Who gets severance pay in Korea?
Any employee, Korean or foreign, who worked at least one year for the same employer and averaged 15 hours or more per week is entitled to severance pay (퇴직금) when leaving, whatever the reason for leaving. It must be paid within 14 days of your last day.
Formula
Average daily wage (total pay of the last 3 months ÷ calendar days in those months, with 3/12 of annual bonuses and leave pay added) × 30 days × (days of service ÷ 365).
- E-9 and H-2 workers usually receive severance through Departure Guarantee Insurance (출국만기보험) plus any difference from the employer.
- Severance is taxed separately at a low effective rate (retirement income tax).
Unpaid severance can be reported to your local labor office (1350).
Rates and thresholds follow Korean rules in force for 2026. Results are estimates for planning, not legal or tax advice.
Read in Korean: 퇴직금 계산기