Severance pay is money an employee receives when leaving a company after working for at least one year. It is based on the average salary of the last 3 months and calculated in proportion to the length of service.
If the continuous period of service is less than one year, there is no legal obligation to pay severance, so it is shown as 0.
This result is a pre-tax estimate. The actual amount may vary depending on company policy and taxes (retirement income tax).
Severance pay = average daily wage x 30 x (days of service / 365). The average daily wage is (salary for the last 3 months + annual bonus x 3/12 + annual leave allowance x 3/12) divided by the total number of days in those 3 months.
For example, if you worked for 3 years and your salary for the 3 months before leaving was 3 million KRW per month, the average daily wage is about 98,900 KRW and the estimated severance pay is about 8.9 million KRW.