Severance Pay Calculator

Calculate Korean severance pay, retirement income tax, and after-tax amount from your start date, last day, and monthly pay

All calculations run in your browser. The dates and amounts you enter are never sent to a server

Calculates severance pay from your service period and pay, then shows the amount you receive after retirement income tax

Employment Details

Start date

Last day of work

Enter the last day you actually worked. The retirement date is counted as the following day

Monthly pay (pre-tax)

Base pay plus fixed monthly allowances, before tax. Assumes you were paid the same amount for the last 3 months

Annual bonus (optional)

Total bonuses received in the year before leaving. 3/12 of it is added to average wage

Annual leave pay (optional)

Total annual leave allowance received in the year before leaving. 3/12 of it is added to average wage

이 포스팅은 쿠팡 파트너스 활동의 일환으로, 이에 따른 일정액의 수수료를 제공받습니다.

Results

Enter your start date, last day of work, and pay to see results instantly

Use Cases

Check severance before resigning

Before handing in your resignation, check your expected severance and after-tax amount to plan living expenses while you look for your next job.

Compare when to leave

Try different last working days to see how much severance changes before and after reaching 1 year of service, or right after a raise.

Retirement after long service

The longer you work, the larger the years-of-service deduction and the lower the tax. Check the tax before deciding between a lump sum and pension payments.

Verify your employer's figures

Enter the severance your employer quoted in Tax Only mode to check whether the withheld retirement income tax is correct.

Severance Tips

An IRP account defers the tax

If you receive severance into an Individual Retirement Pension (IRP) account, the retirement income tax is not withheld right away, and a reduced rate applies when you later take it as a pension.

Check your 1-year date

If your service period is even one day short of 1 year, there is no statutory severance. Before setting your last day, confirm that a full year has passed since you started.

Average wage uses the last 3 months

Severance is based on pay in the 3 months before leaving, so working at least 3 months after a raise increases it. Periods of leave in that window are excluded from the calculation.

Use your payslips

For an accurate result, check the pre-tax amounts on your last 3 payslips plus the bonuses and leave pay you received over the past year.

Frequently Asked Questions

How is severance pay calculated in Korea?

Severance pay is 'daily average wage × 30 days × days of service ÷ 365'. The daily average wage is total pay over the 3 months before leaving divided by the number of days in that period, plus 3/12 of the bonuses and annual leave pay received over the past year.

How long do I need to work to receive severance?

If you have at least 1 year of continuous service and worked 15 or more hours a week on average over 4 weeks, you are entitled to severance whether you are a permanent, contract, or part-time worker. Even one day short of 1 year means no statutory severance.

How much retirement income tax will I pay?

The years-of-service deduction is subtracted from severance, the result is annualized (×12 ÷ years), and the annualized amount deduction is applied to get the tax base. The basic tax rates (6–45%) are applied and the result is scaled back by years of service. Longer service means larger deductions and less tax on the same amount. Local income tax adds 10% of the retirement income tax.

When must severance be paid?

Employers must pay severance within 14 days of the retirement date, and the deadline can be extended by agreement with the employee in special circumstances. As a rule it is paid into an Individual Retirement Pension (IRP) account, with exceptions such as retiring at age 55 or older.

Why is my result different from my employer's figure?

Differences arise if company rules pay more than the legal minimum, if leave or probation periods were excluded from the average wage period, or if your pay varied month to month. If you are enrolled in a retirement pension plan (DB or DC), the amount can also differ depending on how the plan is managed.

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