How to Calculate Overtime, Night-Shift & Holiday Pay in Korea: A Complete Guide for Foreign Workers

How Much Overtime, Night-Shift & Holiday Pay Should You Receive?

Many workers are unsure whether their extra pay has been calculated correctly. In Korea, what is commonly called "overtime pay" (야근 수당) is not a single concept—it is divided into three separate allowances: overtime allowance (연장근로수당), night-shift allowance (야간근로수당), and holiday allowance (휴일근로수당). Each has different requirements and calculation methods, so let's go through them one by one.

Note: Your employment contract may specify terms above the statutory minimums described below, but it cannot fall below them.

1. Legal Basis for the Three Allowances

Article 56 of the Labor Standards Act (근로기준법 제56조) provides as follows:

If work qualifies as both overtime and night-shift work simultaneously, the premiums are applied cumulatively. For example, 2 hours of overtime worked at 11 p.m. attract an overtime premium of 50% plus a night-shift premium of 50%, meaning you must receive 200% of your ordinary hourly wage for those hours.

2. Calculating the Hourly Ordinary Wage

The hourly ordinary wage (통상임금 시간급), which serves as the basis for all allowance calculations, is obtained by dividing the monthly ordinary wage by the monthly scheduled working hours (209 hours, based on a 40-hour week).

Hourly ordinary wage = Monthly ordinary wage ÷ 209 hours

The 2026 minimum wage is 10,320 won per hour, with a monthly equivalent of 2,156,880 won (based on a 40-hour week / 209 hours). For workers paid at the minimum wage level, this amount is the floor for the hourly ordinary wage.

When a fixed allowance exists: The Supreme Court has ruled that when converting a fixed allowance for overtime or night-shift work into an hourly ordinary wage, it must be divided by the actual agreed number of working hours as-is, and the hours must not be inflated by applying the premium multiplier (1.5x or 2x) (Supreme Court 2015da73067, 2015da73050 / 대법원 2015다73067, 2015다73050). This principle applies equally where a premium rate is set for the weekly holiday allowance (주휴수당).

3. Worked Calculation Example

Assume a worker with a monthly ordinary wage of 3,000,000 won (working a 40-hour week) works 3 hours of overtime on a weekday, finishing at 11 p.m.

4. Night-Shift Rotation Allowance and Ordinary Wage

Whether a night-shift rotation allowance (야간교대수당) paid to shift workers is included in ordinary wage is also important. The Supreme Court held that a night-shift rotation allowance paid uniformly, regularly, and unconditionally for night-shift work constitutes ordinary wage (Supreme Court 2019da288898 / 대법원 2019다288898). If it is included in ordinary wage, the base for calculating overtime, night-shift, and holiday allowances rises, making additional allowances claimable.

5. What If You Haven't Been Paid?

Failure to pay overtime, night-shift, or holiday allowances may result in criminal penalties of up to 3 years' imprisonment or a fine of up to 30,000,000 won under Article 109 of the Labor Standards Act (근로기준법 제109조). The statutory delay interest on unpaid wages is 20% per annum (Article 17 of the Enforcement Decree of the Labor Standards Act / 근로기준법 시행령 제17조). Unpaid allowances can be claimed up to 3 years after they fell due, even after leaving the job (Article 49 of the Labor Standards Act / 근로기준법 제49조).

To check whether your overtime pay has been calculated correctly, use the salary take-home calculator at workbear.kr. It lets you verify allowances based on ordinary wage and your net take-home pay all in one place. If you suspect underpayment, the AI search feature also lets you look up relevant statutes and court precedents instantly.

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

Frequently Asked Questions

Does overtime pay apply to all companies in Korea?

Article 56 of the Labor Standards Act 근로기준법 제56조 applies in full to workplaces with 5 or more regular employees, meaning overtime, night-shift, and holiday premium allowances must be paid. Workplaces with 4 or fewer employees are not subject to the premium allowance provisions Annex 1 of the Enforcement Decree of the Labor Standards Act, 근로기준법 시행령 별표 1 .

My employer says overtime pay is already included in my fixed monthly salary. Is that valid?

Even under an all-inclusive 포괄임금 wage agreement, if the amount paid is less than the statutory allowances calculated on the basis of actual overtime, night-shift, and holiday hours worked, the shortfall can be claimed additionally. The Supreme Court has ruled that an all-inclusive wage arrangement is invalid if it is disadvantageous to the worker.

Is night-shift allowance included in ordinary wage (통상임금)?

A night-shift rotation allowance 야간교대수당 paid uniformly, regularly, and unconditionally for night-shift work qualifies as ordinary wage Supreme Court 2019da288898, 대법원 2019다288898 . If the payment conditions are irregular or non-uniform, however, it may be excluded from ordinary wage.

When converting a fixed allowance into an hourly ordinary wage, should the premium multiplier be applied?

No. The Supreme Court ruled that when converting a fixed allowance for overtime or night-shift work into an hourly ordinary wage, it must be divided by the actual agreed number of working hours as-is, without multiplying by the premium rate 1.5x or 2x to inflate the hours Supreme Court 2015da73067, 2015da73050, 대법원 2015다73067, 2015다73050 .