Parental Leave Pay in Korea: How Much Can You Receive Based on Ordinary Wages?

The first worry when preparing for parental leave (육아휴직) is usually: "Can I cover my living expenses?" Because parental leave benefits are calculated on the basis of ordinary wages (통상임금), knowing exactly what your ordinary wage is forms the starting point.

What Are Ordinary Wages?

Ordinary wages are defined under Article 6 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제6조) as wages paid regularly, uniformly, and on a fixed basis. According to the standard established by the Supreme Court en banc ruling (2013다4급, etc.), all of the following requirements must be met for a wage item to be included in ordinary wages:

Regularity (정기성): Paid at fixed intervals.
Uniformity (일률성): Paid to all workers, or to all workers who meet a certain condition.
Fixed nature (고정성): A predetermined amount unrelated to work performance or results.

Base pay is always included. Position allowances, qualification allowances, meal allowances (when paid as a fixed amount), and commuting allowances (when paid as a fixed amount) are also included if they satisfy the above requirements. By contrast, performance bonuses, incentive bonuses (where payment depends on work results), and overtime allowances are in principle excluded.

Note for foreign workers: Your employment contract may specify allowance structures that differ from the statutory minimum — check each item carefully against the criteria above.

How Parental Leave Benefits Are Calculated

Under Article 70 of the Employment Insurance Act (고용보험법 제70조) and Article 95 of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조), parental leave benefits are calculated as follows:

80% of the ordinary wage as of the start date of parental leave, subject to an upper limit and a lower limit.

Example: Ordinary wage of KRW 3,000,000/month → Parental leave benefit = KRW 3,000,000 × 80% = KRW 2,400,000

However, the benefit is paid within the upper and lower limits announced by the Ministry of Employment and Labor. For the current 2026 figures, please check the Employment Insurance portal (ei.go.kr) or the relevant Ministry of Employment and Labor notice. If your ordinary wage exceeds the upper limit, the benefit is capped at that upper limit — meaning the effective replacement rate is lower for higher-income workers.

Don't Forget the Deferred Payment System

A portion (25%) of parental leave benefits is paid as a deferred payment (사후지급금) — a lump sum paid after you return to work and remain employed for at least 6 months. In other words, during the leave period you receive an amount equivalent to 75% of your ordinary wage each month, and the remaining 25% is settled after you return. If you do not return to work, or if you resign after fewer than 6 months following your return, you will not receive the deferred payment.

Common Mistakes When Calculating Ordinary Wages

Omitting meal or commuting allowances: If these are paid as a fixed monthly amount, they must be included in ordinary wages.
Dividing annual salary by 12 and treating the result as ordinary wages: If your annual salary includes performance bonuses or incentive bonuses, those must be excluded before calculating ordinary wages.
Errors in calculating the hourly ordinary wage: Divide the monthly ordinary wage by the monthly scheduled working hours (typically 209 hours) to obtain the hourly rate.

Check Your Figures with Bylaw

If you want to know your ordinary wage and estimated take-home pay, try the Bylaw (workbylaw.com) salary take-home calculator. Enter each allowance item individually and it will quickly calculate your take-home pay in line with ordinary wage calculation standards — a practical tool for financial planning before parental leave.

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