When you sign an employment contract, check what it says and whether your pay is at least the minimum wage. When you quit, check your severance pay. If you know these three things in advance, you can respond calmly if a wage problem comes up.
As of October 2026
① Your employment contract (근로계약서) must be given to you on paper (or as an electronic file) when you start work. It must state your monthly pay, daily working hours, days off, and paid annual leave (Labor Standards Act, Article 17). If the employer does not give it to you, the employer can be punished.
② The minimum wage (최저임금) in 2026 is 10,320 won per hour, and it applies to foreigners in the same way. If you work 8 hours a day, 5 days a week, your monthly pay must be at least 2,156,880 won.
③ Severance pay (퇴직금) is paid if you worked for 1 year or more and averaged 15 hours or more per week. It must be paid within 14 days of your last day. However, workers on an E-9 visa receive severance pay through Departure Guarantee Insurance (출국만기보험), which guarantees it. You get it in cash at the airport when you leave Korea, or in your bank account within 14 days after the day you leave. If the insurance payout is less than legal severance pay, the employer must pay the difference.
④ If you were not paid, collect evidence and file a labor complaint (진정) (a petition asking the Ministry to investigate) on the Labor Portal (노동포털). Your right to claim unpaid wages and severance pay expires after 3 years.
This guide uses many Korean labor terms. They are hard at first, so we put them all in one table. If you meet a word you don't know while reading, come back here.
| Term | Plain explanation |
|---|---|
| Employment contract (근로계약서) | A document where the employer and the worker write down their promise: "If you do this job, the pay is this much, and you work this many hours a day" |
| Contractual working hours (소정근로시간) | The working hours written in the contract as "you agreed to work this many hours". It is the hours you promised, not the hours you actually worked |
| Minimum wage (최저임금) | The lowest hourly wage set by law. Even if you sign a contract for less, that promise is void |
| Weekly holiday pay (주휴수당) | Money added to your pay for your weekly paid day off (주휴일), as if you had worked that day, when you worked the whole week without missing a day |
| Pay statement (payslip) (임금명세서) | A list showing how this month's pay was calculated, item by item. The employer must give it to you when paying your wages |
| Average wage (평균임금) | The daily wage used to calculate severance pay. You get it by dividing the money you received in the 3 months before you quit by the number of days in those 3 months |
| Severance pay (퇴직금) | Money the employer pays when you quit after working 1 year or more. The basic amount is 30 days of average wage for each year |
| Employment Permit System (EPS), E-9 visa (고용허가제, E-9) | A government system. Under it, foreigners work in manufacturing, farming and livestock, fishing, construction, and similar fields on a visa (non-professional employment, E-9) |
| Departure Guarantee Insurance (출국만기보험) | Insurance that guarantees severance pay for E-9 workers. The employer pays premiums every month and saves up the money, and you receive it after you leave Korea. If the payout is less than severance pay, the employer must pay the difference |
| Unpaid wages (임금체불) | When the employer does not pay your wages or severance pay by the due date |
| Labor complaint (진정) | A request to the Ministry of Employment and Labor (고용노동부) saying "The employer broke the law, please investigate" |
The employment contract must be written when you start work, and after it is signed, the employer must give you your own copy. If only the employer has it, you have no way to prove the promise later. Take a photo of it and keep it on your own phone.
The law (Labor Standards Act, Article 17, and the Act on the Protection of Fixed-term and Part-time Workers, Article 17) says these items must be stated in writing (on paper or in an electronic document). If any are missing, ask the employer to add them before you sign.
| Item | What to check |
|---|---|
| Wages | Whether it is a monthly salary or an hourly wage, the amount, which allowances are included (basic pay, night pay, etc.), how it is calculated, the payday, and how you are paid (bank transfer, etc.). If money is deducted from your pay, such as for a dormitory or meals, the amount and the calculation method must also be written |
| Contract period | If the contract is for a fixed period, when it starts and ends (the start date and the end date). Also check whether it renews automatically |
| Contractual working hours | How many hours a day, the start and end times, and break times |
| Days off | Which day of the week is your weekly paid day off, and whether you get public holidays off |
| Paid annual leave | Whether there is leave where you are still paid when you rest, and how many days |
| Workplace and job duties | Where you work and what work you do (if the contract and the real work are different, that is a problem) |
Rules for paying wages
The law sets how wages must be paid. The employer must pay at least once a month, on a fixed date, in cash (currency), directly to you, and in full. When paying wages, the employer must also give you a pay statement.
