Retirement Pay System: Who Qualifies and What You Get
Learn if you are eligible for retirement pay in South Korea and how much you should receive after your employment ends.
The Retirement Pay System is a mandatory benefit that provides employees with a lump-sum payment after they leave their job.
Who it's for
You qualify for this benefit if you have worked for the same employer for more than one year and your working hours average at least 15 hours per week.
What you get
When you retire or leave your position, you are entitled to receive an amount equal to one month of your salary for every full year you worked at the company.
What it costs you
There is no cost to you for this benefit. The payment is the financial responsibility of your employer.
The catch to know
Some employers may try to avoid paying this by offering contracts that last only 11 months. To qualify, you must have completed a full year of service.
How to apply
- Confirm that you have worked for your employer for over a year.
- Verify that your weekly working hours meet the minimum requirement.
- Contact your employer to request your final payout upon leaving your job.
- Contact the Ministry of Employment and Labor if your employer refuses to pay.