How is it calculated?
Severance pay is average daily wage × 30 days × (days of service ÷ 365).
- Average daily wage: total pay for the 3 months before your leaving date, divided by the number of days in that period.
- Only 3/12 of a year's bonuses and annual leave pay is added to the 3-month total.
- Your leaving date is the day after your last working day.
- You are usually eligible after at least one year of continuous service, working 15 hours or more a week on average.
If your average wage is lower than your ordinary wage, severance must be calculated with the ordinary wage. This calculator does not make that comparison, so if your pay dropped recently, ask your employer or the Ministry of Employment and Labor call center (1350, foreign-language support available).
Frequently asked questions
Q. Do I receive the full amount shown?
No. Retirement income tax and local income tax are withheld. This calculator shows the amount before tax.
Q. I worked a few days less than one year. Do I get severance?
With less than one year of continuous service you are usually not eligible for statutory severance. Check whether your company has its own rule.
Q. What if I have a defined contribution (DC) retirement pension?
With a DC plan you receive what your employer paid in each year plus investment returns, so the amount can differ from this calculation. Check your balance with the pension provider.