E-9 (non-professional employment) workers use the government-issued standard employment contract (표준근로계약서), and sign the contract before coming to work. If you are told to sign a new contract after arriving in Korea, compare it with the original contract. If your pay or working hours changed against you, get advice before you sign (Section 6).
Even if you never signed a contract, if you actually worked, your right to wages and severance pay stays the same. But it is hard to prove how much you were promised, so collect the items below.
① Bank statements showing your pay coming in
② Attendance records (photos, notes)
③ Messenger chats where you were given work instructions
④ Contact details of people who worked with you
The 2026 minimum wage is 10,320 won per hour, and it has applied since January 1, 2026. It applies to foreigners in the same way, whatever the industry or visa. Even if you signed a contract for less than the minimum wage, that part is void, and you must be paid at least the minimum wage.
| Basis | 2026 minimum wage |
|---|---|
| Hourly | 10,320 won |
| Daily (8 hours a day) | 82,560 won |
| Monthly (40 hours a week, based on 209 hours a month) | 2,156,880 won |
Calculate whether the monthly pay in your contract is at least the minimum wage. Divide your monthly pay (before tax, the total of the pay that counts toward the minimum wage) by 209 to get your hourly wage.
Why divide by 209? Your monthly pay does not cover only the days you worked. The law gives you one day off a week, and it says you must be paid for that day off as if you had worked. The money for this day off is called weekly holiday pay. So your monthly pay already includes pay for days off, and to find your hourly wage you must divide by the working hours plus the hours counted for the day off.
For someone who works 40 hours a week, the calculation is 40 working hours + 8 hours for the day off = 48 hours a week. A month is about 4.35 weeks, so 48 hours × 4.35 weeks = about 209 hours. The number 209 applies to a 40-hour work week (including 8 paid weekly holiday hours). If your working hours are different, the number you divide by is different too.
Example: If your monthly pay is 2,100,000 won, then 2,100,000 ÷ 209 = about 10,048 won. This is less than the minimum wage of 10,320 won, so it is below the minimum wage.
Do monthly-paid workers also get weekly holiday pay? If you are paid monthly, weekly holiday pay is usually already included in your monthly pay. Still, be sure to check that your contract and pay statement say whether weekly holiday pay is included and how it was calculated. On the other hand, with hourly pay, only the hours you worked are counted, so the pay for the day off must be added separately as weekly holiday pay. The hourly calculation is explained below.
The money compared with the minimum wage is "the total of the pay that counts toward the minimum wage (before tax)". It includes the basic pay and allowances you receive every month, meal and transport money paid in cash, and regular bonuses (in full since 2024). It does not include premium pay (가산수당) (extra pay) for overtime, night work, and holiday work, annual leave pay you receive for leave you did not use, or non-cash benefits (such as meals or housing provided). So your total monthly pay may look high, but once you take out the money that does not count, it may fall short of the minimum wage. Check each item on your pay statement.
If you are paid hourly, you should also get weekly holiday pay. If you meet both conditions below, you get one extra day of pay for your day off.
① The working hours set in your contract are 15 hours or more per week on a 4-week average
② You attended every day you were supposed to work that week (being late or leaving early is not counted as an absence)
Example: With an hourly wage of 10,320 won, working 8 hours a day, 5 days a week, you get (40 hours + 8 holiday hours) × 10,320 won = 495,360 won per week. For monthly-paid workers, weekly holiday pay is already included in the monthly pay, as explained above.
You receive severance pay if you meet both conditions below.
① You worked 1 year or more continuously at the same workplace
② The working hours set in your contract are 15 hours or more per week on a 4-week average
If you quit before completing 1 year, there is no severance pay. On the other hand, there are court cases where the work periods were added together and counted as 1 year when a contract ended and then started again right away, or when short contracts were repeated back to back.
Severance pay is calculated like this.
