How to Calculate Daily Ordinary Wage in Korea – Guide for Foreign Workers

What Is Daily Ordinary Wage?

Ordinary wage (통상임금) refers to wages that are regularly, uniformly, and fixedly paid to a worker as agreed upon — as defined in Article 6 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제6조). The daily ordinary wage is ordinary wage converted into a per-day unit, and it serves as the basis for calculating various statutory allowances including overtime pay, night-work pay, holiday pay, advance notice pay for dismissal, and annual leave pay.

Formula for Calculating Daily Ordinary Wage

Daily ordinary wage is calculated in two steps.

① Calculate the Hourly Ordinary Wage

For monthly-salaried workers, divide the monthly ordinary wage by the monthly contractual working hours to get the hourly rate.

Hourly ordinary wage = Monthly ordinary wage ÷ Monthly contractual working hours

For workplaces with a 40-hour workweek, the monthly contractual working hours are typically 209 hours (including weekly holiday hours).

② Convert to Daily Ordinary Wage

Daily ordinary wage = Hourly ordinary wage × Daily contractual working hours

For example, if the monthly ordinary wage is ₩2,500,000 and the daily contractual working hours are 8 hours:
- Hourly wage = 2,500,000 ÷ 209 ≈ ₩11,962
- Daily ordinary wage = 11,962 × 8 = ₩95,694

What Is Included vs. Excluded from Ordinary Wage

To qualify as ordinary wage, an item must satisfy all three criteria: regularity, uniformity, and fixedness — as established by the Supreme Court en banc decision (대법원 2013다11226 전원합의체 판결).

Included items (examples)
- Base salary
- Position allowance, job duty allowance
- Qualification allowance
- Meal and transportation allowances paid fixedly (when paid uniformly to all employees)
- Seniority allowance

Excluded items (examples)
- Performance-based bonuses that vary by results
- Holiday bonuses paid only to employees on the payroll at a specific point in time (lacking fixedness)
- Business expense reimbursements and field activity costs of an actual-cost-reimbursement nature
- Condolence money for welfare purposes

⚠️ Whether a bonus qualifies as ordinary wage depends on the specific conditions and method of payment. Always check the exact wording of the employment rules (취업규칙) and collective agreement (단체협약). Note that your contract may set terms different from the statutory minimum.

Key Situations Where Daily Ordinary Wage Is Used in Practice

Advance notice pay for dismissal (해고예고수당) must be paid when an employer dismisses a worker without 30 days' prior notice, as required under Article 26 of the Labor Standards Act (근로기준법 제26조). The basis for this payment is the daily ordinary wage.

Common Mistakes

Mistake 1: Arbitrarily setting monthly contractual working hours
For a 40-hour workweek workplace, 209 hours is the standard, but this can vary depending on the work schedule — such as alternating weeks off or flexible working arrangements. Always verify your employment contract and workplace rules.

Mistake 2: Confusing ordinary wage with average wage
Severance pay (퇴직금) and shutdown allowances are based on average wage (평균임금), while overtime, night-work, and holiday allowances are based on ordinary wage (통상임금). Confusing the two can result in underpayment or overpayment of allowances.

Check It Directly on Bylaw

If you want to find out how much your ordinary wage is from your monthly salary, or verify that your overtime pay has been calculated correctly, try the Bylaw (workbylaw.com) salary take-home pay calculator. Enter your base salary and each allowance item to easily check your take-home pay along with ordinary-wage-based allowance calculations. If the calculated results differ from your actual pay slip, use the AI search feature to look up the legal principles that apply to your situation.

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