If Your Employer Says 'I Will Pay You Next Month': Late Wages Earn 20% Interest per Year

When does this apply?

• Payday has passed, but the money has not come in.
• Only part of the money came in, and your employer says the rest will come next month.
• The payment date changes every month.
• This month is the 2nd or 3rd time your pay is late.

How much is the interest?

• Formula: late wages × 20% × number of days late ÷ 365
• Example: If 200만 원 is 30 days late, the interest is about 32,800원.

The interest is not large. What matters more is getting the unpaid wages themselves quickly. If there is a reason set by law, such as a natural disaster, the interest may not apply.

Steps

1. Check your payday. Look at the date written in your 근로계약서 (employment contract).
2. Ask by text message. "I did not receive my ○ month wages of ○○ won on the ○ day. When will you pay?" Save the reply.
3. If your employer says "I will pay next month," get that by text message too. Make sure the amount and the date are both in the message. This alone does not take away your rights.
4. Make a table of the months that are late. Write the money you should receive, the money you received, and the dates. Take screenshots of your bank records.
5. If you are still not paid on the promised day, file a complaint. Submit it on the 노동포털 (Labor Portal, labor.moel.go.kr) or at the 고용노동관서 (local labor office) for your area. See How to report unpaid wages.
6. If the company says it has no money, ask about 대지급금 (substitute payment). The conditions are in the same article.

What to prepare

• 근로계약서
• 급여명세서 (pay slip) and bank deposit records
• Text messages between you and your boss
• Records of your working hours

Things to be careful about

• Do not wait a long time. The larger the unpaid amount becomes, the harder it may be to get it back.
• Do not sign a paper that says "I will not take the money." Calculate the amount and ask 1350 first.
• The date is different when you quit. When you leave your job, you receive the remaining money and your 퇴직금 (severance pay) within 14 days.
• Unpaid wages can be a reason to change your workplace. Reasons that are the employer's fault do not count toward your number of changes. See also Unpaid wages when your stay period is ending.
• After 3 years, it is difficult to claim your wages. See The 3-year time limit.
• If you are mistreated after reporting, see If your boss mistreats you after you report.

Frequently asked questions

Q. Do I have to apply for the interest separately? A. When you file a complaint, write that you also want to receive the late-payment interest. Then ask the labor inspector in charge how it will be handled.

Q. Do I apply to the Ministry of Employment and Labor for the 3 times damages? A. No. You claim it at a court, separately from your complaint to the ministry. Get advice first, then decide about the cost and the process.

Q. Can I file a complaint if I do not have legal stay status? A. Yes. If a foreigner reports unpaid wages, the labor inspector does not have to report that person to immigration.

Where to get help

• 고용노동부 (Ministry of Employment and Labor) customer counseling 1350
• 외국인력상담센터 (Foreign Workforce Counseling Center) 1577-0071 (Nepali available, open 365 days, 09:00~18:00)