Overtime Pay in Korea: Complete Guide to When and How Much You Can Receive

Overtime Pay in Korea: Complete Guide to When and How Much You Can Receive

What Is Overtime Pay?

What is commonly called "야근수당" (overtime/night-work pay) is legally referred to as extended work allowance (연장근로수당). Article 56 of the Labor Standards Act (근로기준법 제56조) requires employers to pay a premium of at least 50% on top of ordinary wages (통상임금) whenever workers are made to work beyond the statutory working hours.

When Does Overtime Pay Apply?

1. Exceeding Statutory Working Hours

Under Article 50 of the Labor Standards Act (근로기준법 제50조), the statutory working hours are 8 hours per day and 40 hours per week. The moment these hours are exceeded, extended work is established and the premium wage obligation arises.

Note for foreign workers: Even if your employment contract does not mention overtime pay, the statutory minimum applies to workplaces with 5 or more employees. Contractual terms cannot fall below this statutory floor.

2. Night Work Premium

Working between 10 p.m. and 6 a.m. constitutes night work (야간근로), and an additional premium of 50% of ordinary wages must be paid separately for hours worked during this period. If extended work and night work overlap, each 50% premium applies separately, for a combined total of 100%.

3. Holiday Work Premium

Working on a holiday (a statutory public holiday or a contractually agreed holiday) attracts a premium of 50% for the first 8 hours and 100% for any hours beyond 8. If holiday work also falls within night-work hours, the additional night-work premium applies on top.

How to Calculate Overtime Pay

The ordinary wages (통상임금) used as the basis for overtime pay refer to wages paid regularly, uniformly, and on a fixed basis (Supreme Court en banc decision 2013다4969 (대법원 2013다4969 전원합의체 판결)). In addition to base pay, fixed allowances such as position allowances and qualification allowances may also be included.

Calculation Formula

Hourly ordinary wage = Monthly ordinary wage ÷ Monthly scheduled working hours (typically 209 hours)
Extended work allowance = Hourly ordinary wage × 1.5 × Number of extended hours worked

Example: A worker with a monthly ordinary wage of KRW 3,000,000 who works 5 hours of overtime per week:
- Hourly ordinary wage: 3,000,000 ÷ 209 ≈ KRW 14,354
- Weekly overtime pay: 14,354 × 1.5 × 5 ≈ KRW 107,655

Comprehensive Wage Agreements and Overtime Pay

Some workplaces operate a comprehensive wage system (포괄임금제), which bundles extended, night, and holiday work allowances into the monthly salary. However, the Supreme Court has ruled that a comprehensive wage agreement may be void where it is possible to calculate actual working hours (Supreme Court decision 2016다48785 (대법원 2016다48785)). If the amount paid under a comprehensive wage arrangement is less than the premium wages actually owed, the worker may claim the difference as additional wages.

What If You Haven't Received Overtime Pay?

If an employer fails to pay overtime pay, they may be subject to imprisonment of up to 3 years or a fine of up to KRW 30 million under Article 109 of the Labor Standards Act (근로기준법 제109조). The statute of limitations on wage claims is 3 years (Article 49 of the Labor Standards Act (근로기준법 제49조)), meaning claims can be filed within 3 years even after leaving the job.

Unpaid overtime pay can be claimed by filing a complaint (진정) with the competent Regional Employment and Labor Office, or through civil litigation.

Check Your Overtime Pay with Bylaw

If calculating your exact overtime pay feels complicated, try the salary take-home calculator at Bylaw (workbylaw.com). It lets you easily compute extended, night, and holiday work allowances based on your ordinary wages. The AI search feature also provides instant interpretation of relevant laws for your specific situation. If you have been unfairly denied allowances, the complaint drafting feature is available as well.

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