Severance & Retirement Income Tax Calculator
Enter your hire/leave dates and recent wages to estimate your statutory severance pay and the net amount after retirement income tax.
📅 Employment Period
💵 Wages for Average-Wage Calculation
KRW
Base pay + allowances over the last 3 months (pre-tax)
KRW
Bonus over the last year (3/12 counted)
KRW
Leave allowance counted into average wage (3/12 counted)
⚖️ Ordinary Wage (optional)
KRW
If higher than average wage, ordinary wage is used instead
📊 Result
Net take-home
54,917,660원
After retirement & local income tax
Severance (pre-tax)
56,030,685원
Retirement income tax
1,011,841원
Local income tax (10%)
101,184원
Effective rate1.99%
Total days of service3,652일
Years of service (severance)10년
Years of service (tax, rounded up)10y
Applied daily wage186,667원
🧮 Retirement Income Tax Breakdown
Retirement income (pre-tax severance)56,030,685원
− Years-of-service deduction15,000,000원
Converted salary = (amount ÷ years) × 1249,236,822원
− Converted-salary deduction32,742,093원
= Tax base16,494,729원
Applied tax rate15% · Progressive deduction 1,260,000원
Converted tax = base × rate − progressive deduction1,214,209원
Assessed tax = converted tax ÷ 12 × years1,011,841원
Local income tax = assessed tax × 10%101,184원
Basis & Sources
- 📘 Severance: Employee Retirement Benefit Security Act Art. 8 (avg wage × 30 days × years)
- 📗 Average wage: Labor Standards Act Art. 2 (3-month wages ÷ total days)
- 📕 Deductions & converted salary: Income Tax Act Art. 48 (NTS retirement tax method)
- 📙 Base rates: NTS comprehensive income tax rate table (current since 2023)
※ A simplified reference calculation; tax-exempt income, interim settlement, executive caps, and IRP deferral are not reflected.
Author bal.pe.kr (operator)Reviewed by Based on NTS method & statutesLast updated bal.pe.kr Micro SaaS