Free Severance Pay Calculator
Calculate severance pay under Korean Labor Standards Act. Enter your employment dates and recent 3-month salary to get severance amount, retirement income tax, local tax, and net payout.
📌 Employment Period
💵 Salary Information
Pre-tax base salary + fixed allowances (3-month total)
Optional (default 0)
Optional (default 0)
📊 Calculation Results
Length of Service
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Daily Average Wage
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Severance Pay (Gross)
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Retirement Income Tax
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Local Income Tax
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Net Payout (After Tax)
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View Calculation Details
Enter start and end dates to see the detailed calculation breakdown.
Disclaimer: This is a simplified calculation based on Korean Labor Standards Act. Actual retirement income tax may vary depending on deduction methods. Consult a tax professional for exact figures.
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Under Korean labor law, employees who have worked for one year or more are entitled to severance pay upon leaving their job. This calculator automatically computes severance pay based on average daily wages, retirement income tax, local tax, and net payout.
Key Features
Average Wage-Based Severance Calculation
Enter your employment start and end dates, and the calculator automatically determines your total service days. It then factors in your 3-month salary, bonuses, and annual leave allowance to derive the daily average wage. Severance = daily average wage x 30 x (service days / 365).
Retirement Income Tax Calculation
Automatically computes service year deductions, converted salary, and graduated tax using 2026 Korean tax brackets. See your net payout at a glance.
Transparent Calculation Breakdown
Every step of the calculation is shown in an expandable details section, so you can verify the numbers and compare them with your employer's calculation.
How to Use
Step 1: Enter Employment Dates
Select your start date and resignation date. Note that employees with less than 1 year of service are not eligible for statutory severance pay.
Step 2: Enter Salary Information
Enter the total pre-tax salary for the last 3 months before resignation. Add annual bonus and leave allowance if applicable.
Step 3: Review Results
Severance pay, retirement income tax, local tax, and net payout are calculated instantly. Open "View Calculation Details" to see the full breakdown.
Tips
What to Include in 3-Month Salary
Include base salary, position allowances, meal stipends, and other regularly paid items. Exclude reimbursement-type payments (actual travel expenses, etc.).
Bonus Inclusion
If your employment contract or company rules specify regular bonuses, enter the annual total. The calculator automatically converts it to the 3-month equivalent.
DC-Type Retirement Pension
If you are enrolled in a Defined Contribution (DC) retirement pension plan, separate severance pay does not apply. This calculator is for DB-type pension or statutory severance pay.
FAQ
When should severance pay be paid?
Under the Korean Labor Standards Act, severance must be paid within 14 days of the resignation date. Extensions are possible with mutual agreement.
Can I get severance if I worked less than 1 year?
No, statutory severance pay in Korea requires at least 1 year of continuous service.
Can I use this on mobile?
Yes, it is fully responsive and works on smartphone and tablet browsers.