How do I calculate severance pay
Divide the total wages paid in the final 3 months before leaving by the actual number of calendar days in that period to get the average daily wage, multiply by 30, then multiply again by total days employed divided by 365. Example: 3-month wages of 9,000,000 KRW over 92 days, with 1,096 days of total service, gives a pre-tax severance of about 8,812,388 KRW.
Calculation steps
- Enter the hire date and last day of employment.
- Enter the total wages paid during the 3 months before the last day.
- Divide that total by the actual number of calendar days in the 3-month period to get the average daily wage.
- Multiply the average daily wage by 30 to get one month's average wage.
- Multiply that by total days employed divided by 365 to get the pre-tax severance pay.
Formula
severance (pre-tax) = (3-month wage total / days in that period) x 30 x (total days employed / 365)
- 3-month wage total = wages paid in the 3 months before the last day
- days in that period = actual calendar days in that 3-month span (typically 89-92)
- total days employed = calendar days from hire date to last day
Quick severance pay answers
Monthly wage around 3,000,000 KRW, 1 year of service — what's the severance pay?
With 3-month wages of 9,000,000 KRW over a 92-day period and 365 days employed, the average daily wage is 97,826.09 KRW; ×30 ×(365÷365) gives about 2,934,783 KRW pre-tax — close to one month's pay.
Same wage level, 3 years of service (1,096 days) — what's the severance pay?
Using the same 97,826.09 KRW average daily wage, ×30 ×(1,096÷365) gives 8,812,388 KRW pre-tax.
Is severance pay owed for under 1 year of service?
No — Korean law requires at least 1 year of continuous service (365-plus days) before statutory severance pay applies.
3-month wages of 12,000,000 KRW over a 91-day period, 730 days employed (2 years) — what's the severance pay?
Average daily wage 12,000,000 ÷ 91 = 131,868.13 KRW; ×30 ×(730÷365) = 7,912,088 KRW pre-tax.
3-month wages of 6,000,000 KRW over a 90-day period, exactly 365 days employed — what's the severance pay?
Average daily wage 6,000,000 ÷ 90 = 66,666.67 KRW; ×30 ×(365÷365) = 2,000,000 KRW pre-tax.
3-month wages of 15,000,000 KRW over a 92-day period, 1,825 days employed (5 years) — what's the severance pay?
Average daily wage 15,000,000 ÷ 92 = 163,043.48 KRW; ×30 ×(1,825÷365) = about 24,456,522 KRW pre-tax.
Does this severance figure include income tax?
No — it shows the pre-tax gross amount only; retirement income tax is not deducted.
Does the formula prorate bonuses or unused annual leave pay?
No — this simplified calculation doesn't fold bonuses or unused-leave pay into the 3-month wage base; for an exact figure, use the Ministry of Employment and Labor's official calculator.
Example calculations
| 3-month wage total | Days in period | Total days employed | Pre-tax severance |
|---|
| 9,000,000 KRW | 92 | 1,096 (3 yrs) | 8,812,388 KRW |
| 12,000,000 KRW | 91 | 730 (2 yrs) | 7,912,088 KRW |
| 6,000,000 KRW | 90 | 365 (1 yr) | 2,000,000 KRW |
| 15,000,000 KRW | 92 | 1,825 (5 yrs) | 24,456,522 KRW |
Frequently asked questions
Can I get severance pay with under 1 year of service?
Under Korea's Labor Standards Act, continuous service of less than 1 year is not eligible for statutory severance pay. This calculator shows a validation error if total days employed is under 365.
Does this calculator include retirement income tax?
No. It computes the pre-tax gross amount only. The actual amount received is this figure minus retirement income tax, which applies service-year deductions and a converted-income schedule — confirm with Korea's National Tax Service (Hometax) or your payroll department.
Are bonuses and unused-leave pay included in average wage?
They can be, but this calculator assumes your 3-month wage input already reflects whatever you were actually paid — it does not separately prorate bonuses or apply the detailed rules some cases require.
Why is the wage-period day count usually 89-92?
It's the actual number of calendar days in the 3 calendar months before the last day. Which months are included changes the count, since months run from 28 to 31 days.
This calculator applies only the basic average-wage formula as a pre-tax reference estimate. It does not deduct retirement income tax, does not precisely prorate bonuses or unused-leave pay into the 3-month base, and does not compare average wage against ordinary wage to use whichever is higher. For an exact figure, use the Ministry of Employment and Labor's official calculator or your payroll department.