Blackdog Economy Lab
Home› Korean Severance Pay Calculator

Korean Severance Pay Calculator

Leaving your job?
Estimate your severance pay.

Enter two dates and your monthly gross pay to get an estimate.

Employment and wages

Reset

Use the last date agreed with your employer, including any leave before departure.

Retirement date for calculation: 2026-10-09

Wages in the final 3 months

Wage period: 2026-07-09 ~ 2026-10-08

Enter one month’s gross pay, not the 3-month total. The estimate assumes the same monthly pay throughout the final 3 months.

Add bonuses or unused leave pay (optional)

Leave blank if none. Include only eligible wage payments not already in monthly pay. One quarter of the annual total is included. Exclude leave pay that first becomes payable on retirement.

Pre-tax estimate in Korean won. DC retirement plan balances are excluded.

How it works

How the estimate works

The calculator estimates daily average wages from the final three months and applies your full employment period. The example below shows how monthly gross pay becomes a severance estimate.

  1. Monthly gross payEstimate wages for the final three months
  2. Daily average wageDivide eligible wages by the days in that period
  3. Severance estimateApply daily average wages and employment days
01

Count employment through the last employment date

Both the hire date and last employment date count. Use the final date of your employment relationship agreed with your employer. This can differ from your last day at work, especially if you take leave before departure.

The retirement date used in the calculation is the following day. Employment through October 7 therefore uses October 8 as the retirement date.

02

Use recent pay, without entering every past annual salary

You do not need to enter each annual salary since you joined. The calculator uses your full employment period for service and the final three months for wages.

Enter one month’s pay before tax and insurance deductions. Do not enter the three-month total or take-home pay. This simple estimate assumes that monthly pay stays the same throughout the period. Recent changes in pay or allowances can affect the actual amount.

03

Apply employment days to daily average wages

Daily average wage = (wages for the final three months + eligible additional payments) ÷ days in that period

Severance = daily average wage × 30 × employment days ÷ 365

Three months means calendar months, rather than a fixed 90 days. Partial months use calendar-day proration. Each period’s wages round to whole won. The displayed daily average wage is rounded; the final calculation uses the unrounded value.

04

Example: ₩3 million monthly pay and three years of service

This hypothetical example uses employment from November 1, 2023 through October 31, 2026, monthly gross pay of ₩3 million, and no separate bonus or unused leave payment.

Employment days
1,096 days
Wage period
~
Three-month wages
₩9,000,000
Days in wage period
92 days
Daily average wage
₩97,826
Estimated severance · pre-tax
₩8,812,388

The result differs slightly from ₩9 million, or monthly pay multiplied by three years. The wage period has 92 days, and employment includes a leap day. This illustrates the constant-pay assumption and does not guarantee an actual payment.

05

Add optional payments only when applicable

Bonuses
Enter eligible bonuses for the last year that are not already included in monthly pay. One quarter of the annual total is added when calculating average wages. Do not count the same payment twice.
Unused leave pay
Include only eligible payments whose payment entitlement arose before retirement. Exclude leave pay that first becomes payable because of retirement. Ask payroll if eligibility is unclear.
If there are no additional payments
Blank optional fields count as zero. Dates and monthly gross pay are enough to calculate an estimate.
06

Common questions

Who is generally eligible?

Generally, continuous employment must last at least one year, with contractual hours averaging at least 15 per week over four weeks. Shorter employment shows a formula reference only. Working-hour eligibility is not checked automatically.

Why might my employer quote a different amount?

This is a pre-tax estimate based on average wages and constant monthly pay. It excludes actual pay changes, leave, prior settlements and employer proration rules. A higher statutory ordinary wage could increase the actual amount; this calculator does not make that comparison.

Does this include tax or DC retirement plan balances?

No. The result is before retirement income tax. DC plan balances depend on contributions and investment performance; check them with your plan provider.

When should payment arrive?

The general rule is within 14 days of the payment event, with extensions by agreement in special circumstances. Confirm the payment date and IRP transfer process with your employer.

Are entered wages saved or published?

This calculator does not save calculation history or create share URLs. Reset it after use on a shared device.