Severance pay formula
Severance = average daily wage × 30 days × (days of service ÷ 365)
The average daily wage is your total wages for the 3 months before retirement divided by the number of days in that period (89–92 days). Overtime, night and holiday pay are all included, so shift workers get much more than a base-pay-only calculation. For bonuses and annual leave pay, 3/12 of the yearly amount is added.
FAQ
Do I get nothing if I am one day short of 1 year?
Yes. You need at least 1 year (365 days) of continuous service at the same company. Your retirement date is the day after your last working day.
Do EPS (E-9) workers get severance pay separately?
The departure guarantee insurance your employer buys works as your severance pay. If the payout is less than the legal severance pay, your employer must pay the difference. Check it in step 3 of this calculator.