Under Korea’s Labor Standards Act, an employee who has worked at least one year is generally owed severance of at least 30 days of average daily wage for each year of service. This estimator uses monthly wage ÷ 30 as daily wage, so the result is simply monthly wage × years. Real 평균임금 folds in bonuses and other wages from the last three months, so treat this as a sketch, not a legal payout.
Estimated severance15,000
Estimated daily wage (monthly ÷ 30)100
Months of wage (years)5
How this calculation works
Statutory idea: severance ≥ average daily wage × 30 × years of continuous service (근로기준법 퇴직금 제도). Partial years are usually pro-rated.
This page estimates average daily wage as monthly wage ÷ 30. Then 30 × daily × years = monthly × years. That is why ₩3,000,000 a month for 5 years shows ₩15,000,000.
Actual 평균임금 is (wages paid in the three months before the calculation reason) ÷ (calendar days in those three months). Regular bonuses and some allowances that landed in that window increase the base; unpaid leave can decrease it.
Eligibility is typically one year of continuous service. The calculator still multiplies shorter periods so you can see a pro-rata sketch — it does not decide whether you qualify.
Worked example
Monthly wage ₩3,000,000, 5 years → daily ₩100,000 → ₩100,000 × 30 × 5 = ₩15,000,000. 3.5 years at ₩4,000,000 → ₩14,000,000.
Frequently asked questions
Is this my real 퇴직금?
It is an estimate. Payroll uses 평균임금, which includes bonuses and certain allowances from the prior three months, not just base monthly pay. DC 퇴직연금 balances follow contributions, not this formula.
Do I get severance under one year?
The Labor Standards Act scheme generally requires one year of continuous service. Some workplaces still pay a pro-rata amount by contract or rules. This tool will multiply short tenures; that product is not a promise of eligibility.
Are unused vacation days included?
Unused leave conversion can affect final wages and sometimes the 평균임금 window. This estimator ignores leave cash-out. Ask HR for the official calculation sheet.
What if I have 퇴직연금 (DB/DC)?
Many employers deposit into a retirement-pension plan instead of (or in addition to) a lump-sum 퇴직금. DC is your account balance; DB is a plan formula. This page models the classic lump-sum 30-days-per-year idea only.
How should I count years?
Use continuous service in years, with months as a decimal (3 years 6 months → 3.5). Hire date to leaving date, minus unpaid gaps your rules exclude.
Does this include tax?
No. Severance income tax (퇴직소득세) is a separate, often preferential, calculation. The number here is pre-tax.