💸 International students can also receive severance pay!

Many international students in Korea work part-time jobs, but often they are not aware they can receive severance pay.

To get straight to the point, international students can also receive severance pay! 😀

VIVISA will clearly explain the requirements, calculation method, and application process for severance pay with practical examples!

💼 What is severance pay?

Severance pay is a legally mandated amount a company must pay an employee who has worked for more than one year upon retirement.

Simply put, you can think of it as a system designed to provide a minimum reward for the work done and to help prepare for life after resignation.

🌟 Also importantly! Regardless of nationality or visa type, anyone classified as a 'worker' can receive severance pay under the same conditions.

👉 This applies to part-time student workers and foreign workers too.

📌 Severance Pay Criteria

1️⃣ Payment Conditions

Regardless of whether they are Korean or foreign workers, if part-time student workers meet the following conditions, they are eligible for severance pay.

• More than 15 hours worked per week

• More than one year worked at the same business

⚠️ With any visa such as D-2, D-4, E-7, F-2, as long as the eligibility conditions are met, you can receive severance pay; however, working in violation of visa regulations (unauthorized part-time work, exceeding allowed work hours per week, etc.) might be disadvantageous in case of disputes!

2️⃣ Severance Pay Calculation

Severance Pay = (Average Daily Wage × 30 days) x Years Worked

※ ‘Average Daily Wage’ is calculated based on the average salary of the last 3 months.

Example)

• Total salary for the last 3 months: 1,800,000 KRW

• Average Daily Wage = 1,800,000 KRW / 90 days = 20,000 KRW

• Years Worked = 1 year

• Severance Pay = (20,000 KRW × 30 days) x 1 year = 600,000 KRW

⚠️ Taxes (retirement income tax) are imposed on severance pay.

The amount credited is the net amount after deducting retirement income tax, not the entire payment.

Tax rates may vary based on residency status, tax treaties with countries, employment type, etc., so it's most accurate to inquire with the company or the Labor Office for exact tax calculations! 💬

📝 Severance Pay Application Process

1️⃣ Notification and Request of Intent to Resign

When resigning, you must first officially notify your employer of your resignation intent, and once acknowledged, proceed with the resignation process in accordance with company rules.

During this process, you can claim severance pay through mutual agreement with the employer.

2️⃣ Severance Payment

Severance pay is issued within 14 days from the date of resignation.

However, the deadline for payment can be extended through agreement with the employer in case of special circumstances.

3️⃣ Additional Procedure (if needed)

If the company does not pay the severance pay without a valid reason, you can file a “non-payment of severance pay report” to the Ministry of Employment and Labor.

The Labor Ministry provides mobile consultation and interpretation support, allowing foreigners to easily report.

👉 Ministry of Employment and Labor website: https://www.mohw.go.kr/

💡 TIP

Before claiming severance pay, prepare employment contracts, attendance records, salary statements in advance to handle the process much more easily without disputes.

❓Frequently Asked Questions

1️⃣ Can foreign workers also receive severance pay?

Yes, foreign workers can receive it if they work more than one year in accordance with the Labor Standards Act, irrespective of nationality or visa type.

2️⃣Can I receive severance pay if I worked only 3 days a week, 5 hours a day?

If you worked more than one year at the same business and worked over 15 hours on average per week based on the last 4 weeks, you're eligible for severance pay.

3️⃣ Can I still receive severance pay without a written contract?

Even without a written contract, if there is evidence that you actually worked, you are eligible for payment.

Paystubs, bank deposit records, or termination notices (resignation letters) are sufficient evidence.

4️⃣ Are hours worked beyond the allowed working hours per visa type included?

In principle, the base for severance calculation is the actual hours worked.

However, significantly violating visa regulations can be problematic in disputes, so be cautious!

5️⃣ Should I notify my intent to resign first?

Yes, informing your employer of your resignation intent initiates the severance payment process.

6️⃣ Can I still receive severance pay if the company has closed down?

Yes, in this case, you can claim severance pay through a wage arrear complaint to the Ministry of Employment and Labor.

💬 If you are confused or want to check additional details during the part-time job severance pay request process,

👉 Please feel free to consult VIVISA anytime through Consulting.

VIVISA will inform international students of the rightful entitlements they should enjoy. 💙