① Add up all the money you received in the 3 months before you quit (pay, allowances, etc.).
② Divide that money by the total number of days in those 3 months (usually 90 to 92 days). This gives your daily wage (average wage).
③ Work out the daily ordinary wage (your regular fixed wage) for the same period too. If the average wage is lower than the ordinary wage, the ordinary wage is used. Whichever is larger is your daily wage.
④ Multiply the daily wage by 30. This is severance pay for 1 year.
⑤ Then multiply by the period you worked. The period is counted not in whole years but by the calendar days of your continuous employment. As a formula, it is daily wage × 30 × (days worked ÷ 365). So if you worked 2 years and 3 months, it is about 2.25 times, and if you worked 3 years and 6 months, it is 3.5 times.
Example: If your pay was 2.5 million won a month (fixed pay) and the 3 months before you quit had 92 days, you calculate it like this.
· Average wage: 7,500,000 ÷ 92 = about 81,522 won
· Ordinary wage (per day): 2,500,000 ÷ 209 × 8 hours = about 95,694 won
The ordinary wage is larger, so it is used. 95,694 won × 30 days = 1 year of severance pay is about 2.87 million won.
· If you worked 2 years, about 5.74 million won
· If you worked 3 years and 6 months, about 10.05 million won (2.87 million won × 3.5)
The average wage is calculated by looking only at the 3 months right before you quit. If your pay went up while you worked, the pay after the raise is used.
If you have bonuses or annual leave pay, the calculation may change. In that case, use the severance pay calculator on the Ministry of Employment and Labor website, or get advice.
By when must it be paid? It must be paid within 14 days of your last day. Both sides can agree to delay it. If it is late, you can, in principle, receive late-payment interest of 20% per year starting from the day after the 14 days end. This can differ if there is a reason set by law, such as a natural disaster or a bankruptcy declaration. Your right to severance pay expires after 3 years.
The basic severance pay set by law is 30 days of average wage for each year. But how you receive it depends on your visa.
| Visa | How you receive severance pay |
|---|---|
| E-9 (non-professional employment) | Departure Guarantee Insurance, which guarantees severance pay. The employer enrolls you and pays the premiums. You receive it after you leave Korea (explained below) |
| E-2 (foreign language instructor), E-7 (specially designated activities), F-4, F-2, F-5, F-6, etc. | Regular severance pay, the same as other workers. If you worked 1 year or more, you receive it within 14 days of your last day |
The 4 kinds of insurance for E-9 workers
E-9 workers have the insurance below. The names are similar, so it is easy to get confused.
| Insurance | Who enrolls | What it is for |
|---|---|---|
| Departure Guarantee Insurance | Employer (the employer pays 8.3% of your monthly ordinary wage) | Money that guarantees severance pay (the employer pays the difference if it falls short). You get it in cash at the airport on the day you leave, or in your bank account within 14 days after you leave |
| Wage Arrears Guarantee Insurance | Employer (only for covered workplaces; the premium depends on the coverage period) | Insurance that pays up to 4 million won if your wages are delayed. It is not a substitute for severance pay |
| Return Cost Insurance | The worker (mandatory) | Insurance that pays a fixed amount (400,000 to 600,000 won depending on nationality) to use for travel costs home. It does not cover the whole price of the plane ticket. It is not severance pay either |
| Injury Insurance (non-work) | The worker (mandatory) | Insurance that pays if you die or are left with a disability for reasons other than work. It does not pay hospital bills. It is not severance pay either |
What are Return Cost Insurance and Injury Insurance?
① Return Cost Insurance (귀국비용보험)
E-9 (and H-2) workers must enroll. You must enroll within 3 months of the day your employment contract takes effect. If you do not enroll, there is a fine of 800,000 to 3.2 million won.
The premium depends on your nationality. For Vietnam, Thailand, China, the Philippines, and Indonesia, it is 400,000 won. For other countries, including Nepal, it is 500,000 won. For Sri Lanka, it is 600,000 won. You open a bank account at the job training institution and pay by automatic transfer within the set deadline. You can pay all at once (lump sum) or in 3 installments (40%, 30%, 30%. Example: for 400,000 won, 160,000 won → 120,000 won → 120,000 won).
