How to Calculate Severance Pay in Korea — Do Foreigners and Part-Timers Get It After 1 Year?

As of 2026-10-04

If you worked continuously at one workplace for 1 year or more, averaging 15 or more hours a week, you are entitled to severance pay (퇴직금). The amount is 30 days of average wages for each year worked, and it must be paid within 14 days after you leave. It applies equally to foreigners, part-timers, and workplaces with fewer than 5 employees.

Who is eligible

Continuous employment at the same workplace of 1 year or more
Contracted working hours averaging 15 or more per week over 4 weeks
Regardless of nationality, visa status, or workplace size (including fewer than 5 employees)

How to calculate it

Severance pay = average daily wage × 30 days × (days employed ÷ 365).

The average daily wage is the total wages you received in the 3 months before leaving, divided by the number of days in those 3 months. Overtime and night pay and regular bonuses are included.

Example: if you worked 2 years on the 2026 minimum monthly wage (2,156,880 KRW), your severance pay is about 4,313,760 KRW.

Departure guarantee insurance for Employment Permit System (E-9, H-2) workers

For E-9 and H-2 workers, severance pay is funded through departure guarantee insurance (출국만기보험), which the employer pays into every month. You apply for the insurance payout when you leave Korea and receive it after departure.

If the insurance payout is less than the legal severance pay, the employer must pay the difference directly.

If you did not receive severance pay

Severance pay must be paid within 14 days after you leave (this can be extended if both parties agree).
A clause saying severance pay was split into your monthly salary is in principle invalid, so you can still claim severance pay.
Consult the Ministry of Employment and Labor at 1350 or file a complaint with the labor office (노동청). The deadline to claim is 3 years after you leave.

Frequently asked questions

If I only worked 11 months, do I get no severance pay?

Correct. If your continuous employment is less than 1 year, no legal severance pay arises. The right arises once you pass 1 year.

Do part-timers get severance pay?

Yes, part-timers also get it if they worked 1 year or more, averaging 15 or more hours a week.

I signed a contract saying I give up severance pay.

An agreement made while employed to give up severance pay in advance has no legal effect. You can claim it after you leave.

This article is general information, not legal advice. For your specific case, consult the Ministry of Employment and Labor (1350) or a lawyer.