퇴직금 (severance pay): Do You Get It at the Airport or From Your Boss? 8 Common Questions

Common Questions

Q. Do I get 퇴직금 at the airport, or does my boss pay it? A. If an E-9 worker works for 1 year or more and leaves Korea, the insurance company pays the 출국만기보험 money. It does not come automatically. 1 month before your planned departure date, report your planned departure to 고용센터 (Job Center, the government employment office). If you then apply to the insurance company at least 7 days before departure, you can receive the money at the airport or in your bank account within 14 days after departure. If the insurance money is less than the legal 퇴직금, you claim the difference from your boss. Please see How to Get Departure Guarantee Insurance.

Q. What does "difference" mean? A. It is the 퇴직금 calculated by law, minus the insurance money. You claim this money from your boss. The difference is also 퇴직금, so it is difficult to claim it once 3 years have passed, counting from the day after you left the job.

Q. I do not understand the calculation. Where can I ask in Nepali? A. You can ask in Nepali at 1577-0071. On Saturdays and public holidays, only duty staff work, so there may be no Nepali-speaking counselor. The formula and examples are in How to Calculate and Get Severance Pay.

Q. I received less than I expected. Why? A. There can be several reasons. The 출국만기보험 part may have been taken out, 퇴직소득세 (retirement income tax) may have been taken out, or your wages in the last 3 months may have gone down. The insurance money builds up at 8.3% of your monthly 통상임금 (ordinary wage, your regular fixed pay). So if your wages went up or you did a lot of overtime, the legal 퇴직금 may be larger. Please ask the company for the details of its 퇴직금 calculation. For the insurance money, please ask the insurance company to confirm the lump-sum amount in writing.

Q. I worked in 2 shifts for a long time, but my work schedule changed at the end. Will my 퇴직금 go down? A. The daily amount is set from your wages in the last 3 months, so if your monthly pay went down, your 퇴직금 may also go down. However, if your daily average wage is less than your 통상임금, the 통상임금 is used for the calculation. Please see When Your Pay Dropped in the Last 3 Months.

Q. Before I quit, the company gave me no work and made me rest. A. If the time you rested because of the company's responsibility falls within the last 3 months, those days and the money you received at that time are left out when the average wage is calculated. At a workplace with 5 or more workers, you can also receive 휴업수당 (shutdown allowance, pay for time the company stops your work) separately. The 휴업수당 rule does not apply to workplaces with fewer than 5 workers. The average wage calculation may also be different there, so please check with 1350 or 1577-0071.

Q. By when should I receive it? The company says it will pay me one month later. A. In principle, it is within 14 days from the day you left the job. If there are special circumstances, the date can be extended by agreement. Please keep the agreement in writing, such as a text message. If payment is late without an agreement, please get advice from 1350 or 1577-0071. You can file a 진정 (complaint) with the 지방고용노동관서 (regional labor office) in charge of your workplace, or through 노동포털 (Labor Portal). It is difficult to claim 퇴직금 once 3 years have passed, counting from the day after you left the job. 간이대지급금 (simplified substitute payment) is money that 근로복지공단 (Korea Workers' Compensation and Welfare Service) pays first when the company has no money. Its deadline is shorter. You qualify only if you file a 진정 within 1 year, counting from the day after you left the job. After that, you claim from 근로복지공단 within 6 months from the date the 「체불 임금등·사업주 확인서」 (certificate of unpaid wages and employer) from 노동청 (labor office) was first issued. For the difference that an E-9 worker receives directly from the company, please check with 1350 or 1577-0071 about by when the company has to pay it. If you applied for 출국만기보험 money at least 7 days before departure, the insurance company pays it within 14 days after departure. If you apply after departure, or apply for a reason such as a change of your status of stay, it is within 14 days from the application date.

Q. If I change companies, what happens to my 퇴직금 from the previous company? A. It is calculated separately for each company. If you worked at the previous company for 1 year or more, you claim from that company. The time limit is 3 years, counting from the day after you left the job. If the previous company has closed or has no money, the 1-year deadline for 간이대지급금, counted from the same day, ends first. If you change workplaces and keep staying in Korea, the 출국만기보험 money from the previous company does not come within 14 days after you quit. You apply for this insurance money when you leave Korea or change your status of stay. Before that, to find out how much you can claim from the previous company, please check with 1350 or 1577-0071.

Where to Get Help

• 외국인력상담센터 (Foreign Workers Counseling Center) 1577-0071 (Nepali available, 365 days, 09:00~18:00. On Saturdays and public holidays, only duty staff work, so there may be no Nepali-speaking counselor)
• 고용노동부 (Ministry of Employment and Labor) customer counseling 1350 (Korean, weekdays 09:00~18:00)
• 출국만기보험 questions: 삼성화재 (Samsung Fire & Marine Insurance) 1600-0266
• 근로복지공단 1588-0075 (간이대지급금)
• 고용노동부 노동포털 (Labor Portal) labor.moel.go.kr