Korean Annual Leave Law 2026: Article 60 Guide (LSA Complete)

Under Korean Labor Standards Act (LSA) Article 60, employees are entitled to 15 days of paid annual leave after one year of service with 80%+ attendance, plus additional days based on seniority up to 25 days. This 2026 guide covers the full accrual formula, unused leave payout calculation, menstrual leave (Article 73), and specific rules for foreign workers in South Korea.

1. What Is Annual Paid Leave?

Under Article 60 of the Labor Standards Act, any employee who has worked for at least one year with an attendance rate of 80% or more is entitled to 15 days of paid leave. This applies to all workplaces with five or more employees. The employee has the right to choose when to use their leave, though the employer may request a change of timing if it causes serious disruption to business operations.

Two conditions must be met:

• Continuous service: at least 1 year at the same workplace
• Attendance rate: 80% or more of scheduled working days

2. Accrual Rules in Detail

First Year — 1 Day Per Month

Since the 2017 amendment, employees who have not yet completed one full year are entitled to 1 day of paid leave for each month of perfect attendance. This means a new hire can accumulate up to 11 days during their first year.

After 1 Year — 15 Days

Once an employee completes one year with 80%+ attendance, they receive 15 days. However, any monthly leave days used during the first year are deducted from this total. For example, if an employee used all 11 first-year days, they receive only 4 additional days (15 − 11 = 4) in year two.

After 3 Years — Additional Days

Starting from the third year of continuous service, employees earn 1 extra day for every 2 additional years, up to a maximum of 25 days.

3. Annual Leave Accrual Table

Years of Service	Leave Days
Less than 1 year	Up to 11 days (1/month)
1 year	15 days
3 years	16 days
5 years	17 days
7 years	18 days
9 years	19 days
11 years	20 days
13 years	21 days
15 years	22 days
17 years	23 days
19 years	24 days
21+ years	25 days (cap)

4. Fiscal-Year Basis vs Hire-Date Basis

By default, annual leave is calculated based on the hire date. However, many Korean companies adopt a fiscal-year basis (January 1 to December 31) for administrative convenience.

When converting to fiscal-year basis, leave must be prorated. For example, an employee hired on July 1 would receive 15 × (6/12) = 7.5 days, rounded up to 8 days, for the remainder of that fiscal year.

The critical rule is that the fiscal-year system must not disadvantage the employee compared to the hire-date system. If it results in fewer leave days, the employer must grant additional days to make up the difference.

5. Leave Use Promotion System

Article 61 of the LSA allows employers to implement a leave use promotion procedure to encourage employees to use their annual leave before it expires:

1. First notice (6 months before expiry): The employer informs the employee in writing of their remaining leave balance and requests them to designate usage dates.
2. Second notice (2 months before expiry): If the employee fails to designate dates, the employer may assign specific dates in writing.

If this procedure is properly followed, the employer is exempt from paying unused leave compensation, even if the employee does not use the leave. This makes it critical for companies to document each step carefully.

6. Unused Leave Compensation

If the promotion procedure was not followed, the employer must compensate unused leave at the employee’s ordinary wage rate.

Formula:

Unused Leave Pay = Daily Ordinary Wage × Number of Unused Days
Daily Ordinary Wage = Monthly Ordinary Wage ÷ Monthly Prescribed Hours × 8 hours

Example: Monthly ordinary wage of KRW 3,000,000, 5 unused days

• Daily wage = 3,000,000 ÷ 209 hours × 8 = approximately KRW 114,833
• Unused leave pay = 114,833 × 5 = KRW 574,163

7. Annual Leave and Resignation

When an employee resigns, unused leave must be settled:

• Previously accrued unused leave: Must be compensated regardless of whether the promotion procedure was followed. Resignation effectively bypasses the promotion exemption.
• Current-year leave: Leave accrued during the year of resignation is prorated up to the last working day, and any unused portion must also be compensated.
• Impact on severance pay: Unused leave pay can be included in the average wage calculation used for severance pay, potentially increasing the total payout.

8. Annual Leave Rules for Foreign Workers

Foreign employees working in South Korea under E-7, E-9, D-8, or other work visas are fully entitled to annual leave under Article 60 — labor rights do not differ by nationality or visa type. However, a few practical differences apply:

• Probation periods: E-9 (non-professional employment) workers often have longer probation under the Employment Permit System, but Article 60 still applies from day one.
• Contract completion bonus: For E-9 workers completing 3+ year contracts, unused annual leave compensation is paid out alongside the return bonus.
• Language of notice: Article 61 leave-use promotion notices must be delivered in writing. Courts have ruled that notices in a language the employee cannot understand may not satisfy the legal requirement, exposing the employer to unused leave compensation claims.
• Tax treatment: Unused leave compensation is taxable wage income for both residents and non-residents, subject to withholding under Korean income tax law.

9. Menstrual Leave (Article 73)

Separate from annual leave, Article 73 of the Labor Standards Act grants female employees the right to one day of menstrual leave per month upon request. Key points:

• Unpaid by default: Unlike annual leave, menstrual leave is unpaid under the 2003 amendment, unless the company’s internal rules or collective agreement provide otherwise.
• No compensation for unused days: Because menstrual leave is a monthly entitlement (not accrued), unused days do not accumulate and are not compensated upon resignation.
• No medical proof required: Employers cannot demand medical certificates or specific reasons.
• Refusal is a criminal offense: Under Article 114, an employer who refuses a valid menstrual leave request can face up to KRW 5 million in fines.

Common misconception: Some foreign workers assume unused menstrual leave should be paid out like annual leave. This is incorrect — the two systems operate under entirely different articles of the LSA.

10. Practical Tips for Leave Management

• Share leave balances monthly: Employees should always know how many days they have remaining.
• Set calendar reminders for promotion deadlines: Missing the 6-month or 2-month window means you owe compensation for unused days.
• Document fiscal-year conversions: Keep records of proration calculations in case of disputes.
• Consider half-day leave policies: While not legally required, allowing half-day leave improves employee satisfaction significantly.
• Use digital tools: Manual tracking in spreadsheets is error-prone. Automated calculators reduce mistakes and save time.

11. Online Tools

Simplify your annual leave calculations and tracking with these tools:

• Annual Leave Calculator — Enter your hire date and used days to instantly calculate remaining leave.
• Leave Management Dashboard — Track leave balances across your entire team in one place.
• Annual Leave Template — A browser-based template for quick annual leave computation.

12. Frequently Asked Questions

Q. Does annual leave accrue during a probation period?

Yes. Probation is still part of the employment period. As long as the employee has perfect attendance for the month, they earn 1 day of leave per month — just like any other new hire.

Q. Is parental leave counted as attendance?

Yes. Under Article 60(6) of the LSA, periods of parental leave are deemed as days attended. This means parental leave will not reduce the attendance rate below 80%, ensuring annual leave accrual is unaffected.

Q. Can an employer refuse half-day leave requests?

Legally, annual leave is granted in full-day units. There is no statutory obligation to allow half-day leave. However, if the company’s internal rules or collective agreement include a half-day leave provision, the employer must honor it.

Q. Can I use remaining leave before my last day?

Yes. Employees may use their remaining annual leave before resignation. While employers technically have the right to request a schedule change, this right is practically unenforceable when the resignation date is fixed. Any leave that cannot be used must be compensated as unused leave pay.