E-9 severance pay & departure guarantee insurance

How it is calculated

• Act on the Employment of Foreign Workers Art. 13 · Enforcement Decree Art. 21②1 · Ministry of Employment and Labor Notice No. 2011-33 — employer pays at least 8.3% (83/1,000) of the monthly ordinary wage written in the employment permit into departure guarantee insurance
• If the insurance is less than legal severance, the employer pays the difference (Enforcement Decree Art. 21③). The insurer pays within 14 days after you leave Korea (or after you apply, e.g. on a visa status change), and the claim expires after 3 years (Act Art. 13③④)
• Employee Retirement Benefit Security Act Art. 8 — 30 days of average wage per year worked; Art. 4① — none under 1 year or under 15 hours a week (averaged over 4 weeks)
• Labor Standards Act Art. 2 — average wage = last 3 months pay ÷ days; if lower than ordinary wage, ordinary wage is used
• Bonuses with terms set by a collective agreement or company rules, or paid regularly as a long-standing practice: 3/12 of what you got in the last 12 months is added to the 3 months pay (Ministry of Employment and Labor Directive No. 96). Unused annual leave pay from the year before is added the same way (3/12); leave pay that arises only because you leave is not added (Ministry interpretation)
• Insurance interest differs by insurer and is not counted. If you leave within 1 year, the insurance goes to the employer (Enforcement Decree Art. 21②2)

Worked example — 2023-01-01 to 2025-12-31 (1,096 days), KRW 7.5M in last 92 days → 81,521.74 × 30 × 1,096 ÷ 365 = 7,343,656 · (above the ordinary daily wage 2M ÷ 209 × 8 = 76,555, so the average is used) · insurance 2M × 8.3% × 36 = 5,976,000 → employer owes 1,367,656

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