Weekly Holiday Allowance Included in Hourly Wage: Complete Calculation Guide for Foreign Workers in Korea

What Is an Hourly Wage That Includes Weekly Holiday Allowance?

Part-time and short-hour workers in Korea often see job postings that say "hourly wage ₩10,000 (weekly holiday allowance included / 주휴수당 포함)." This phrasing means the employer will not pay weekly holiday allowance (주휴수당) separately but will fold it into the stated hourly rate. However, many workers do not know exactly whether this arrangement is legal or whether the amount they actually receive meets the minimum wage.

What Is Weekly Holiday Allowance (주휴수당)?

Article 55 of the Labor Standards Act (근로기준법 제55조) requires employers to grant workers who have attended all scheduled workdays in a week one paid day off per week (averaging one day's wages). The wage paid for that paid holiday is the weekly holiday allowance.

There are two conditions for entitlement:
1. Scheduled weekly working hours of 15 hours or more
2. Perfect attendance on all scheduled workdays

Workers whose scheduled hours are fewer than 15 hours per week (ultra-short-hour workers) are not entitled to weekly holiday allowance under Article 18, Paragraph 3 of the Labor Standards Act (근로기준법 제18조 제3항).

Formula for Calculating the Real Hourly Wage When Weekly Holiday Allowance Is Included

To back-calculate the actual hourly wage from a rate that already includes weekly holiday allowance, use the following formula:

Real hourly wage = Stated hourly wage (inclusive) ÷ 1.2

Why divide by 1.2? On a 5-day workweek basis, one weekly holiday day is added, meaning the worker effectively receives 6 days' worth of wages for 5 days of work — i.e., 20% extra on top of actual hours worked.

Example
- Posted hourly wage: ₩12,000 (weekly holiday allowance included)
- Real hourly wage: ₩12,000 ÷ 1.2 = ₩10,000

Conversely, to find the all-inclusive rate from a base hourly wage, calculate hourly wage × 1.2.

Relationship with the 2026 Minimum Wage

The 2026 minimum wage is ₩10,030 per hour. When an employer presents a wage that already includes weekly holiday allowance, the back-calculated real hourly wage must be ₩10,030 or more to comply with the Minimum Wage Act (최저임금법).

Therefore, the minimum amount that can legally be posted as an "inclusive" rate is ₩10,030 × 1.2 = ₩12,036. Advertising any amount below this as "weekly holiday allowance included" may constitute a violation of the Minimum Wage Act.

Note for foreign workers: Your employment contract may specify terms that differ from the statutory minimum, but no contract can lawfully fall below the minimum wage threshold.

Is a "Weekly Holiday Allowance Included" Agreement Valid?

According to a Ministry of Employment and Labor administrative interpretation (근로기준정책과-2855, 2018), an agreement to bundle weekly holiday allowance into the hourly rate is valid when the parties' agreement is clear and the real hourly wage meets or exceeds the minimum wage. However, the terms must be explicitly stated in the written employment contract (근로계약서), and if the real hourly wage falls short of the minimum wage, the employer must pay the shortfall as additional wages.

Practical Checklist

Calculate It Instantly on Bylaw (바이로)

If you want to verify whether your inclusive hourly wage is correctly set, use the weekly holiday allowance calculator on Bylaw (workbylaw.com). Enter your working hours and hourly wage to instantly see the weekly holiday allowance amount and your real hourly wage. The employment contract review feature also lets you check whether a "weekly holiday allowance included" clause has been written lawfully.

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