Does a pay drop before leaving lower my retirement pay?

Yes, unless the period falls under a statutory exclusion.

Are meal allowances included?

Regular meal allowances generally are.

Average wage (Korea)

⚖️ Law By CampusDown Wiki Editorial Team Last updated October 26, 2026

The average wage is the total wages paid to a Korean worker in the three months before a triggering event, divided by the calendar days in that period. It's the basis for retirement pay, shutdown allowances, and accident compensation.

Contents

1. Concept
2. Uses and example
3. FAQ
4. References

Concept

Introduced in the 1953 Labor Standards Act to reflect a worker's usual living wage, the average wage is based on what was actually paid. It includes overtime and bonuses, unlike the fixed ordinary wage. If the average wage is lower, the ordinary wage applies instead. Annual bonuses and unused-leave pay are added at 3/12. Periods such as probation, parental leave, and work-injury absence are excluded.

Uses and example

The average wage underpins retirement pay (30 days per year), shutdown allowances (70%), accident benefits, and the daily base for unemployment benefits (60%, capped). With ₩9 million over 92 days, the average wage is about ₩97,826, and one year's retirement pay is about ₩2.93 million.

FAQ

Does a pay drop before leaving lower my retirement pay?: Yes, unless the period falls under a statutory exclusion.
Are meal allowances included?: Regular meal allowances generally are.

Sources reviewed: 2026-10-26

References

근로기준법 제2조 제1항 제6호(평균임금), 국가법령정보센터. https://www.law.go.kr
고용노동부. https://www.moel.go.kr

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

Find more reports · Search '평균임금' on CampusDown →

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This article was last updated on October 26, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.