Unpaid Overtime Pay in Korea: How to Claim It and the Legal Basis

Overtime Pay: You Are Legally Entitled to It

If you worked past your scheduled finish time and received no allowance, this is not merely a company custom — it is a violation of the Labor Standards Act (근로기준법). The official term for overtime pay is extended work allowance (연장근로수당). Under Article 56 of the Labor Standards Act (근로기준법 제56조), work exceeding 40 hours per week (8 hours per day) must be compensated at 50% or more above the ordinary wage (통상임금). If the overtime also falls between 10 p.m. and 6 a.m., the night-work premium (50%) applies on top of that.

Note: Your employment contract may specify terms different from the statutory minimum, but the statutory floor always applies.

How to Calculate Overtime Pay

Extended work allowance is calculated based on the ordinary wage (통상임금). Ordinary wage includes the base salary plus any fixed, uniform allowances (position allowances, qualification allowances, etc.) as defined in Article 6 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제6조).

Extended Work Allowance = Ordinary Hourly Wage × Extended Hours Worked × 1.5

For example, if your ordinary hourly wage is ₩15,000 and you worked 10 hours of overtime this month:
₩15,000 × 10 hours × 1.5 = ₩225,000 in additional pay owed to you.

What to Do When Overtime Pay Is Not Paid

Step 1 — Gather Evidence

To claim the allowance, you must prove that extended work actually occurred. Secure the following materials in advance:

• Commute records (electronic access logs, transit card history)
• Work-instruction emails and in-house messenger screenshots
• Overtime meal receipts, taxi fare claim records
• Pay stubs and employment contract

Step 2 — Submit a Written Demand to the Employer

Send a formal request for payment of the unpaid allowance via certified mail (내용증명) or email. Resolving the matter at this stage is the fastest option.

Step 3 — File a Complaint with the Ministry of Employment and Labor (고용노동부 진정)

If the employer does not comply, you can file a wage-withholding complaint (임금 체불 진정) with the regional office of the Ministry of Employment and Labor (고용노동부 지청) that has jurisdiction over the workplace. Once the complaint is accepted, a labor inspector will begin an investigation; if the employer fails to remedy the situation, the case is referred to the prosecutor's office. Wage withholding is a criminal offense punishable by imprisonment of up to 3 years or a fine of up to ₩30 million under Article 109 of the Labor Standards Act (근로기준법 제109조).

Step 4 — Civil Lawsuit or Small Claims Adjudication

If the unpaid amount is large or the criminal process does not resolve the matter, you can obtain a swift judgment through a civil small claims adjudication (소액심판) for amounts of ₩30 million or less.

Do Not Miss the Statute of Limitations

The statute of limitations for wage claims is 3 years under Article 49 of the Labor Standards Act (근로기준법 제49조). Whether you are still employed or have already left, you must file your claim within 3 years from the last wage payment date. Evidence also disappears over time, so acting quickly is essential.

Check Your Entitlement on Byro

If you are unsure of your exact ordinary hourly wage or how much extended work allowance you are owed, use the annual take-home pay calculator on Byro (workbylaw.com). Enter your base salary and allowance items and it will automatically calculate your allowance based on the ordinary wage standard. You can also use the AI labor law search to instantly find the relevant provisions and precedents for your situation, and 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.