💼Severance Pay Estimator
Estimate Korean statutory severance pay from tenure, average wage, bonus, and unused leave. Useful before resignation, retirement, or comparing DB vs DC pension schemes.
How to use
- 1Enter your tenure (years, months, days).
- 2Enter your average monthly wage over the last 3 months before leaving.
- 3(Optional) Enter bonuses and unused leave pay.
- 4See the estimated severance amount.
FAQ
Is severance paid for less than a year of service?+
Under Korea's Labor Standards Act, severance is mandatory only for 1+ years of service. Under 1 year is up to company policy.
How is the average wage calculated?+
Total wages received in the 3 months before leaving ÷ total days in that period. Bonuses count at 3/12 ratio, unused leave pay at 3/12.
Average wage vs ordinary wage — which applies?+
Whichever is higher. Roles with lots of night/holiday work usually have a higher average wage; roles with mostly base pay may have higher ordinary wage.
What about retirement income tax?+
This tool shows pre-tax amounts. Retirement income tax in Korea includes a years-of-service deduction, so it's lower than regular income tax. Check Hometax for accurate net amounts.
What about DB vs DC retirement pensions?+
DB follows this same calculation. DC is based on annual employer contributions + investment returns, so results vary by plan type.
How do I get an exact figure?+
Ask your HR team or use the Ministry of Employment & Labor's official calculator. This tool is for quick estimates.