Annual Leave in Korea: Meaning, Accrual Rules, and How to Use It — Foreign Workers' Guide

What Exactly Does "Annual Leave" Mean?

It is a term every worker uses, yet many do not know its precise meaning. "Annual leave" is short for annual paid leave (연차유급휴가), a statutory leave guaranteed by Article 60 of the Labor Standards Act (근로기준법 제60조). Two points are essential. First, it is paid — wages are still paid on days taken as leave. Second, it is a statutory right — an employer cannot unilaterally eliminate or reduce it.

Note for foreign workers: Your employment contract may provide more generous leave than the statutory minimum, but it cannot provide less.

When Does Annual Leave Accrue, and How Many Days?

Workers with Less Than 1 Year of Service

Under Article 60, Paragraph 2 of the Labor Standards Act (근로기준법 제60조 제2항), a worker who has not yet completed one year of employment earns 1 day of paid leave for each calendar month worked without absence. Up to 11 days can accumulate. Leave may be used as soon as it accrues, and days used are not deducted from the 15 days that arise upon completing one full year of service — the two accrue separately. The former Article 60(3) of the Labor Standards Act (근로기준법 제60조 제3항), which allowed such deduction, was deleted by the amendment of 28 November 2017, in force from 29 May 2018.

Workers with 1 or More Years of Service

A worker who attends at least 80% of scheduled working days in a year is entitled to 15 days of paid leave in the following year (Article 60, Paragraph 1 / 근로기준법 제60조 제1항). After that, 1 additional day is added every 2 years, up to a maximum of 25 days (same Article, Paragraph 4 / 같은 조 제4항).

Key Requirement: 15 or More Hours per Week

Article 18, Paragraph 3 of the Labor Standards Act (근로기준법 제18조 제3항) excludes ultra-short-hour workers whose scheduled weekly working hours are less than 15 from the annual paid leave provisions. Even part-time or temporary workers accrue annual leave if they work 15 or more hours per week, so always check the working hours stated in your contract.

What If You Cannot Use Your Leave? Unused Leave Allowance (연차수당)

Unused annual leave can be compensated at the rate of one day's ordinary wages (통상임금) per day. Ordinary wages include not only base pay but also any allowances paid on a regular and uniform basis.

However, if the employer has lawfully followed the leave-use promotion (연차 사용촉진) procedure under Article 61 of the Labor Standards Act (근로기준법 제61조), the obligation to pay an allowance for unused leave may lapse. The promotion procedure requires two steps: ① the employer notifies the worker in writing of the timing for using leave, and ② if the worker does not designate a time, the employer designates a time and notifies the worker in writing.

Must Annual Leave Be Taken in Full-Day Units?

No. Currently, Article 60 of the Labor Standards Act (근로기준법 제60조) sets out how annual paid leave accrues and when it is used — it contains no provision on hourly use. Instead, Ministry of Employment and Labor administrative interpretations take the position that annual leave is granted in units of a day in principle, but part of a day may be split and used by agreement between the parties. However, hourly use requires the worker's own request; an employer cannot unilaterally impose it.

Annual Leave and Severance Pay (퇴직금)

Unused leave allowances paid during the three months immediately before retirement may be included in the calculation of average wages, which in turn affects severance pay. Severance pay is calculated on the basis of average wages under Article 34 of the Labor Standards Act (근로기준법 제34조) and the Act on the Guarantee of Workers' Retirement Benefits (근로자퇴직급여 보장법), so a higher unused leave allowance can result in higher severance pay.

Calculate Your Own Annual Leave

The number of annual leave days varies depending on your start date and work pattern, making manual calculation cumbersome. Use the annual leave calculator at workbear.kr — just enter your start date to instantly see your remaining leave days and estimated unused leave allowance. The site also offers free calculators for severance pay, unemployment benefits, weekly holiday allowance (주휴수당), and more.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.