🏦 Korea Statutory Severance Pay (퇴직금) & Japan Retirement Income (退職所得) Calculator

Calculate mandatory Korean Statutory Severance Pay (퇴직금 after 1+ year of service) and Japanese Retirement Income Tax (退職所得控除: ¥400k/yr up to 20 yrs, ¥700k/yr above 20 yrs, taxed on 1/2).

✅ Official Rule Verification Date: 2026-11-04 (2026/2027) 🏛️ Official Government Sources: Ministry of Employment and Labor of Korea (고용노동부) · National Tax Service of Korea (국세청)

🔒 100% Client-Side Privacy: Your salary and income inputs are calculated strictly inside your browser and never sent to any server.

📌 Korea & Japan Severance Calculator — 핵심 요약 (Key Takeaways)

In South Korea, any employee (including part-timers and foreign workers) working 15+ hours/week for 1+ year is legally entitled to at least 30 days of average wage per year of service.
In Japan, retirement lump sums subtract a generous service-year deduction (¥400k/yr for yrs 1–20; ¥700k/yr for 20+ yrs) and only half (1/2) of the remainder is taxed.
Toggle between Korea (KRW) and Japan (JPY) rules to see gross payout, deductions, and net after-tax payout.

📖 How the Formula Works & Official Terminology (with Local Terms)

Korea Formula: (Last 3 months total wages + 3/12 of annual bonus) ÷ Days in last 3 months × 30 days × (Total service days ÷ 365), minus Retirement Income Tax.
Japan Formula: (Severance Payout − Service Year Deduction) × 1/2 = Taxable Retirement Income, taxed separately from salary.

📊 Sample Salary & Tax Reference Table by Income Bracket

Years of Service	Korea Gross Severance (₩3.5M/mo)	Korea Net Payout	Japan Tax-Free Deduction (退職所得控除)
1 Year	₩3,500,000	₩3,465,000	¥800,000 (Minimum floor)
3 Years	₩10,500,000	₩10,360,000	¥1,200,000 (¥400k × 3)
5 Years	₩17,500,000	₩17,210,000	¥2,000,000 (¥400k × 5)
10 Years	₩35,000,000	₩34,150,000	¥4,000,000 (¥400k × 10)

❓ Frequently Asked Questions (FAQ)

Q. Do E-9 or E-7 foreign workers in Korea get severance pay?

Yes! All workers in Korea with 1+ year of continuous service (15+ hrs/week) are legally entitled to statutory severance pay (including Samsung/departure guarantee insurance for E-9).

Q. What form must I submit in Japan before receiving severance pay?

Submit the "Application Concerning Receipt of Retirement Income" (退職所得の受給に関する申告書) to your employer so the tax-free deduction is applied immediately instead of flat 20.42% withholding.

🏛️ Official Government Citations & Revision Schedule

Ministry of Employment and Labor of Korea (고용노동부) — Statutory Minimum Wage, Weekly Holiday Allowance & Severance Pay Formula
Official Rule Verification Date: 2026-11-04 | 최저임금 매년 8월 고시 → 이듬해 1월 1일 적용 (1월·8월 중점 점검)
National Tax Service of Korea (국세청) — Wage Withholding Table, Progressive Tax Brackets, Foreigner 19% Flat Rate & Dividend Tax
Official Rule Verification Date: 2026-11-04 | 매년 1~2월 세법 시행령 개정 및 3월 간이세액표 반영 / 5월 종합소득세 (1·2·3·5월 점검)

→ 📅 Tax Revision Calendar & Sources

⚠️ ⚠️ Important: Figures May Differ — Always Verify with Your Tax Office or Relevant Agency

Calculations, schedules, and guides on HonsMoney are approximate estimates and may differ from your actual tax or insurance amounts due to individual circumstances, municipal rules, visa status, or law revisions. This site does not provide tax or legal advice. Always verify final figures and deadlines directly with your local Tax Office (税務署 / NTS), Municipal Office (役所), Pension Service (年金事務所 / NPS), or your employer’s HR/payroll department.

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