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Korean Labor Law

Severance Pay and Minimum Wage: Part 3 of Our Labor Law Series

Ate Ela explains severance pay rules and minimum wage protections for workers in Korea.


 For this part of our series, let's talk about two things that touch almost every worker here: what you're owed when you leave a job, and the wage floor that protects all of us no matter what kind of work we do.

Retirement Benefits and Severance Pay

When an employee retires or resigns, the employer is required to pay a sum equal to 30 days or more of average wages for every year of consecutive service, and this payment must be made within 14 days.

There's also a provision that allows an employee to request interim severance payments in advance, before their employment actually ends, for the years of service they've already completed. If this happens, only the years of service after that interim payment are counted when calculating any future severance payment. This can be helpful to know if you're ever in a situation where you need access to funds you've already earned through years of service, without having to leave your job entirely.

The Minimum Wage Act

Every employer is required to pay wages that are not less than the minimum wage. This applies across the board, and violations can carry serious penalties, including imprisonment or a heavy fine.

There are only limited situations where the minimum wage can legally be lowered — for a worker still within the first three months of a probationary period, or for someone engaged in surveillance or intermittent work whose employer has obtained approval from the Ministry of Labor. Outside of those specific cases, every worker is entitled to the full minimum wage.

Employers are also required to inform workers of the minimum wage by displaying it somewhere easily visible in the workplace, or through some other appropriate means. This includes making clear what counts toward the minimum wage calculation, what doesn't, which categories of workers are excluded from certain provisions, and the date the current minimum wage takes effect.

Why This Matters

I always tell our kababayan: the minimum wage isn't a favor from your employer, it's a legal floor. If you're ever unsure whether what you're being paid meets that standard, or if you're owed severance pay that hasn't been given to you, these are things worth asking about — and worth reaching out to Pinoy Sarang about if you need guidance.

Next article: we move into the Equal Employment and Work-Home Balance Assistance Act — hiring discrimination, childcare leave, and the protections in place for working parents.


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About the Author



English Instructor in South Korea | 22 Years of Teaching Experience

Majella Pagayon is the founder of Pinoy Sarang, a community platform dedicated to helping Filipinos navigate life, work, education, and immigration in South Korea. She regularly writes practical guides, safety tips, and educational resources for Filipinos living and working abroad.

I am Majella, an English Instructor with nearly 22 years of teaching experience in South Korea. Based in Chungju, I am the founder of Pinoy Sarang and Hiraya Filipina Korea. My mission is to bridge the gap between traditional teaching and the digital business world, helping others find their path to success.