How Korean severance is calculated
Statutory severance is average daily wage × 30 × (days employed ÷ 365). You qualify after one continuous year; less than a year has no statutory entitlement.
The average daily wage is your total pay over the last three months divided by the days in that period, and it includes 3/12 of your annual bonus and 3/12 of annual-leave allowance. If the average wage falls below your ordinary wage, the ordinary wage is used instead. Enter your join and leave dates and recent monthly pay above.
See the salary calculator or unemployment benefit calculator.
Severance for foreign workers
Severance in Korea does not depend on nationality or visa: one continuous year with an average of 15+ hours a week qualifies, and this calculator works the same for you.
If you work under the Employment Permit System (E-9, H-2), your employer must pay monthly into Departure Guarantee Insurance (출국만기보험), which stands in for severance:
- It is paid within 14 days after you leave Korea (or 14 days from your claim if you change visa status or claim after departure) — you can collect it at the airport or receive it in your home bank account.
- The claim expires 3 years after it becomes payable, so don’t leave it unclaimed.
- The insurance is based on ordinary wages, while statutory severance uses the average wage. If you did a lot of overtime, the insurance can come to less than your legal severance — the employer owes you the difference. Use this calculator to check.
Severance is taxed as retirement income, which is usually far lower than tax on salary. For questions, contact the Ministry of Employment and Labor (1350) or the EPS support center for foreign workers (1577-0071).