below, and only 3/12 is added. What to include depends on your company rules, so the tool does not decide. The number of days in those three months is calculated automatically from the last working day (if your last working day is September 30, it is July 1 to September 30, 92 days).
Add your ordinary wage if you have it
If your daily ordinary wage is higher than the average wage, the calculation must use the ordinary wage. When you enter a value, the tool compares the two, calculates with the larger one and states which it used in the result. If you do not know it, you can leave it blank.
Check it against the formula
Below the result is a formula with your numbers filled in. If the amount differs from the settlement statement from your employer, this formula lets you find right away whether the average daily wage or the days of service is different.
What it’s good for
The formula is never hidden
Korean statutory severance pay is the average daily wage multiplied by 30 days, then multiplied by days of service divided by 365. This tool does not just give you a result; it shows the formula with your own numbers filled in. If the figure differs from the settlement statement you got from your employer, you can find right away which number is different.
If ordinary wage is higher, it is used instead
When the average wage is lower than the ordinary wage, the calculation must use the ordinary wage. If you enter the daily ordinary wage, the tool compares the two values, calculates with the larger one and states which one it used in the result. If you leave it blank, only the average wage is used.
Worked examples
One year of work
2025-01-01 to 2025-12-31 - 3 months: 9,200,000 KRW - 92 days (Oct to Dec, automatic)Average daily wage 100,000 KRW
Estimated severance pay 3,000,000 KRWWhen ordinary wage is higher
Same conditions - daily ordinary wage 120,000 KRWEstimated severance pay 3,600,000 KRWThe difference between the two wages
Swipe the table sideways to see the rest.
| Item | Meaning | When it is used |
|---|---|---|
| Average wage | Wages actually received in the last three months, divided into a daily amount | The default |
| Ordinary wage | The daily wage fixed to be paid regularly and uniformly | When it is higher than the average wage |
| Days of service | The total number of days from the start date to the last working day, counted inclusively | Used to work out the share of the period |
When the result isn’t what you expected
The amount differs from my company's calculation
Compare the average daily wage first. The most common differences are what was included in the three months of wages and in the bonus and annual leave pay shares, and how many total days were used. Because the formula appears on screen, you can match the numbers one by one.
I enter a date but nothing is calculated
The format must be like 2026-01-31. Please enter month and day with two digits. Dates that do not exist are not accepted.
I took a leave of absence
This tool does not handle leaves of absence. If there is a period that must be excluded from the average wage calculation, such as parental leave, you need to enter the wages and days with that period removed yourself. For the exact treatment, consult a labor specialist.
I am enrolled in a retirement pension plan
If the funding method is different, as with a defined contribution plan, the payment differs from this calculation. This tool follows the Korean statutory severance formula, and if you know the actual total paid, you can enter it in the retirement benefit field used for the tax calculation to see the retirement income tax again. If you receive it into an IRP account, the retirement income tax is deferred instead of withheld now.
Key terms
- Average wage
- The daily wage worked out by dividing the total wages for the three months before leaving by the number of days in that period.
- Ordinary wage
- The daily wage fixed to be paid regularly and uniformly.
- Days of service
- The number of days from the start date to the last working day. Both days are counted.
- Retirement income tax
- The tax on severance pay in Korea. The longer your years of service, the larger the deduction and the lower the tax.
Korean Severance Pay Calculator FAQ
What should I put in the three-month wages?
Include the base pay and all allowances received in that period. If you separately enter the bonuses and annual leave pay received during the year before leaving, only 3/12 of them is added. What counts depends on your company rules and employment contract, so the tool does not decide that and uses the values exactly as you enter them. The number of days in the three months is calculated automatically from your last working day.
Does it calculate if I did not complete one year?
It does. However, for less than one year the screen also tells you that you may not be entitled to statutory severance pay under Korean law. In that case the amount shown is a reference value calculated the same way.
Is it the same as what I will actually receive?
The estimated severance pay is the amount before tax, and below it the tool separately shows the after-tax amount with Korean retirement income tax and local income tax deducted. The retirement income tax follows the Korean National Tax Service method: years-of-service deduction, converted salary, converted-salary deduction and the basic tax rates, in that order, counting any part of a year under one year as a full year. If you receive it into an IRP account, tax is deferred instead of withheld now. Circumstances that must be excluded from average wage or years of service, such as a leave of absence, are not handled.
Which day should I enter as the last working day?
Enter the last day you actually worked. The retirement date used by the Korean Ministry of Employment and Labor and Naver calculators is the day after the last working day, so to match them, enter a date one day later than this tool's last working day. The average daily wage is rounded up to two decimal places, as in the Ministry's calculator, so entering the same values gives the same result down to the won.
Is the formula the same for fixed-term contracts?
If you worked continuously for one year or more, the same formula applies regardless of the type of contract. However, this tool does not judge eligibility.
I received an interim settlement
Enter the day after the interim settlement as the start date and only the period after that is calculated.
Is the wage I enter saved?
It is not saved. Refreshing the page returns it to the initial state.