Overview

The Severance Pay Calculator computes statutory severance pay under Korea's Labor Standards Act (Article 34). Employees who have worked continuously for one year or more are entitled to severance pay based on the average wage of the last three months of employment.

Formula

Severance Pay = Daily Average Wage × 30 days × (Total Service Days ÷ 365)

• Daily Average Wage = Total wages for last 3 months ÷ Total calendar days in that period
• 3-month total wages = Base salary + Fixed allowances + (Annual bonus × 3/12) + (Annual leave pay × 3/12)
• If average wage is lower than ordinary wage, ordinary wage applies

How to Use

1. 1Enter the start date and end date of employment.
2. 2Enter the base salary and fixed allowances for the last 3 months before resignation.
3. 3Enter total annual bonus and annual leave pay if applicable.
4. 4Click 'Calculate' to see the total severance pay amount.

Tips

• ✔Employees with less than one year of service are not legally entitled to severance pay.
• ✔Bonuses and unused annual leave pay must be proportionally included in the 3-month average wage.
• ✔Severance must be paid within 14 days of the resignation date.
• ✔Severance income tax is calculated separately with service-year deductions.

FAQ