Understanding Korean Work Leave and Pay Deduction Policies

Navigating through the employment laws and regulations in Korea can be a complex task, especially for TEFL teachers who might not be familiar with the local language and legal system. This article aims to shed light on some key concepts related to work leave, statutory holidays, and pay deduction policies in Korea, providing a simplified yet accurate explanation in English.

Legally-Mandated Weekly Paid Holidays and Allowance

• Korean Labor Standards Act mandates that employers provide workers with one legally-mandated weekly paid holiday per week, known as legally-mandated weekly paid holidays.
• Applicable only if you work more than 15 hours per week.
• If you were absent during the week, the legally-mandated weekly holiday pay may not be provided.
• Regardless of whether you work two or six days a week, one legally-mandated weekly paid holiday must be provided.
• Sunday is commonly designated as the legally-mandated weekly paid holiday, but another day can be chosen if weekends are working days.

Saturdays and Legal Holidays

• Saturday is typically an unpaid day off.
• Statutory holidays are paid days off.

Specific Legal Holidays

The holidays that are designated as statutory paid holidays include:

1. Public Holidays: 15 days or more
   • Among national holidays: Independence Movement Day (3.1), Liberation Day (8.15), National Foundation Day (10.3), and Hangul Day (10.9). Constitution Day (7.17) is excluded.
   • January 1st
   • Lunar New Year (3 days)
   • Chuseok (3 days)
   • Buddha’s Birthday
   • Christmas Day
   • Children’s Day (5.5)
   • Memorial Day (6.6)
   • Election days as per Article 34 of the Public Official Election Act (Presidential Election Day, General Election Day for National Assembly Members, Nationwide Local Elections Day)
   • Other intermittently designated days (temporary public holidays)
2. Substitute Public Holidays
   • If the following public holidays fall on a Saturday, Sunday, or overlap with another public holiday, the first non-public holiday following the public holiday is designated as a substitute public holiday: Independence Movement Day (3.1), Children’s Day, Buddha’s Birthday, Liberation Day (8.15), National Foundation Day (10.3), Hangul Day (10.9), and Christmas Day.
   • If the following public holidays fall on a Sunday or overlap with another public holiday, the first non-public holiday following the public holiday is designated as a substitute public holiday: Lunar New Year (3 days) and Chuseok (3 days)

Note: Days when substitute public holidays are not applied

• January 1st
• Memorial Day (6.6)
• Constitution Day (7.17)

Calculating Pay Deductions

Let’s assume you work from 9 am to 6 pm with a one-hour break, earn a monthly salary of 2,500,000 KRW, and took unpaid leave on October 5th, 6th, and 10th, 2023. How should your employer calculate your pay? While the law instructs to calculate per working day, it doesn’t specify the method. Here are three commonly used, legally accepted methods:

1. Dividing by the number of days in the month:
   • Deduction for absent days: 2,500,000*3/31 = 241,935 KRW
   • Deduction for 2 days of weekly legally-mandated weekly holiday pay: 2,500,000*2/31 = 161,290 KRW
   • Payable salary (pre-tax): 2,500,000 – (241,935 + 161,290) = 2,096,775 KRW
2. Using a standard 30 days per month:
   • Deduction for absent days: 2,500,000*3/30 = 250,000 KRW
   • Deduction for 2 days of weekly legally-mandated weekly holiday pay: 2,500,000*2/30 = 166,667 KRW
   • Payable salary (pre-tax): 2,500,000 – (250,000 + 166,667) = 2,083,333 KRW
3. Calculating hourly wage based on 209 hours per month:
   • During the weekdays, you work 8 hours/day * 5 days/week = 40 hours/week. Adding 8 hours of legally-mandated weekly paid holidays(주휴일), the standard working hours per week become 48 hours. To calculate the monthly standard working hours, we take the annual average of weeks per month, which is 52.142 weeks/year ÷ 12 months/year = approximately 4.345 weeks/month. Therefore, 48 hours/week x 4.345 weeks/month = 208.56 hours/month, which is rounded to approximately 209 hours/month.
   • Hourly wage: 2,500,000/209 hours = 11,962 KRW
   • Deduction for absent days: 11,96283 = 287,081 KRW
   • Deduction for 2 days of weekly legally-mandated weekly holiday pay: 11,96282 = 191,388 KRW
   • Payable salary (pre-tax): 2,500,000 – (287,081 + 191,388) = 2,021,531 KRW

Points to Note

• Since Saturday is inherently an unpaid day off, it should not be deducted again.
• Statutory paid holidays, such as Hangul Proclamation Day in the given example, should not be subject to deductions, as the law mandates employers to provide payment for these days..

This guide aims to assist TEFL teachers in Korea to understand their rights and calculate their salaries accurately, even when taking unpaid leave. Always consult with your employer or a legal professional for specific advice tailored to your situation.