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Enter the employment dates and the latest three months of wages to estimate severance pay right away.
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Estimated Severance Pay
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Run the calculator to estimate severance based on service period and average wage.
Severance Formula Guide
Statutory Severance Formula
Average Daily Wage × 30 days × (Service Days ÷ 365)
Under Korean labor law, severance generally applies after at least one year of continuous service.
How Average Daily Wage Is Calculated
Average daily wage is the total wage received during the last three months divided by the number of days in that period. Bonus and unused-leave allowance are usually added based on 3/12 of annual amounts.
Eligibility for Severance Pay
A severance obligation typically applies when continuous service is at least one year and the employee works 15 hours or more per week.
Related Guides
What is the difference between severance pay and retirement pension?
Review the basic difference between statutory severance and DB/DC retirement pension arrangements.
Read GuideWhy Salary and Take-Home Pay Differ
Understanding taxes and social-insurance deductions helps you estimate usable cash more accurately.
Read GuideHow to Plan for a Lump-Sum Goal
See how severance can be used as seed capital for a longer-term asset plan.
Read Guide