Severance Pay Calculation and Retirement Income Tax
This is a summary of Korean tax and finance rules. The full article is available in Korean.Switch to Korean (KO)
Korean statutory severance pay is calculated from average wages over the last 3 months before separation, multiplied by years of service. This guide explains the average wage formula, the ordinary wage floor, and why retirement income tax is applied separately from regular income tax.
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All calculations use 2026 official Korean government rates. Amounts are in Korean Won (KRW). Input data never leaves your browser.