Finance8 min read|SJSeokjun

How Many Annual Leave Days Do You Earn in Korea? 2026 Rules & Payout Math

From your first month on the job to veteran years — exactly how annual leave accrues in Korea, who qualifies, and how unused-leave payout is calculated with real numbers.

When I left my last job, I had 7 unused leave days sitting on my account. I honestly thought HR would just say thanks and move on. Instead, an extra 1.4 million won landed in my final paycheck. I had to dig into the labor code to figure out where that number came from.

Most people in Korea treat annual leave as a vague number their manager vaguely approves. But the Labor Standards Act is pretty specific. Your leave days are locked in by tenure, attendance, and contract type — and if you don't use them, your employer usually owes you cash. Knowing the exact rules changes how you plan vacations and how you negotiate when you quit.

What you'll learn

  • Exactly how many leave days you earn in year 1, year 2, and beyond
  • How to calculate unused-leave payout (연차수당) with real numbers
  • When your employer can legally avoid paying you for unused leave

Who qualifies for annual leave

Annual leave under the Labor Standards Act applies to any workplace with 5 or more employees. If you work at a smaller shop with 4 or fewer people, the legal right to annual leave doesn't apply — though many still offer it voluntarily. You also need to work at least 15 hours per week to qualify.

Part-timers aren't excluded. They just get leave in proportion to their hours. Someone working 20 hours a week gets half the leave days of a full-timer. Fixed-term contract workers accrue leave normally too, and if the contract ends before you use it, the leftover days convert to cash.

Year 1: the monthly leave system

In your first year, annual leave works differently. You don't get 15 days dropped into your account on day one. Instead, for every full month you work without any unauthorized absences, you earn exactly 1 paid day off. Work 11 months, earn 11 days. That's the cap for the first year.

These first-year days used to reduce your year-2 allowance, but the 2018 amendment changed that. Now, whatever you earn monthly in year 1 is completely separate from the 15 days you get when year 2 starts. So a new hire who stays two full years can theoretically use up to 26 paid leave days across those 24 months.

Year 2 and beyond: how leave grows with tenure

Once you finish a full year with at least 80% attendance, you unlock the standard 15-day annual leave. From there, every two additional years of service adds one more day. The cap is 25 days, which you hit around the 21-year mark.

Years of serviceAnnual leave daysNotes
Under 1 yearUp to 11 days1 day per month worked
1 year15 daysStandard baseline
3 years16 daysFirst bonus day
5 years17 days+1 every 2 years
10 years19 days
15 years22 days
21 years+25 daysLegal maximum

The formula behind this is simple: 15 + floor((years - 1) / 2), with 25 as the ceiling. So a 7-year veteran gets 15 + 3 = 18 days. A 20-year veteran gets 15 + 9 = 24 days, just shy of the max.

Try this tool now:

Annual Leave Calculator

Calculating unused-leave payout (연차수당)

Here's where things get real. If you don't use all your leave within the year, your employer has to pay cash for the leftover days. The formula is one day of ordinary wage multiplied by the number of unused days.

Ordinary wage isn't the same as gross salary. It's your base pay plus any fixed, regular allowances that you get no matter what — excluding bonuses and overtime. For most office workers, dividing monthly base pay by 209 hours gets you an hourly rate, and multiplying by 8 gives you the daily wage used here.

Payout for 7 unused days at 3.2M base salary

1.Monthly ordinary wage: 3,200,000 won
2.Hourly rate: 3,200,000 ÷ 209 ≈ 15,311 won
3.Daily wage (8 hours): 15,311 × 8 ≈ 122,488 won
4.Unused days: 7
5.Total payout: 122,488 × 7 ≈ 857,400 won

If your ordinary wage is higher — say you have a 4M base — the same 7 days would be worth closer to 1.07M won. People routinely underestimate this number. It's essentially a bonus you've already earned but haven't collected.

