Annual Leave Allowance Calculator
Enter monthly ordinary wage and unused leave days to compute the statutory unused-annual-leave allowance under Korean labor law.
Base salary plus regular fixed allowances. Performance bonuses and most non-taxable allowances are usually excluded.
Days of annual leave still unused at fiscal year end or separation.
Estimated allowance
574,160KRW
Daily ordinary wage: 114,832 KRW × 5 days
- Hourly ordinary wage
- 14,354KRW/ 209h
- Daily ordinary wage
- 114,832KRW× 8h
- Unused days
- 5 days
- Calculated for 5 unused days
What is the unused-annual-leave allowance?
Annual leave allowance refers to the additional wage payable for annual leave that was not used within the fiscal year or by the time of retirement. Under Article 60 of the Labor Standards Act, workers with 80% or more attendance over a year accrue 15 days of paid annual leave, with one additional day every two years starting in the third year, capped at 25 days. The amount is calculated as: unused leave days × ordinary daily wage. The ordinary daily wage differs depending on whether the worker is hourly, daily, or monthly paid; for monthly-paid workers it is typically calculated as 'monthly ordinary wage ÷ 209 hours × 8 hours'. The 209 hours is the standard monthly working hours derived from a 40-hour week + 8 weekly paid hours, multiplied by the average 4.345 weeks per month. Importantly, annual leave allowance is calculated on ordinary wage, not on average wage. Ordinary wage covers regular, uniform, and fixed payments (base salary + regular allowances) and excludes performance bonuses or one-off payments. This calculator targets workplaces with five or more regular employees. When the employer correctly follows the leave-use promotion procedure, the obligation to pay allowance for unused leave can be exempted. Verify with HR or the Ministry of Employment and Labor.
When is this calculator useful?
Settling unused leave on retirement
If any annual leave remains at retirement, the employer must pay it in cash. Use this calculator to check the settlement amount in advance.
End-of-year settlement
For workplaces running on the calendar year (Jan 1 – Dec 31), unused leave at year end triggers an allowance. Check the expected amount before year-end settlement.
When leave-use promotion was not properly carried out
If the employer did not follow the statutory promotion steps, the obligation to pay the allowance for unused leave remains. Use this calculator to estimate the claimable amount.
Allowance vs. actually taking leave
When deciding whether to take remaining leave or convert it to cash, check the cash amount here. Taking the leave is often more beneficial for rest and productivity.
Formula (40h/week, 209h/month standard)
Hourly ordinary wage = Monthly ordinary wage / 209h
Daily ordinary wage = Hourly × 8h
Allowance = Daily × Unused days
How to read the result
The result is composed of: • Hourly ordinary wage: monthly ordinary wage ÷ 209 hours. • Daily ordinary wage: hourly ordinary wage × 8 hours (standard 40-hour workweek). • Total allowance: unused days × daily ordinary wage. Annual leave allowance is classified as earned income, so income tax and social insurance apply along with other wages. This calculator shows the face amount; actual deposit is net of taxes and contributions.
Worked examples
KRW 3M monthly ordinary wage, 5 unused leave days
Assume monthly ordinary wage KRW 3M, 5 unused leave days. ① Hourly ordinary wage = 3M / 209 ≈ KRW 14,354 ② Daily ordinary wage = 14,354 × 8 hours = KRW 114,832 ③ Allowance = 114,832 × 5 days = KRW 574,160
KRW 2.09M monthly ordinary wage, 1 unused leave day
Assume a monthly ordinary wage of exactly KRW 2.09M — the reference value where hourly wage comes out to exactly KRW 10,000. ① Hourly ordinary wage = 2.09M / 209 = KRW 10,000 (exact) ② Daily ordinary wage = 10,000 × 8 hours = KRW 80,000 ③ Allowance = 80,000 × 1 day = KRW 80,000 Designing a KRW 2.09M monthly wage makes the hourly rate divide out cleanly — useful as a reference point when cross-checking against the minimum wage.
Things to keep in mind
- Annual leave of 15 days accrues with at least 80% annual attendance; an additional day accrues every two years from year three, capped at 25 days.
- Workplaces with fewer than five regular workers are not subject to the statutory annual leave rule, so the allowance is not legally mandatory (it may be required by internal company policy).
- If the employer correctly follows the leave-use promotion procedure (written 1st notice in July, written 2nd notice in October, designation of usage period, etc.), the allowance obligation can be exempted — but only if every procedural step is followed.
- The allowance is based on ordinary wage, not average wage. Ordinary wage is typically lower, so the allowance is slightly smaller.
- The 209-hour figure assumes a 40-hour workweek. For shortened schedules (35h, 30h, etc.), a separate conversion is required.
- On retirement, the unused leave allowance must be paid in full within 14 days. Non-payment is reportable as wage arrears.
Frequently asked questions
- Is it based on ordinary wage or average wage?
- Under Enforcement Decree of the Labor Standards Act Article 33, the allowance can be paid using either average wage or ordinary wage, though ordinary wage is standard in practice. If a collective agreement or work rules specify average wage, that applies instead.
- Where does the 209 hours/month figure come from?
- 40 weekly hours + 8 hours of paid weekly rest = 48 hours is the wage-calculation basis per week, and a year averages 4.345 weeks, so 48 × (365/12/7) ≈ 209 hours. This is the standard monthly contracted hours for a typical 5-day workweek employee.
- Is the allowance waived if the employer ran the leave-use promotion procedure?
- If the employer completed the full legal procedure under Labor Standards Act Article 61 (first written notice in July, second written notice in October, specifying leave dates, etc.) and the employee still didn't use their leave, the employer's obligation to pay the unused-leave allowance is waived. If any step was skipped or wasn't in writing, the allowance can still be claimed.
- Is the allowance taxable?
- Yes, it's wage income and is withheld the same way as regular pay. This calculator only computes the pre-tax amount.
- How is ordinary wage calculated for monthly vs. hourly workers?
- Monthly-paid: daily ordinary wage = (monthly ordinary wage ÷ 209 hours) × 8 hours. Hourly-paid: daily ordinary wage = hourly wage × daily contracted hours. Daily-paid workers use their daily wage directly as the daily ordinary wage.
- Does social insurance apply to the allowance?
- Yes. It's classified as wage income, combined with other pay, and subject to social insurance and income tax. This calculator shows the gross (face value) amount, so actual take-home is somewhat lower.
- Does this apply to workplaces with fewer than 5 employees?
- Workplaces with fewer than 5 regular employees aren't subject to the Labor Standards Act's paid annual leave requirement, so there's no legal obligation to pay this allowance either. However, if company policy provides for annual leave, that policy's terms may create an obligation.
- What happens to unused leave when I resign?
- Supreme Court precedent holds that the leave-use promotion system cannot apply upon resignation, since using the leave becomes physically impossible. So unused leave must always be settled as a cash allowance at the time of resignation.
Official Sources
Always verify with the official sources below