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.
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
- Ordinary wage or average wage?
- Article 33 of the LSA Enforcement Decree allows either, but ordinary wage is the practical default. If a collective agreement or work rules specify average wage, that overrides.
- Where does the 209 hours/month come from?
- 40 working hours + 8 paid weekly-rest hours = 48 hours/week × (365/12/7) ≈ 209 hours/month. It is the standard reference for full-time 5-day workers.
- What if the employer ran the leave-promotion procedure?
- Properly executed promotion under §61 LSA waives the unused-leave allowance obligation. Procedural defects keep the obligation in force.
- Is the allowance taxable?
- Yes — it is wage income and withheld like normal salary. This calculator outputs pre-tax amounts only.
- Is the allowance waived under the leave-use promotion system?
- If the employer correctly follows the statutory steps (written first notice in July, written second notice in October, designation of usage period), the employer's payment obligation is waived. If any step is missed or not in writing, the obligation remains and the allowance can be claimed.
- How is ordinary wage calculated for monthly vs. hourly workers?
- Monthly: daily ordinary wage = (monthly ordinary wage ÷ 209) × 8. Hourly: daily ordinary wage = hourly rate × daily contracted hours. For daily-paid workers, the day rate is the daily ordinary wage.
- Does social insurance apply to the allowance?
- Yes. The allowance is earned income, so income tax and social insurance apply along with other wages. The calculator's face amount is slightly higher than the actual deposit.
- Does the allowance apply to workplaces with fewer than 5 workers?
- Workplaces with fewer than five regular workers are not subject to the statutory annual leave provision, so the allowance is not legally mandatory. If internal policy provides for annual leave, the payment may follow that policy.
Official Sources
Always verify with the official sources below