The leave promotion system — how employers legally avoid paying

There's a catch worth knowing about. If your company runs a proper leave promotion procedure (연차사용촉진제도), they might not owe you anything for unused days. The procedure has specific steps: 6 months before the leave expires, HR must notify you in writing of your remaining days and ask you to submit a usage plan. If you don't respond, they must designate specific dates for you 2 months before expiry.

Only if both steps are followed on time does the employer's payout obligation disappear. In practice, plenty of companies skip steps or send vague emails instead of formal notices. In those cases, you're still entitled to cash.

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Don't assume your company did it right

If HR tells you 'we ran the promotion procedure so you don't get paid for unused days,' ask for proof — the written notice from 6 months out and the date-designation letter from 2 months out. Without both in writing, the procedure is invalid and you can claim the payout. I've seen people recover over a million won just by asking for documentation.

When you quit: leave settlement at resignation

On your last day, every day of leave you've accrued but haven't used has to be paid out. No exceptions, no promotion procedure. This often adds up to more than people expect because leave from the current year is included, even if the year hasn't ended yet.

For a 5-year veteran resigning in June with 17 days of accrued leave and only 4 days used, that's 13 unused days. At a 3.5M base, the payout comes out to roughly 1.74M won — a meaningful last check.

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Three things to check before you resign

First, request a leave balance statement from HR before giving notice. This locks in the official number. Second, time your resignation after you've completed a full year if you're close — one extra month of tenure can mean 1 more accrual day and a meaningfully higher payout. Third, confirm that your final paycheck includes both unpaid salary and the leave payout line-item. Separation pay is legally required within 14 days of your last day, and if it's missing or short, you can file a complaint with the labor office.

Frequently Asked Questions

Does maternity or sick leave count against my annual leave?

Maternity and parental leave are separate entitlements and don't reduce your annual leave. The Labor Standards Act actually treats them as counted days for the 80% attendance threshold, so taking maternity leave won't disqualify you from the 15-day allowance. Sick leave is trickier — Korean law doesn't mandate separate paid sick days, so most people use annual leave when they're ill unless their company has its own sick policy.

My manager keeps denying my leave requests. Is that legal?

Employers have the right to shift the timing of your leave for legitimate operational reasons, but they cannot outright deny it. If your workload or timing genuinely disrupts business, they can ask you to move it to a different week. But refusing every request or telling you to save leave for 'a better time' isn't allowed. If it keeps happening, document the requests and escalate to HR or the labor office.

I've been at the company 11 months. Do I really have no annual leave yet?

You have up to 11 days of monthly-accrued leave from your first year — one for each full month of attendance. It's not nothing, but it's not the standard 15 days either. Once you hit the 12-month mark, you instantly get the 15 days on top. So a 12-month stay can actually come with 26 total leave days across the two years.

Can my company pay me in cash instead of giving me time off?

Not proactively. The law expects actual rest, not cash substitution. Your employer can only convert leave to cash after the leave year expires without you using the days — and only if they didn't run a valid promotion procedure. Offering cash instead of letting you take leave is technically not allowed, though many small companies still do it informally.

I'm a freelancer on a 3.3% contract. Do I get annual leave?

Technically no, because 3.3% workers are classified as independent contractors rather than employees. But if your actual working conditions look like employment — fixed hours, a supervisor, a workplace — you may qualify as a disguised employee and could claim leave retroactively. The labor office handles these cases case-by-case, and several court rulings have sided with workers.

What happens to unused leave if the company goes bankrupt?

Unpaid leave cash is treated as wage arrears and gets priority in bankruptcy. You can also apply for wage compensation (체당금) through the government, which covers up to 3 months of unpaid wages and leave payout when the employer can't pay. File through the labor office as soon as you learn about the bankruptcy.

Annual Leave Calculator

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SJ

Seokjun

Founder of QuickFigure. Building tools that make complex calculations and document tasks simple for everyone.

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