Overtime Pay at 1.5x in Korea: How It's Calculated — Foreign Workers' Guide

What Is the Legal Basis for 1.5x Overtime Pay?

Many workers wonder: "I worked late — am I actually being paid correctly?" Overtime pay (야근수당), more precisely extended work allowance (연장근로수당), is clearly stipulated in Article 56 of the Labor Standards Act (근로기준법 제56조).

Article 56, Paragraph 1 of the Labor Standards Act (근로기준법 제56조 제1항): An employer shall pay no less than 50/100 (50%) of ordinary wages on top of the regular wage for extended work.

In other words, when an employee works beyond the statutory working hours (8 hours per day, 40 hours per week), the employer must pay 1.5 times the ordinary wage (base 1x + additional 0.5x) for every hour of overtime.

When Does Extended Work Apply?

Extended work requires agreement between the parties and may not exceed 12 hours per week (Article 53 of the Labor Standards Act, 근로기준법 제53조). The obligation to pay the 1.5x rate arises the moment working hours exceed the statutory 40 hours per week.

For example, if you work 10 hours a day from Monday to Friday, that is 50 hours per week — meaning 10 hours qualify as extended work. Those 10 hours must be compensated at 1.5 times the ordinary wage.

What Is Ordinary Wage (통상임금)?

The ordinary wage (통상임금) used as the basis for the 1.5x calculation is not simply the base salary. According to the Supreme Court en banc ruling (대법원 전원합의체 판결, Case No. 2013다11671), ordinary wage refers to "wages paid regularly, uniformly, and fixedly as consideration for contracted work." Fixed allowances such as job-duty allowances (직무수당), position allowances (직책수당), and skills allowances (기술수당) may be included in ordinary wages.

Example: Calculating Hourly Ordinary Wage
- Monthly base salary KRW 2,500,000 + job-duty allowance KRW 200,000 = total ordinary wage KRW 2,700,000
- Monthly contracted working hours: 209 hours
- Hourly ordinary wage: KRW 2,700,000 ÷ 209 hours ≈ KRW 12,919
- Extended work allowance per hour: KRW 12,919 × 1.5 ≈ KRW 19,378

Note for foreign workers: Your employment contract may specify allowances differently, but the statutory minimum rates above cannot be waived by contract.

Night Work and Holiday Work: Stacked Premiums

If extended work falls during night hours (10:00 p.m. – 6:00 a.m.), an additional night-work premium of 0.5x is added, bringing the total to 2 times the ordinary wage (1 + 0.5 + 0.5). The same stacking applies when work on a holiday exceeds 8 hours (Article 56, Paragraphs 2 and 3 of the Labor Standards Act, 근로기준법 제56조 제2·3항).

Exception: Workplaces with Fewer Than 5 Employees

Under Article 11 of the Labor Standards Act (근로기준법 제11조), workplaces with fewer than 5 full-time employees (상시 근로자 수 5인 미만 사업장) are exempt from Article 56 (extended work, night work, and holiday premium pay). This means employers at such workplaces are not legally required to pay the 1.5x premium for overtime. However, the Minimum Wage Act (최저임금법) applies regardless of workplace size.

What If You're on an All-Inclusive Wage (포괄임금제)?

Even under an all-inclusive wage arrangement (포괄임금제), if the allowance owed for actual extended work hours exceeds the amount already included in the all-inclusive wage, the employer must pay the difference. The Supreme Court has ruled that an all-inclusive wage arrangement is void when it is disadvantageous to the worker or does not reflect actual working conditions (Supreme Court Case No. 2016다9132, 대법원 2016다9132 등).

Check Whether You're Receiving the Correct Overtime Pay

If overtime pay calculations feel complicated, try the salary take-home calculator at Bylaw (workbylaw.com). It lets you calculate allowances based on ordinary wages and confirm your net take-home pay in one step. If you believe you have not received the pay you are owed, Bylaw's complaint drafting feature can also help you prepare a complaint to the Ministry of Employment and Labor (고용노동부).

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