No Overtime Pay at Your Company? Korea's Overtime Allowance Rules Fully Explained

Is Overtime Pay Money You're Supposed to Receive?

You stay past your scheduled finish time, yet no allowance appears on your payslip. This is a reality many workers in Korea face. So is overtime pay (야근수당) something an employer is legally required to pay?

The short answer is: in principle, yes.

Overtime Allowance Under the Labor Standards Act

Article 56 of the Labor Standards Act (근로기준법 제56조) explicitly requires employers to pay at least 50% on top of ordinary wages (통상임금) for extended work (연장근로) — that is, work exceeding the statutory limit of 8 hours per day or 40 hours per week. The same 50% premium obligation applies to night work (야간근로, 10 p.m.–6 a.m.) and holiday work (휴일근로).

This provision is a mandatory rule (강행규정). Even if a worker consents or the company's work rules state "no allowance," such provisions have no legal effect.

Note for foreign workers: Your employment contract may specify terms different from the statutory minimum, but those terms cannot fall below what the law guarantees.

Can the All-Inclusive Wage System Exempt a Company from Paying Overtime?

Many companies use an all-inclusive wage system (포괄임금제), claiming that overtime pay is already built into the monthly salary. This arrangement is not illegal in itself. However, the Supreme Court has ruled that an all-inclusive wage agreement is valid only when the following conditions are met (Supreme Court Decision 2016다48785, etc.):

The nature of the work must make it difficult to calculate working hours.
The all-inclusive wage agreement must not be disadvantageous to the worker.
If the allowance included is significantly less than what the actual extended hours would require, the agreement may be void.

In other words, for office workers whose clock-in and clock-out times are clearly recorded, using an all-inclusive wage system to pay no overtime at all is highly likely to be ruled invalid by a court.

Are Workplaces with Fewer Than 5 Employees Exempt?

Article 56 of the Labor Standards Act (extended work, night work, and holiday premium allowances) does not apply to workplaces with fewer than 5 full-time employees (상시근로자 5인 미만 사업장). Accordingly, claiming the statutory premium is difficult in such workplaces. However, if the employment contract explicitly states that allowances will be paid, you may still claim them as a breach of contract.

What Should You Do If You Haven't Received Overtime Pay?

1. Gather evidence first.
Collect commute records, work messenger logs, email send times, and internal system access logs.

2. Submit a written payment request to the company.
Verbal requests leave no trace. Send your request by email or text message and keep a record.

3. You can file a complaint with the Ministry of Employment and Labor (고용노동부).
Unpaid wages (임금체불) constitute a criminal offense under Article 109 of the Labor Standards Act (근로기준법 제109조), punishable by up to 3 years' imprisonment or a fine of up to 30 million won. You can file a complaint through the Ministry of Employment and Labor Customer Consultation Center (dial 1350, no area code needed) or via the online civil petition system.

4. The statute of limitations is 3 years.
The statute of limitations on wage claims is 3 years under Article 49 of the Labor Standards Act (근로기준법 제49조), meaning you can claim unpaid allowances for the most recent 3 years.

Check and Take Action Right Away with Bylaw

If you want to know whether your annual salary properly reflects overtime allowances, you can calculate your ordinary wages and premium pay directly using the Bylaw (바이로) take-home salary calculator at workbylaw.com. You can also use the AI search feature to quickly find legal interpretations suited to your situation, and use the complaint-drafting assistant to easily prepare documents for submission to the Ministry of Employment and Labor.

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