Overtime Pay in Korea: Definitions, Calculations & Your Rights as a Foreign Worker

What Is Overtime Pay?

"Overtime pay" (야근수당) is a term used in everyday conversation, but the exact phrase does not appear in the Labor Standards Act (근로기준법). Legally, it is an umbrella term covering extended work allowance (연장근로수당), night work allowance (야간근로수당), and holiday work allowance (휴일근로수당) — collectively referred to as premium wages (가산임금) paid as compensation for work performed outside regular working hours. The statutory basis is Article 56 of the Labor Standards Act (근로기준법 제56조).

Note for foreign workers: Your employment contract may specify terms different from the statutory minimums described below. Always check your contract, but be aware that no contract can fall below the legal floor.

Legal Definitions of the Three Types of Overtime Pay

1. Extended Work Allowance (연장근로수당)

Work exceeding 40 hours per week or 8 hours per day must be compensated at at least 150% of ordinary wages (Article 56, Paragraph 1 / 제56조 제1항). For example, a worker earning an hourly wage of 15,000 won who works 2 hours of extended work in a day must receive: 15,000 won × 1.5 × 2 = 45,000 won for those 2 hours.

2. Night Work Allowance (야간근로수당)

Work performed between 10 p.m. and 6 a.m. is classified as night work, and an additional premium of at least 50% of ordinary wages must be paid for that period (Article 56, Paragraph 3 / 제56조 제3항). Night work premiums apply regardless of whether the work is also extended work — any work during those hours automatically triggers the premium.

3. Holiday Work Allowance (휴일근로수당)

Working on a statutory public holiday or a contractually agreed holiday entitles the worker to a premium of 50% of ordinary wages for the first 8 hours, and 100% for any hours beyond 8 (Article 56, Paragraph 2 / 제56조 제2항). Since 2022, workplaces with 5 or more employees are required to treat official government public holidays as paid statutory holidays.

When Premium Rates Stack

If extended work overlaps with the night-work window (10 p.m. to 6 a.m.), both premium rates apply simultaneously: base wages 100% + extended work premium 50% + night work premium 50% = 200% of ordinary wages. If work is performed on a holiday, at night, and beyond 8 hours, all three premiums may stack — so careful calculation is essential.

Workplaces with Fewer Than 5 Employees: Exemption

Workplaces with fewer than 5 full-time employees are exempt from the premium wage provisions under Article 11 of the Labor Standards Act (근로기준법 제11조). This means there is no legal obligation to pay the 50% premium for extended, night, or holiday work. However, if the employment rules (취업규칙) or employment contract separately stipulate a premium, the employer must honor that agreement.

All-Inclusive Wage Contracts and Overtime Pay

Some workplaces operate under an all-inclusive wage (포괄임금제) arrangement, bundling extended, night, and holiday allowances into the monthly salary. However, the Supreme Court has held that such arrangements are invalid when the all-inclusive wage is significantly insufficient relative to actual working hours or is otherwise disadvantageous to the worker (Supreme Court 2016da9643, etc.). Even under an all-inclusive wage contract, if a calculation of actual extended, night, and holiday work hours reveals a shortfall, the worker may claim the difference.

What to Do If You Have Not Received Overtime Pay

Unpaid overtime pay constitutes wage theft (임금 체불). You may file a complaint with the regional office of the Ministry of Employment and Labor (고용노동부 지청) that has jurisdiction over your workplace, or pursue a civil lawsuit within the 3-year statute of limitations under Article 49 of the Labor Standards Act (근로기준법 제49조). It is important to secure evidence such as attendance records, work messenger logs, and pay stubs.

To calculate exactly how much overtime pay you are owed, try the salary take-home calculator at Byro (workbylaw.com). It lets you check your ordinary hourly wage and extended, night, and holiday premiums all at once. You can also use the AI labor law search feature to quickly find the relevant statutes and court decisions for 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.