Legal & Tax Calculators
🌐 English

The calculation you need, step by step

Severance pay calculator

Enter employment dates and wages before leaving to check average wages, days of service and a pre-tax severance estimate.

Information needed

Enter amounts in Korean won (KRW), without commas. Do not enter names or resident registration numbers.

If higher than the average wage, the ordinary wage is used. You cannot establish a final amount without knowing it.

After changing an entry, calculate again. This calculator does not transmit or store your entries.

Reference results

Check the entries, then select Calculate.

Thirty days' average wages and continuous service

Ordinary severance under the Act on the Guarantee of Employees' Retirement Benefits is based on at least 30 days' average wages per year of continuous service. This tool uses the Ministry of Employment and Labor formula: daily average wage × 30 × days of continuous service ÷ 365. It indicates that ordinary statutory requirements are not met if service is under one year or contractual weekly hours averaged over four weeks are under 15.

Entering dates and wages

The start date is included; enter the termination date as the day after the last working day. Calendar days in the three months before termination are calculated automatically. Enter eligible wages for that period, including base pay and other allowances. Multiplying a single month's salary by three may not equal actual wages for the period.

Average wage = [wages for the period + eligible annual bonuses × 3/12 + eligible annual leave allowance × 3/12] ÷ calendar days in the period. Do not enter bonuses or leave allowance again if already included in the three-month wages. Eligible leave allowance does not mean every allowance arising on termination. If the daily ordinary wage exceeds the daily average wage, the higher amount is used.

Example and exceptions

The Ministry's example uses KRW 7,080,000 in three-month wages, KRW 4,000,000 in annual bonuses, KRW 300,000 in eligible leave allowance and 92 days, giving an average daily wage of about KRW 88,641.30. For 1,080 days of service, pre-tax severance is approximately KRW 7,868,434.

This tool does not automatically assess excluded periods such as parental leave, occupational injury or probation, or whether they count towards service. Do not use this simplified calculation if such periods apply. Defined-contribution pension balances, legal classification of ordinary-wage items, interim settlements and retirement income tax are also excluded.

Official calculation guidance

Ministry of Employment and Labor · Severance guidance and calculator ↗: check again, taking excluded periods and other relevant factors into account. This is a pre-tax reference amount, not a determination of payment or entitlement.

Calculation basis and official sources

This material is based on sources checked on November 7, 2026 (KST). Check subsequent amendments and transitional provisions for your particular case separately.