Severance Pay Calculator
Severance pay is at least 30 days of average wages for each 1 year of continuous service. This tool calculates the pre-tax amount with the formula published by the Ministry of Employment and Labor. The same law applies regardless of nationality.
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How it is calculated
- Daily average wage = (total wages in the 3 months before retirement + bonuses × 3/12 + annual-leave allowance × 3/12) ÷ total days in those 3 months
- Severance pay = daily average wage × 30 days × (days employed ÷ 365)
- If the daily ordinary wage is higher than the daily average wage, the daily ordinary wage is used.
Good to know
- Severance pay must be paid within 14 days of retirement. It can be extended by agreement of the parties if there are special circumstances.
- In principle, severance pay is paid by transferring it to an individual retirement pension (IRP) account designated by the worker.
- Retirement income tax is not included in this calculation. Check the retirement income tax guide on Hometax.
- A take-home pay (after-tax salary) calculator is not provided because there is no single official formula source.
Frequently Asked Questions
Can foreign workers also get severance pay?
The same law applies regardless of nationality. If your continuous service is at least 1 year and your contractual working hours average at least 15 hours per week over 4 weeks, you are covered.
By when must severance pay be paid?
It must be paid within 14 days of the day you leave. If there are special circumstances, the parties may agree to extend the date.
What if I have not received my severance pay?
You can contact the Ministry of Employment and Labor (dial 1350, no area code). The wage arrears guide below explains how to file a complaint.