About this tool
This calculator estimates statutory severance pay in Korea. A worker is entitled to severance when they have worked continuously for at least one year and work an average of 15 hours or more per week. The formula is the average daily wage multiplied by 30 and by the days of service divided by 365. The average daily wage is the total pay for the three months before the last working day divided by the calendar days in those months (usually 89 to 92). One quarter of the bonuses paid in the last 12 months, and one quarter of unused annual leave pay earned in the previous year, are added to the three-month total. For example, if you worked from January 1, 2024 to September 30, 2026 (1,004 days) and earned 3,000,000 won a month, the three-month pay is 9,000,000 won over 92 days, so the average daily wage is about 97,826 won and severance is about 8,072,662 won before tax. If your ordinary daily wage is higher than the average wage, the ordinary wage is used, which this tool does not check. Retirement income tax is not calculated here, so the result is the amount before tax. It is a reference estimate and does not replace advice from a labor or tax professional.
How to use
- Pick your start date and last working day.
- Enter your monthly pay, or type the exact total pay of the last 3 months.
- Add bonuses and unused leave pay if you have them (optional).
- Read the days of service, average daily wage and estimated severance pay before tax.