Three ways a salary is split
| Structure | Regular month at 52M KRW | What it really contains |
|---|---|---|
| Divided by 12, severance separate | about 4.33M | 52M wages + severance on top |
| Divided by 13, severance included | 4.0M | 48M wages + 4M severance share |
| Bonus-included (base + holiday or year-end bonuses) | lower in regular months | paid in bonus months |
In the app formula, 52M divided by 12 leaves about 3.66M KRW a month; divided by 13 (4M a month) leaves about 3.41M, roughly 250,000 KRW less every month (no dependents, 200,000 meal allowance, 2025 rates, progressive tax).
The severance-included trap
Korean severance pay (toejikgeum) is owed when you leave after at least one year of continuous service: at least 30 days of average wages per year worked. This applies to foreign employees too. An agreement that folds severance into monthly wages is in principle invalid, because the right arises only when you leave. Exceptions can apply, for example where severance is clearly agreed as a separate extra payment, so ask the Ministry of Employment and Labor (1350) about your case.
For comparisons, treat “52M including severance” as 48M of wages.
What to look for in the contract
- Phrases like “annual salary includes retirement pay” or “1/13 of salary is retirement pay”
- Whether bonuses are part of the annual figure, when they are paid and whether you must still be employed on the payment date
- Whether a fixed overtime allowance is built in (an all-inclusive wage), which means a lower base salary
- If the contract is only in Korean, ask for a translation or a bilingual copy before signing
What to enter in the app
The Android app Salary to Chicken divides an annual figure by 12. If your salary is divided by 13 or includes bonuses, entering the annual number overstates monthly take-home.
Use “Monthly” with your regular-month pay
Choose “Monthly” and enter the regular monthly amount from your contract, without the severance share or bonuses.
Treat bonuses separately
More tax is withheld in bonus months. “Net / year” in the app is the regular month × 12, so add bonuses on top in your own notes.
FAQ
Can I claim severance again when I leave?
Split-severance agreements are generally treated as invalid, but how money already paid is handled depends on the case. Get advice from the Ministry of Employment and Labor or a licensed labor attorney.
What if my contract is under one year?
Severance only arises after one year of continuous service. If a sub-one-year contract divides salary by 13, ask your employer why.
Sources: Easylaw, severance pay (Korean)
Salary to Chicken: Take-Home
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