Severance pay and departure guarantee insurance: what to check before leaving

If you worked one year or more, you can generally get severance pay. How it differs from E-9 departure insurance and the pension lump-sum.

Updated Oct 21, 2026As of Oct 20267 min read

When you leave a job in Korea, check your severance pay (퇴직금). If you are an E-9 worker, also check your departure guarantee insurance (출국만기보험). Both are different from the National Pension lump-sum refund, which you claim from NPS.

Severance pay (퇴직금)

Who: you worked for the same employer for 1 year or more without a break, on average 15 hours or more per week.
How much: at least 30 days of average wage for each year of service (the legal minimum). Average wage is generally based on your wages in the last 3 months.
When: it must generally be paid within 14 days after you leave, unless you and your employer both agree to extend the date.
Tax: retirement income tax is withheld from it. Thanks to deductions the tax is often small, but it depends on your pay and years of service.

E-9 workers: departure guarantee insurance

Employers of E-9 workers must subscribe to departure guarantee insurance (출국만기보험) and pay monthly premiums. The money is saved up for your severance pay. In general, it is paid to you after you leave Korea. Procedures can change, so check the insurer’s or EPS (Employment Permit System) notice for the current steps. If the insurance amount is less than your legal severance pay, your employer must pay the difference.

There are also insurances that you subscribe to yourself as an E-9 worker: return-cost insurance (귀국비용보험), which helps with costs when you go home, and accident insurance (상해보험). Check your policy documents for what they cover and how to claim.

Severance, departure insurance and pension: the differences

Item	Severance pay	Departure guarantee insurance (E-9)	National Pension lump-sum
Who pays in	Employer	Employer (monthly premiums)	You and your employer
Who can get it	Workers with 1 year+ of service and 15+ hours a week	Generally E-9 workers with 1 year+ of service (it counts toward severance pay)	Depends on visa and nationality
When	Generally within 14 days after leaving	Generally after you leave Korea	Generally after departure is confirmed
Where to ask	Your employer; Ministry of Employment and Labor	The insurer; EPS notices	National Pension Service (NPS)

Swipe to see the whole table

Before you leave: checklist

1
Check your contract dates
Confirm your start date and last working day. They decide whether you reach 1 year and how many years count.
2
Request a wage statement
Ask for your payslips or a wage statement, especially for the last 3 months.
3
Confirm your bank account
Decide which account will receive the money. Tell your employer and the insurer before you leave.
4
Contact the insurer (E-9)
Check when and how departure insurance and return-cost insurance are paid.
5
Keep your papers
Keep payslips, your contract and bank records until everything is paid.

Not paid? Call the Ministry of Employment and Labor customer centre at 1350 or visit your local labour office. Keep your payslips and contract as proof.

Questions about the tax on your severance pay? Our partner licensed tax accountant can check the tax part.

Official sources

We link to the original source so you can check it yourself.

General information only. Rules change and depend on your situation — talk to an expert before you act.

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