Overtime Pay in Korea: When Does It Start and How Much Can You Receive?

Overtime Pay in Korea: When Exactly Does It Apply?

If you've ever worked late and wondered "how much overtime pay am I actually entitled to tonight?", this guide is for you. Under Korean law, what is commonly called "overtime pay" (야근수당) is legally divided into three distinct types: extended work allowance (연장근로수당), night work allowance (야간근로수당), and holiday work allowance (휴일근로수당). Each has different time thresholds and premium rates.

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

1. Extended Work Allowance – Beyond 8 Hours a Day or 40 Hours a Week

Under Article 56 of the Labor Standards Act (근로기준법 제56조), any work exceeding the statutory limit of 8 hours per day and 40 hours per week must be compensated at 50% or more above the ordinary wage (통상임금).

For example, if you start at 9 a.m. and finish at 6 p.m. (including a 1-hour lunch break), that equals exactly 8 hours. Extended work — and the extended work allowance — begins from 6 p.m. onward.

Important: Workplaces with fewer than 5 employees are exempt from Article 56, meaning there is no legal obligation to pay the premium. Always check how many employees your workplace has.

2. Night Work Allowance – 10 p.m. to 6 a.m.

Night work is defined as work performed between 10 p.m. and 6 a.m. the following day (Article 56, Paragraph 3 of the Labor Standards Act / 근로기준법 제56조 제3항). Working during this period entitles you to an additional 50% of your ordinary wage, regardless of whether the work also qualifies as extended work.

In other words, if you are still working extended hours after 10 p.m., both premiums apply simultaneously:
Extended work premium 50% + Night work premium 50% = 200% of ordinary wage.
The two allowances stack.

3. Holiday Work Allowance – Working on Weekly Holidays or Public Holidays

Working on a weekly holiday (주휴일) as defined under Article 55 of the Labor Standards Act (근로기준법 제55조) — typically Sunday — or on a statutory public holiday (applicable to workplaces with 5 or more employees) triggers the holiday work allowance:

If holiday work continues past 10 p.m., the night work premium is added on top, bringing the maximum rate to 250% of ordinary wage.

4. Does an All-Inclusive Wage Agreement (포괄임금제) Mean You Receive No Allowances?

Many employers cite a "comprehensive/all-inclusive wage agreement (포괄임금제)" as grounds for not paying separate allowances. However, the Supreme Court has ruled that such arrangements are only exceptionally permissible where calculating working hours is genuinely difficult (Supreme Court Decision 2016다9643, etc.). Unilaterally applying a comprehensive wage agreement to office workers — whose hours can be measured — may be ruled invalid.

5. Checking the Impact on Your Take-Home Pay

Overtime allowances are included in taxable income, so your actual take-home amount will differ after tax deductions. You can use Bylaw (workbylaw.com)'s annual salary take-home calculator to instantly check your monthly net pay including extended, night, and holiday work allowances. If you suspect unpaid allowances, also try Bylaw's AI labor law search or complaint drafting feature.

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