Overtime Pay in Korea: Is Working Late Without Extra Pay Legal? A Complete Guide for Foreign Workers

Is Working Overtime Without Overtime Pay Legal in Korea?

Many workers stay past their scheduled finish time — yet when the pay stub arrives, there is no overtime pay (야근수당) in sight. A lot of people simply accept this as normal, but it may constitute a clear violation of the Labor Standards Act (근로기준법).

What the Law Says About Extended Work Allowances

Article 56 of the Labor Standards Act (근로기준법 제56조) requires employers to pay a 50% premium on top of ordinary wages (통상임금) for extended work — that is, work exceeding the statutory limit of 40 hours per week or 8 hours per day. For night work (야간근로) between 10 p.m. and 6 a.m., an additional 50% premium applies. When extended work and night work overlap, the worker is entitled to 200% of ordinary wages.

This provision applies to workplaces with 5 or more regular employees. Workplaces with fewer than 5 employees are not obligated to pay the premium; however, if the employment contract or work rules stipulate payment of such allowances, those terms take precedence.

Note for foreign workers: Your employment contract may set terms above the statutory minimum — always check your contract alongside the statutory baseline.

"We Use a Lump-Sum Wage Contract, So It's Fine" — Should You Believe That?

The most common justification for withholding overtime pay is the lump-sum wage contract (포괄임금제) — an arrangement where extended, night, and holiday work allowances are bundled into the monthly salary in advance. The problem is that this system is frequently abused.

The Supreme Court has held that a lump-sum wage contract is valid only when all of the following conditions are met: ① the nature of the work makes it genuinely difficult to calculate working hours; ② the arrangement is not disadvantageous to the worker; and ③ it is reasonable in light of all the circumstances (Supreme Court 2016Da48785, etc.). Applying a lump-sum wage contract to ordinary office workers whose attendance is recorded — and then failing to pay actual extended work allowances — is unlawful.

Even if your contract contains the words "lump-sum wage," if your actual overtime hours exceed the scope covered by the lump sum, you may claim the difference as additional pay.

What to Do If You Have Not Been Paid Overtime

Step 1: Gather Evidence
Collect materials that prove your actual working hours — attendance records, work messenger logs, email timestamps, and system access logs.

Step 2: Request Payment from Your Employer First
Send a written request (e.g., a certified letter) asking for payment of the unpaid allowances. Many cases are resolved at this stage.

Step 3: File a Complaint with the Ministry of Employment and Labor
If the matter is not resolved, you may file a wage-arrears complaint (임금체불 진정) with the competent regional office of the Ministry of Employment and Labor. Under Article 109 of the Labor Standards Act (근로기준법 제109조), the employer may face up to 3 years of imprisonment or a fine of up to 30 million won. Unpaid allowances can be claimed retroactively for up to 3 years (3-year statute of limitations on wage claims under Article 49 of the Labor Standards Act, 근로기준법 제49조).

Calculate Your Overtime Pay

If you are unsure how much extended work allowance you are owed, try the salary take-home calculator at Byro (workbylaw.com). It lets you calculate allowances based on your ordinary wage and simulate your actual take-home pay all in one place. You can also use the AI labor-law search feature to quickly find legal interpretations relevant to your situation, and the complaint-drafting feature 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.