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🇰🇷South Korea Severance Pay Calculator

Calculate statutory Korean severance pay (퇴직금) using 3-month average daily wage, service days, and retirement income tax (퇴직소득세) deductions.

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South Korea Severance Framework

Labor Standards Act Article 34 (근로기준법 법정퇴직금) • Currency: KRW ($)

Employment & Wage Parameters

$
$100,000$30,000,000
yrs
0 yrs40 yrs
mos
0 mos11 mos
$
$0$50,000,000
days
0 days45 days
Estimated Net Severance Take-Home
$14,812,097
Gross Total$15,032,967
Est. Taxes$220,870
Effective Tax1.5%
Applied Statutory Calculation Formula:

Average Daily Wage (₩125,275) × 30 days × (1,460 days / 365)

Take-Home$14.8M

Severance Package Distribution

Net Take-Home99%
$14,812,097
Withheld Taxes1.5%
$220,870

Statutory Severance Itemized BreakdownTotal Service: 48 continuous months

3-Month Average Daily WageBase monthly salary + pro-rated annual bonus
$125,275
Statutory Severance Base30 days average wage per continuous service year
$15,032,967
Estimated Retirement Tax (퇴직소득세 + 지방세)근속연수공제 → 환산급여 × 12 / 근속연수 → 환산급여공제 → 세율 × 근속연수 / 12
$220,870

South Korea Statutory Termination Law: Labor Standards Act Article 34 (근로기준법 법정퇴직금)

Under Article 34 of the South Korean Labor Standards Act, an employer must pay resigning or dismissed workers who have completed at least one year of continuous service an amount equal to 30 days or more of average wage for each year of service. Average wage includes base pay plus 3/12ths of annual bonuses and unused annual leave allowances.

Mandates 30 days of average wage for each continuous year worked for employees with 1+ year service.
Calculates average daily wage over the prior 3 calendar months, incorporating pro-rated annual bonuses and unused leave pay.
Estimates Retirement Income Tax (퇴직소득세) with the service-year deduction, 환산급여 conversion and local income tax.
Compares statutory mandatory severance against voluntary additional severance multipliers.

Compare with Other International Severance Models

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NetherlandsEUR
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GermanyEUR
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AustriaEUR
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BelgiumEUR
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United KingdomGBP
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United StatesUSD
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BrazilBRL
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SpainEUR
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MexicoMXN
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ColombiaCOP
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ChileCLP

Frequently Asked Questions

What is the statutory severance formula in South Korea?

Under Article 34 of the South Korean Labor Standards Act, an employer must pay resigning or dismissed workers who have completed at least one year of continuous service an amount equal to 30 days or more of average wage for each year of service. Average wage includes base pay plus 3/12ths of annual bonuses and unused annual leave allowances.