Overtime Pay in Korea: How to Calculate What You're Owed

What Is Overtime Pay?

What is commonly called "야근수당" (night-work allowance) is, in legal terms, extended work allowance (연장근로수당). Article 56 of the Labor Standards Act (근로기준법 제56조) requires employers to pay at least 50% on top of ordinary wages whenever an employee works beyond the statutory working hours (8 hours per day, 40 hours per week).

In other words, for every hour of overtime worked, you must receive hourly rate × 1.5 — not just your regular hourly rate.

Overtime Pay Calculation Formula

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

Ordinary hourly wage = Monthly ordinary wage ÷ Monthly contractual working hours

Based on a 40-hour workweek, monthly contractual working hours are normally 209 hours (including weekly holiday hours).

For example, if your monthly base salary is ₩3,000,000:
- Ordinary hourly wage = 3,000,000 ÷ 209 ≈ ₩14,354
- 1 hour of overtime pay = 14,354 × 1.5 ≈ ₩21,531

Note: Your employment contract may specify a higher rate than the statutory minimum — always check your contract.

Night and Holiday Work: Stacked Premiums

If overtime falls during night hours (10 p.m. – 6 a.m.), an additional 50% night-work premium is added on top. This means night overtime must be paid at 200% of ordinary wages (base 100% + extended work 50% + night work 50%).

The same stacking principle applies to holiday overtime. Under Article 56, Paragraph 2 of the Labor Standards Act (근로기준법 제56조 제2항), holiday work premiums (50% for the first 8 hours, 100% beyond 8 hours) are applied cumulatively with the extended work premium. The Supreme Court (대법원 2018다253680, etc.) has confirmed that holiday work and extended work premiums must be paid simultaneously.

Workplaces with Fewer Than 5 Employees

Article 56 of the Labor Standards Act — the premium wage provision — does not apply to workplaces with fewer than 5 full-time employees (상시 근로자 수 5인 미만). Accordingly, there is no legal obligation to pay the 50% premium for extended, night, or holiday work at such workplaces. However, the Minimum Wage Act applies regardless of workplace size, so the base hourly wage must still meet the minimum wage.

Comprehensive Wage Agreements Don't Eliminate Your Right to Overtime Pay

Many workers mistakenly believe that signing a comprehensive wage agreement (포괄임금제) means they are not entitled to overtime pay. However, the Ministry of Employment and Labor's administrative interpretation and Supreme Court precedent hold that if the allowance included in the comprehensive wage is significantly less than what is owed for actual overtime hours worked, the employee may claim the difference. Even if your contract states "extended work allowance included," keeping a record of your actual overtime hours allows you to claim any shortfall later.

What to Do If You Haven't Received Overtime Pay

Secure records of your working hours: Collect time-in/time-out records, work messenger logs, email timestamps, and similar evidence.
Check your pay statement: Under Article 48 of the Labor Standards Act (근로기준법 제48조), employers are obligated to provide a pay statement.
File a complaint with the Ministry of Employment and Labor: Unpaid overtime constitutes wage theft (임금체불); you may file a complaint with the competent Regional Employment and Labor Office.
Watch the statute of limitations: The statute of limitations for wage claims is 3 years (Article 49 of the Labor Standards Act, 근로기준법 제49조).

Calculate Your Overtime Pay with Bylaw

If you want to calculate your ordinary hourly wage and overtime pay directly from your monthly salary, use the Bylaw (workbylaw.com) salary take-home calculator. Enter your base pay and allowances to instantly see your ordinary-wage hourly rate and estimated take-home amount. If you suspect unpaid overtime, you can also use the AI search feature to quickly find relevant court precedents and administrative interpretations.

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