Working and Business > Salary Deductions/Benefits

Severance Pay

Article 34 (Severance Pay System)
(1) An employer shall establish a severance pay system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a severance pay to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
(2) In establishing the severance pay system stipulated in paragraph (1), a differential severance pay system shall not be permitted within one business.
(3) An employer may, at the request of workers, pay severance pay in advance for the period of continuous employment of the worker concerned by adjusting the balances of remunerations before his retirement, irrespective of the provisions of paragraph (1). In this case, the number of years of continuous employment for the computation of severance pay shall be counted anew from the moment the latest adjustment of balances has been made.
(4) In cases where an employer has enrolled in pension insurance program for retirees or a retirement lump sum payment trust as prescribed by the Presidential Decree (hereinafter referred to as “pension insurance, etc.”) for workers, whereby workers, as the insured or a beneficiary, receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a severance pay scheme in accordance with paragraph (1). The amount of lump sum by the retirement insurance, etc., however, shall not be smaller than that of severance pay pursuant to paragraph (1).

 

Last Updated on 2020-09-01


In the same header
Health Insurance Summary Pension Obligations and Rights
Severance Pay Severance Pay Entitlement
SGVC - Korean History Lecture Series, 12 Apr-28 Jun 2021, Seocho-gu (Online possibly), SeoulKorea history as seen through foreign eyes with Pr. Henny Savenije
IGVC-Korean Language Classes, Classes from 5 April 2021 /  Online and Yongsan-gu, SeoulSome classes still have space for late registration - Does not apply to Absolute Beginner Classes.
KIS Virtual Open House - Elementary School Pangyo, 7 Apr 2021, from Pangyo, Gyeonggi-doKIS Virtual Open Houses April - Pangyo Elementary 7th, Middle School 8th, High School 9th, Elem Seou...
Advertisement
Dwight School Seoul, English Pre-School-High School, Seoul
A Plus Apgugeong - 27 May 2020
Seoul Foreign School, K-12 English School, Seodaemun, Seoul
Korea International School-KIS, PK-12 English, Pangyo, Gyeonggi-do
JZ Associate
I want to convert
Cocoonfice, Business Center, Gangnam-gu, Seoul
Directory
Helpul telephone numbers seoul korea