When you leave Korea, you receive a fixed amount. The amount you receive is about the same as the premium you paid (400,000 to 600,000 won depending on nationality), so it is closer to getting back money you set aside in advance for travel home than to real insurance. It increases a little depending on how long you were enrolled (up to 108.3%). Because it pays a fixed amount and not the real price of the ticket, it is not insurance that covers the whole plane fare. It is paid when you leave after your stay period ends, or when you leave early for personal reasons. If you do not claim it within 3 years, your right to it passes to the Human Resources Development Service of Korea (한국산업인력공단). You can still apply to the Service for payment (dormant insurance money). Ask the Service how to apply.
② Injury Insurance (상해보험)
Workers also must enroll in this. It is not a policy that individuals choose at a regular insurance company. It is Samsung Fire & Marine Insurance's special insurance for foreign workers. You must enroll within 15 days. If you do not enroll, there is a fine of up to 5 million won. If you first entered Korea on an E-9, count from the day you entered. If you are on H-2 or changed workplaces, count from the day your employment contract started.
This insurance is not for injuries while working (Industrial Accident Insurance). It pays if you die or are left with a disability for reasons other than work. It pays 30 million won for death by injury, up to 30 million won for disability, and 15 million won for death by illness or for a permanent disability from illness (80% or more). The premium is not paid monthly but in one lump sum. The insurance period is the length of your employment contract (up to 3 years), and you pay the premium for the whole period at once. The worker pays it. The amount depends on age, sex, and insurance period. The example in the Work24 guide is about 19,400 won for 3 years for a 25-year-old man. Other guides give different example amounts, so check the actual amount with Samsung Fire & Marine when you enroll. You cannot receive this and Industrial Accident Insurance for the same event.
We could not confirm the detailed enrollment steps. Ask the Samsung Fire & Marine special insurance line for foreign workers (1600-0266) or the Foreign Workforce Counseling Center (1577-0071).
This is how you apply for and receive Departure Guarantee Insurance.
① Report your departure plan to the Employment Center (고용센터) at least 1 month before your planned departure date.
② At least 7 days before your planned departure date, apply for the insurance payout to the insurance company named in the official Employment Permit System guide (Samsung Fire & Marine special insurance for foreign workers). Fax the insurance claim form and consent form, a copy of your passport, and the confirmation of planned departure. The counseling line is 1600-0266.
③ Choose how to receive it. The timing depends on the method.
· Cash at the airport: You receive it on the day you leave, at Incheon Airport or Gimhae Airport. We could not confirm whether it can also be received at other airports. If you leave from another airport, use the bank account method below, or ask Samsung Fire & Marine (1600-0266) first.
· To a Korean bank account: It is deposited within 14 days of the day you leave.
· To a bank account in your home country: It is deposited within 14 days of the day you leave.
If you applied after leaving, you receive it within 14 days of the day you applied. If you receive it for a reason other than leaving Korea, such as a change of visa status or death, it is also paid within 14 days of the day you applied, but there are separate requirements, so check with Samsung Fire & Marine (1600-0266).
④ The insurance builds up based on your ordinary wage (8.3%), while legal severance pay is based on your average wage. So the amounts can be different, and if the insurance payout is less than the severance pay, the employer must pay the difference directly.
⑤ Your right to the insurance payout expires after 3 years from the day the reason for payment arose. After that you can no longer claim from the insurance company, and the money passes to the Human Resources Development Service of Korea. You can still apply to the Service for payment (dormant insurance money). Ask the Service how to apply.
If you are an E-2 (foreign language instructor) worker
Even if you signed a "freelancer contract" with a private academy (hagwon), if the academy gave you orders and supervised your work, you are often recognized as a worker based on how you actually worked, not the name on the contract. If you are recognized as a worker, you can receive severance pay and weekly holiday pay. Annual leave pay applies only if the workplace meets the conditions for annual leave, such as having 5 or more workers.
A promise in advance not to receive severance pay goes against the law, so it has no effect. An explanation that "severance pay is included in the hourly wage" is often not accepted as it is either, so if you hear this, get advice before you sign.
