Unused annual leave pay
Unused annual leave in Korea is paid out in cash. This derives your hourly ordinary wage from the monthly figure and multiplies a day's pay by the unused days.
KRW
Base pay + fixed allowances, excluding bonuses
h
How it works
Leave pay = daily ordinary wage × unused days. The daily wage is hourly ordinary wage × contract hours per day (usually 8).
The hourly wage divides monthly ordinary pay by paid monthly hours. For a 40-hour week that includes 8 paid weekly-holiday hours, giving 209 hours a month.
Assumptions
- Paid weekly holiday = weekly hours ÷ 5, capped at 8 hours
- Monthly paid hours = weekly paid hours × 365 ÷ 7 ÷ 12 (40h → 209)
- Hours per day = weekly hours ÷ 5, capped at 8
FAQ
When is it paid?
On the first payday after the leave year ends, or in full when you leave the company.
Can the employer refuse to pay?
Only if it followed the statutory 'leave promotion' procedure and you still did not take the days.