Korea Severance Pay Calculator (Toejikgeum) — How Much You Get When You Leave a Job
Last verified: 13 September 2026 · Figures follow Korean law and official rates; confirm the current rate at the linked source.
If you have worked for the same employer in Korea for at least a year, averaging 15 or more hours a week, you are owed toejikgeum (퇴직금), a lump-sum severance payment, when you leave. The calculator above shows the legal minimum before tax. It opens with example figures, so replace them with your own dates and pay.
How it’s calculated
The law sets severance at 30 days of your average wage for every year of continuous service (Act on the Guarantee of Employees’ Retirement Benefits, Article 8). The Labor Standards Act (Article 2) defines average wage as your pay for the three calendar months before you leave, divided by the number of days in those months. The calculator works in three steps:
- Three months of pay: base pay for the last three months, plus three months of fixed allowances, plus 3/12 of the bonuses paid in the last 12 months, plus 3/12 of last year’s pay for unused annual leave.
- Daily average wage: that total divided by the calendar days in those three months (89 to 92, depending on the months).
- Severance: daily average wage × 30 × (days of service ÷ 365).
Service is counted from your first day up to the day before your leaving date, and part years count. If your average wage comes out lower than your ordinary wage (tongsang imgeum), the law uses the ordinary wage instead. The calculator doesn’t apply that floor, so check it if your pay dropped in the last three months.
Who this applies to
Nationality and visa type don’t matter. Every employer must provide a retirement benefit to employees with at least one year of continuous service who average 15 or more hours a week (Article 4). Contract, part-time and daily workers qualify on the same terms if they meet both conditions, and it makes no difference whether you resign, are dismissed or retire.
Your employer must pay within 14 days of your leaving date, unless you both agree to a later date (Article 9). If your company runs a retirement pension plan, the money comes through the plan instead. A defined benefit (DB) plan pays the same amount as statutory severance. With a defined contribution (DC) plan the payout depends on contributions and investment returns, so treat this result as a reference. Our guide to severance pay and retirement pensions explains the plans and the IRP account.
Worked example
The calculator’s default inputs are a start date of 1 September 2024 and a leaving date of 1 September 2026, so service runs through 31 August 2026. Base pay is ₩3,000,000 a month plus ₩200,000 of fixed allowances, with ₩2,400,000 of bonuses in the past year and ₩400,000 paid for unused leave.
| Step | Working | Result |
|---|---|---|
| Three months of pay | ₩9,000,000 base + ₩600,000 allowances + ₩600,000 (3/12 of bonuses) + ₩100,000 (3/12 of leave pay) | ₩10,300,000 |
| Calendar days | 1 June to 31 August 2026 | 92 |
| Daily average wage | ₩10,300,000 ÷ 92 | ₩111,957 |
| Service | 730 days ÷ 365 | 2 years |
| Severance before tax | ₩111,956.52 × 30 × 2 | ₩6,717,391 |
The result is ₩6,717,391, about 6.7 million won, before retirement income tax. At the same pay, 10 years of service would come to ₩33,586,957.
Where to check
- Act on the Guarantee of Employees’ Retirement Benefits (English translation, Korea Legislation Research Institute): Article 4 on who is covered, Article 8 on the 30-day rule, Article 9 on the 14-day deadline.
- Ministry of Employment and Labor: labor law information and counseling in English. If your employer doesn’t pay, you can file a complaint with the ministry.
Frequently asked questions
Do foreigners get severance pay in Korea?
Yes. Severance doesn’t depend on nationality or visa type. If you worked for the same employer for at least one year and averaged 15 or more hours a week, you are owed at least 30 days of average wage for each year of service.
Are bonuses included in severance pay?
Partly. 3/12 of the bonuses paid in the 12 months before you leave is added to your last three months of pay before the daily average wage is worked out. Last year’s pay for unused annual leave is added the same way.
When must my employer pay severance?
Within 14 days of your leaving date, unless you both agree to a later date. Late payment carries interest of 20% a year. If your employer doesn’t pay, you can file a complaint with the Ministry of Employment and Labor.