Retirement Pay Calculator
Estimate Korean statutory severance pay before tax from your start date, separation date, and wages before separation.
Input
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Result
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The separation date is the day after your last working day. Enter total wages for the 3-month calculation period shown before separation. Include 3/12 of each: the total bonus from the prior 1 year and the prior annual-leave allowance. This is a simple check for continuous service of at least 1 year and an average of at least 15 scheduled work hours per week over 4 weeks. It does not assess periods excluded from average wages, periods when work hours move above or below 15, employee status, leave, work suspension, or other exceptions. Confirm actual payments and retirement income tax using Korea’s Ministry of Employment and Labor calculator and company records.
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Calculation·conversion criteria
Enter your start date, separation date, and wage details to estimate average wages before separation and Korean statutory severance pay.
Input example
Start Date: 2023-10-06, Retirement Date: 2026-10-06 (the day after the last work day), 9,000,000 won for 3 months before retirement, 40 hours per week is used as an example.
The general Korean statutory formula is average daily wage × 30 × days of continuous service ÷ 365. For this example, the separation date is the day after the last working day. Average daily wage uses wages paid in the preceding 3 months divided by calendar days in that period; the estimate also includes 3/12 of the prior-year bonus and annual-leave allowance where applicable.
How to use
- Use the example, or update your start date; separation date (the day after your last working day); total wages for the 3 months before separation (won); total bonuses from the prior 1 year (won); annual-leave allowance from the prior year to include (won; enter 0 if unknown); 1-day ordinary wage (won; enter 0 if unknown); and average scheduled work hours per week over 4 weeks.
- Click Verify result and check the following result.
- Result can be copied if needed.
Frequently Asked Questions
Do you enter the last work day as the retirement date?
No. Enter the next day after the last working day according to the Ministry of Labor and Employment calculator. The calculator treats the previous day as the last three months before retirement.
How do I identify who is eligible for retirement pay?
The general check indicates at least 1 year of continuous employment and an average of at least 15 scheduled work hours per 1-week period over 4 weeks. It does not automatically assess periods below 15 hours per week or changes in employee status.
Was it accurate to include leave, emergency, or maternity leave?
This period can be excluded from average wage calculation or adjusted based on service duration. Since this simple calculator does not automatically adjust this period, please check the official Ministry of Labor calculator and wage data.
Calculation criteria and reference materials
- Korean Law Information Center — Employee Retirement Benefit Security Act, Article 8.
Legal standard: Pay retirement benefits equal to 30 days of average wage for continuous employment of 1 year.
- Korea Ministry of Employment and Labor — statutory severance pay calculator
Rules for entering the retirement date, guidance on salary and working days in the last 3 months, excluded periods, bonuses, annual leave, and regular salary. This tool simplifies calculations for general salaries but does not handle excluded periods.
- Korea Ministry of Employment and Labor customer center — severance pay and average-wage formula
Severance pay = average daily wage × 30 × days of continuous service ÷ 365; average daily wage is total wages over the previous 3 months divided by the total days in that period. If ordinary wages are higher, use the ordinary wage.
- Ministry of Labor and Employment — 1-year and 15-hour weekly requirement for retirement benefits
Need for separate judgment for cases where continuous labor of 1 year and average weekly labor time of 15 hours in 4 weeks are combined with periods less than 15 hours.
Verification of calculation criteria: · Calculation·verification principles · Report errors