Annual Leave Calculation Guide: From New Hires to 10-Year Veterans

Understanding your annual leave entitlement is crucial for every worker in Korea. The Korean Labor Standards Act provides a structured system for paid annual leave that increases with tenure. Whether you just started your first job or have been with your company for a decade, knowing your exact leave days helps you plan vacations and protect your rights.

Annual Leave for New Employees (Under 1 Year)

If you've been employed for less than one year, you earn monthly leave (월차) instead of annual leave. For each month of perfect attendance, you earn 1 day of paid leave. This means you can accumulate up to 11 days in your first year of employment.

Important: These monthly leave days must be used within the first year. If unused, they expire unless your company policy states otherwise. Starting from 2018 amendments, monthly leave earned in the first year does NOT reduce your 15-day entitlement in the second year.

Annual Leave After 1 Year

Once you complete your first year of employment with 80% or higher attendance, you're entitled to 15 days of annual leave. This is the standard baseline that applies to all workers who meet the attendance requirement.

• 1 year completed: 15 days
• 3 years completed: 16 days (15 + 1 extra day for 2 years over year 1)
• 5 years completed: 17 days
• 7 years completed: 18 days
• 9 years completed: 19 days
• Maximum: 25 days (reached at approximately 21+ years)

The formula is: 15 + floor((completed years - 1) / 2), capped at 25 days. Every 2 additional years of service beyond the first year adds 1 extra day.

Unused Annual Leave Compensation

If you don't use all your annual leave within the year, your employer must compensate you financially for unused days. This is calculated as: Daily Wage × Number of Unused Leave Days. However, employers can implement a 'leave promotion system' (연차사용촉진제도) where they formally encourage you to use your leave. If they follow the proper legal procedure and you still don't use the leave, the employer may not be obligated to pay compensation.

Special Cases

• Part-time workers: Entitled to proportional annual leave based on their work hours compared to full-time equivalents.
• Fixed-term contracts: Leave accrues normally regardless of contract length. If your contract ends before using leave, you receive compensation.
• Maternity/Paternity leave: These are separate from annual leave and don't reduce your entitlement.
• Sick leave: Korean law doesn't mandate paid sick leave separately — workers typically use annual leave for illness unless company policy provides dedicated sick days.

Tips for Managing Your Annual Leave

• Track your leave balance regularly using our Annual Leave Calculator.
• Plan major vacations early in the year to secure approval.
• Understand your company's leave promotion deadline — typically notified 6 months and again 2 months before expiry.
• If you resign, all accrued unused leave must be compensated in your final paycheck.