Severance Pay Calculator — How to Calculate Your Severance Pay from Average Wage

As you near leaving a job, you're bound to wonder, "How much severance pay will I get?" In Korea, severance pay is available if you've worked at least one year, and it's calculated from your average wage over the final three months before leaving, together with your length of service. This article walks through how to calculate your severance pay yourself.

How Severance Pay Is Determined

• Eligibility — At least 15 hours per week on average, with one year or more of continuous service.
• Average wage — Total wages over the three months before leaving ÷ the number of days in that period. Bonuses and allowances are included.
• Formula — Daily average wage × 30 days × (days of service ÷ 365).

How to Calculate — 1 Step

1. Enter your start date, end date, and last three months of pay (and, if applicable, annual bonus and unused-leave allowance) into the Severance Pay Calculator, and your average wage and estimated severance pay are calculated instantly.

When to Use It

• Estimate the severance pay you'll receive before resigning or changing jobs.
• Verify that the severance pay your employer paid was calculated correctly.
• As a reference for estimated retirement pension (DB/DC) amounts.

Calculators Worth Pairing With This

For your take-home pay while still employed, try the Net Salary Calculator, and for planning how to manage the severance you receive, the Savings & Deposit Calculator.

Frequently Asked Questions

Q. Is there no severance pay if I don't complete a full year?
Statutory severance pay is based on at least one year of service. For under one year, it may vary depending on company policy.

Q. Are bonuses and unused-leave allowances included?
Yes. The average wage includes regular bonuses, unused annual-leave allowances, and the like, according to set rules.

Q. Is my salary information transmitted anywhere?
No. Everything is calculated in your browser, so nothing is stored or sent.