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Core Principles
Severance pay is the final reward for your hard work. According to the Labor Standards Act, any worker who has been employed for more than one continuous year is entitled to severance pay upon retirement or resignation.
The amount is roughly equivalent to one month's salary for every year of service, calculated based on the employee's average wage during the final three months.
Legal Requirements
Service Duration
Must be employed for at least 365 consecutive days. Part-time workers are included if they work more than 15 hours/week.
Payment Deadline
Employers must pay the full amount within 14 days of the employee's retirement, unless a special agreement exists.
Retirement Pension
Some companies use retirement pension plans (DB/DC). Your final payout depends on the type of plan implemented.