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South KoreaMediumWages & AllowancesContracts & Employment

Severance pay reform — sample reference

Published:
January 20, 2025
Effective:
March 1, 2025
Editor verified:
April 6, 2026

Summary

Illustrative entry for Korea's severance pay system. Link to MOEL official resources.

Issuing Authority

Ministry of Employment and Labor

Impact Level

Medium

Main Impact

Payroll liabilities; severance trust management; retirement benefit accounting.

Recommended Corporate Response

Review severance trust funding; update payroll systems; communicate changes to finance.

View Official Source

https://www.moel.go.kr/eng/policy/policyinfo.do

View Official Source