Severance Pay Calculator
Calculate statutory severance pay based on your hire/leave dates and average wage. (Avg. daily wage × 30 × service days/365)
Employment Details
Pre-tax monthly pay incl. base pay and allowances
Estimated Severance Pay (Pre-tax)
₩19,594,699
* Paid after 1+ year of service. Actual average wage varies by which bonuses/allowances are included; severance income tax is separate.
Related life info & benefits
The severance pay calculator computes the statutory severance pay owed to an employee with at least one year of tenure, based on average wage. It multiplies the average daily wage — reflecting the last three months' wages plus a portion of bonuses and unused annual leave pay — by 30 days and the ratio of days employed.
Average wage and the formula
Statutory severance pay = average daily wage × 30 days × (days employed ÷ 365). Average daily wage is the total wages paid over the three months before resignation divided by the number of calendar days in that period, including a portion of bonuses and annual leave allowance. If ordinary wage is higher than average wage, ordinary wage is used instead.
Who is eligible
Any employee who worked at least 15 hours a week for one year or more is entitled to severance pay, regardless of whether they're full-time, contract, or part-time. Those with under one year of tenure or extremely short hours are excluded.
Frequently Asked Questions
Are bonuses included in severance pay?
Regularly paid bonuses have 3/12 of the annual amount folded into average wage, increasing severance pay.
Is severance pay taxed?
Retirement income tax applies, but thanks to tenure-based deductions the burden is much lower than regular income tax.
By when must severance pay be paid?
In principle, within 14 days of the resignation date, though the deadline can be extended by mutual agreement.
How do retirement pension plans (DB/DC) differ from statutory severance pay?
A DB plan is managed by the employer and guarantees the same level as statutory severance pay; a DC plan lets the employee invest annual contributions themselves, so the payout depends on investment performance.
What happens if I received an interim settlement?
Tenure is recalculated from the settlement date, so average wage and days employed are based on the period since that settlement.
Is annual leave allowance included in average wage?
The portion equal to three months' worth of leave allowance — earned from work two years before resignation and paid in the year before resignation — is included in the average wage calculation.
* For reference only. Actual payment follows the employer's wage calculation and applicable law.
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