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
Online-Central Asian Cinema Week, 10-19 Sept 2020, Online screeningOnline screening of movies from Central Asian countries - English subtitles on some
KF Virtual Concert Series - Stay Joyful, Thursdays 13 Aug-15 Oct 2020Virtual concerts with International and Korean artists
At the Movies This Week - SeoulEnglish language/subtitled movies and venues in Seoul, Daejeon, Daegu, Busan. Discount tx from 1 Jun...
Advertisement
A Plus Apgugeong - 27 May 2020
Seoul Foreign School, K-12 English School, Seodaemun, Seoul
Dwight School Seoul, English Pre-School-High School, Seoul
Korea International School-KIS, PK-12 English, Pangyo, Gyeonggi-do
JZ Associate
TCIS Taejon Christian International School,1 Nov 2017
I want to convert
Directory
Helpul telephone numbers seoul korea
Cocoonfice, Business Center, Gangnam-gu, Seoul