Do Workplaces with Fewer Than 5 Employees Have to Pay Weekly Holiday Allowance? 2026 Complete Guide

Do Workplaces with Fewer Than 5 Employees Have to Pay Weekly Holiday Allowance?

A question frequently asked by people working at convenience stores, cafés, and small restaurants: "Our shop has only 4 employees — can I still receive weekly holiday allowance (주휴수당)?" The short answer is yes, you can.

Note for foreign workers: The statutory entitlements described below are the legal minimum. Your employment contract may provide more favorable terms, but it cannot provide less.

Weekly Holiday Allowance Applies Regardless of Workplace Size

Article 55 of the Labor Standards Act (근로기준법 제55조) states: "An employer shall guarantee a worker at least one paid holiday per week on average." This provision contains no exemption based on the number of workers ordinarily employed. In other words, the obligation to pay weekly holiday allowance is identical whether a workplace has 1 employee or 100.

Under Article 28 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제28조), there is only one condition for weekly holiday allowance: scheduled weekly working hours must be 15 hours or more. If this condition is met, workers at workplaces with fewer than 5 employees are fully entitled to weekly holiday allowance.

What Does NOT Apply to Workplaces with Fewer Than 5 Employees

Many people mistakenly believe that "the Labor Standards Act does not apply to workplaces with fewer than 5 employees." More precisely, only certain provisions are excluded.

Note: In Supreme Court case 2023da275998, the court held that workers who did not actually work on a holiday are not counted when determining whether a workplace ordinarily employs 5 or more workers. Determining workplace size is itself not straightforward, so caution is required.

How to Calculate Weekly Holiday Allowance — 2026 Standards

Weekly holiday allowance is calculated by paying the equivalent of one day's scheduled working hours at the worker's hourly wage.

Formula: Scheduled daily working hours × Hourly wage

The 2026 minimum wage is 10,320 won per hour. For a worker on an 8-hour day, 5-day week schedule, the weekly holiday allowance is:

8 hours × 10,320 won = 82,560 won per week

For monthly-salaried workers, the standard monthly calculation is based on 209 hours per month (for a 40-hour week), which already includes weekly holiday hours. Receiving 2,156,880 won or more per month means weekly holiday allowance is already included.

Penalties for Non-Payment of Weekly Holiday Allowance

If an employer fails to pay weekly holiday allowance, they may face imprisonment of up to 3 years or a fine of up to 30 million won under Article 109 of the Labor Standards Act (근로기준법 제109조). In addition, unpaid wages accrue delayed interest at 20% per annum under Article 17 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제17조), applied from 14 days after the employment relationship ends.

An employer's claim that "there is no weekly holiday allowance because we have fewer than 5 employees" is legally incorrect. If you face this situation, contact the Ministry of Employment and Labor Customer Consultation Center (☎1350) or file a complaint with the competent Regional Employment and Labor Office.

Calculate Your Allowance with Workbear

To find out exactly how much weekly holiday allowance you should be receiving, use the weekly holiday allowance calculator at workbear.kr. Simply enter your working hours and hourly wage for an automatic calculation. If your employer is withholding weekly holiday allowance, the site also offers AI-assisted search and complaint-drafting features.

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

Frequently Asked Questions

If I work fewer than 15 hours a week at a workplace with fewer than 5 employees, can I still receive weekly holiday allowance?

No. Weekly holiday allowance under Article 55 of the Labor Standards Act 근로기준법 제55조 applies only to workers whose scheduled weekly working hours are 15 hours or more. Even at a workplace with fewer than 5 employees, you are entitled to weekly holiday allowance if you work 15 hours or more per week. Conversely, if you work fewer than 15 hours per week, weekly holiday allowance does not arise regardless of workplace size.

Which provisions of the Labor Standards Act do not apply to workplaces with fewer than 5 employees?

Premium wages for overtime, night, and holiday work under Article 56 of the Labor Standards Act 근로기준법 제56조 , advance notice of dismissal under Article 26 of the Labor Standards Act 근로기준법 제26조 , and the right to apply for relief against unfair dismissal under Article 23 of the Labor Standards Act 근로기준법 제23조 apply only to workplaces that ordinarily employ 5 or more workers. By contrast, weekly holiday allowance Article 55 of the Labor Standards Act , the minimum wage, and severance pay under the Act on the Guarantee of Workers' Retirement Benefits 근로자퇴직급여 보장법 apply regardless of workplace size.

What should I do if my employer says 'We have fewer than 5 employees, so there is no weekly holiday allowance'?

That statement is incorrect. The obligation to pay weekly holiday allowance exists regardless of workplace size. Failure to pay may result in imprisonment of up to 3 years or a fine of up to 30 million won under Article 109 of the Labor Standards Act 근로기준법 제109조 . You can report the matter to the Ministry of Employment and Labor Customer Consultation Center ☎1350 or file a complaint with the competent Regional Employment and Labor Office.

How is the ordinary number of workers (whether a workplace has 5 or more employees) determined?

In Supreme Court case 2023da275998, the court held that workers who did not actually work on a holiday are not counted when determining whether a workplace ordinarily employs 5 or more workers. The ordinary number of workers is assessed based on the number of workers customarily employed throughout the overall operation of the business, not at a specific point in time.