Overtime Pay in Korea: How to Check Your Allowance in 5 Minutes with a Calculator

Overtime Pay — How Much Are You Legally Entitled To?

If you regularly stay past your scheduled finish time, it is worth checking whether your overtime pay (연장근로수당) is being paid correctly. The colloquial term "야근수당" (night/overtime allowance) is legally called extended work allowance (연장근로수당), and it is clearly regulated under Article 56 of the Labor Standards Act (근로기준법 제56조).

Legal Basis for Overtime Pay

Under Article 56, Paragraph 1 of the Labor Standards Act (근로기준법 제56조 제1항), an employer must pay at least 50% of ordinary wages (통상임금) on top of the regular rate for extended work — that is, work exceeding the statutory limit of 8 hours per day or 40 hours per week. In practice, this means you receive 1.5 times your normal hourly rate.

If the extended work also falls within night-work hours (야간근로) — 10:00 p.m. to 6:00 a.m. — an additional 50% night-work premium is added. When both extended work and night work apply simultaneously, you can receive up to 200% of ordinary wages.

Important — who is covered: Workplaces with fewer than 5 regularly employed workers are exempt from Article 56 of the Labor Standards Act. Employees at such workplaces generally cannot claim the premium allowances.

Overtime Pay Calculation Formula

To calculate overtime pay, you first need your hourly ordinary wage (시간당 통상임금).

Hourly ordinary wage = Monthly ordinary wage ÷ Monthly scheduled work hours

Based on a 40-hour week, monthly scheduled work hours are typically 209 hours (including weekly holiday hours).

For example, if your monthly base pay is ₩3,000,000:
- Hourly ordinary wage = 3,000,000 ÷ 209 ≈ ₩14,354
- 1 hour of extended work = 14,354 × 1.5 ≈ ₩21,531

Note: Your employment contract may specify terms that differ from the statutory minimum — always compare your contract against the legal standard.

What Is Included in Ordinary Wages?

Calculating ordinary wages is tricky because it depends on which allowances must be included. According to the Supreme Court en banc ruling (대법원 전원합의체 판결, 2013다4급), ordinary wages must be wages that are regular (정기성), uniform (일률성), and fixed (고정성).

Companies often define ordinary wages narrowly to reduce overtime pay. It is important to review your pay slip carefully.

What to Do If Overtime Pay Is Not Paid

Failure to pay overtime pay can result in imprisonment of up to 3 years or a fine of up to ₩30,000,000 under Article 109 of the Labor Standards Act (근로기준법 제109조). Wage claims are also subject to a 3-year statute of limitations (소멸시효), meaning you can claim unpaid allowances retroactively for up to 3 years.

If you suspect underpayment:
1. Keep records of your commute times (transit card logs, internal system logs, etc.)
2. Secure your pay slips and employment contract
3. File a complaint with the Ministry of Employment and Labor (고용노동부) or apply to the Labor Relations Commission (노동위원회)

Calculate Your Pay Directly on Bylaw

If you want to check your hourly ordinary wage and verify whether your overtime pay is being calculated correctly, try the Bylaw (바이로) annual salary take-home calculator at workbylaw.com. You can easily find out your after-tax take-home amount as well as your hourly wage benchmark. You can also use the AI search feature to ask questions about allowance calculations tailored to your specific situation.

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