Steps to take
Collect your employment contract, bank statements showing your pay, pay statements, attendance records (photos, notes), and messenger chats where you were given work instructions. Even without a contract, these can prove the period you worked and the pay you were promised.
Send a message by messenger or text saying "I have not yet received my pay (or severance pay) for this month. Please pay by this date", with the date and amount. This record becomes evidence later. If you only ask by voice, it is hard to prove.
You can file a labor complaint online on the Ministry of Employment and Labor's Labor Portal (labor.moel.go.kr). You can also go in person to a nearby Ministry office to apply. A labor complaint is a request saying "The employer broke the law, please investigate".
If it is hard to do alone, call the Ministry of Employment and Labor Counseling Center (1350), the Foreign Workforce Counseling Center (1577-0071), or the Korea Legal Aid Corporation (132). The contact details are in Section 6.
If the labor complaint does not solve it, you can file a civil lawsuit in court to get paid. First check whether you can get free advice and support from the Korea Legal Aid Corporation.
If you are an E-9 worker, and the employer enrolled in Wage Arrears Guarantee Insurance, you can receive up to 4 million won from this insurance when your wages are delayed. Ask the Foreign Workforce Counseling Center (1577-0071) whether the employer is enrolled.
| Contact | What you can ask |
|---|---|
| Ministry of Employment and Labor Counseling Center 1350 | Labor problems in general, such as unpaid wages, severance pay, and employment contracts (check which foreign languages are supported before you use it) |
| Foreign Workforce Counseling Center 1577-0071 | Counseling for non-professional employment (E-9) workers (many languages supported) |
| Immigration Contact Center 1345 | Visa and stay problems |
| Korea Legal Aid Corporation 132 | Free legal advice, support for unpaid wage lawsuits |
| Ministry of Employment and Labor Labor Portal | File an unpaid wages complaint online (labor.moel.go.kr) |
Some foreign worker support centers closed after their budgets were cut in 2024, so whether one is open depends on the region. Be sure to call and check before you go.
① Before you sign, check that the employment contract states your pay, working hours, days off, and annual leave, and be sure to get your own copy after signing.
② When you sign the contract, divide your monthly pay (before tax, the total of the pay that counts toward the minimum wage) by 209 (based on a 40-hour work week) and check that your hourly wage is at least 10,320 won.
③ If you quit after working 1 year or more, you receive severance pay within 14 days. If you are on E-9, you receive it through Departure Guarantee Insurance, which guarantees severance pay, when you leave Korea.
④ If you were not paid, collect evidence, and before 3 years pass, use a Labor Portal complaint or the counseling contacts in Section 6.
| Question | Answer |
|---|---|
| I worked without a contract. Can I still get my pay and severance pay? | Yes. If you actually worked, your rights stay the same. But you must prove how much you were promised, so collect bank statements, attendance records, and messenger chats. |
| My contract period is shorter than 1 year. Is there severance pay? | If you did not work 1 year or more, there is no severance pay. But there are court cases where short contracts repeated back to back with no gap were added together and counted as 1 year, so get advice if you worked continuously. |
| They say "severance pay is included in your monthly pay". Is that right? | An explanation that severance pay is included in the hourly or monthly pay is often not accepted as it is. A promise in advance not to receive severance pay also has no effect. If you hear this kind of explanation, get advice before you sign. |
| I am on E-9. How do I receive severance pay? | You do not receive it in Korea. You receive it through Departure Guarantee Insurance. You get it in cash at the airport on the day you leave, or in your bank account within 14 days after the day you leave. If the amount is less than legal severance pay, the employer must pay the difference. |
| If I work fewer than 15 hours a week, is there severance pay? | If you work less than 15 hours a week on a 4-week average, you are not covered by severance pay. But if the contract says less than 15 hours and you actually worked more, get advice. |
| I quit a long time ago. Can I still get paid now? | Your right to wages and severance pay expires after 3 years, and after 3 years you can no longer claim the E-9 Departure Guarantee Insurance payout from the insurance company. In that case the money passes to the Human Resources Development Service of Korea, and you can apply to the Service for payment (ask the Service how to apply). |
This guide is for general information only, and amounts and standards may change when laws are amended. For your exact situation, check directly with the Ministry of Employment and Labor or the counseling contacts above.