Korean Delayed Wage Interest Calculator
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If your average monthly wage during the unpaid period was under 4M KRW the Korea Legal Aid Corporation (KLAC) provides free legal representation. Verify eligibility on their website.
Legal hotline: 132 (toll-free, KR only)
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What is the Korean Unpaid Wage Interest Calculator?
The Korean Unpaid Wage Interest Calculator automatically computes delay interest when an employer fails to pay wages or severance within the legal deadline. Under Article 37 of the Labor Standards Act, 20% annual interest applies after 14 days post-resignation or for wages with regular paydays on or after October 23 2025. Useful for unpaid wages or severance after resignation, delayed wages during employment, lawsuit preparation, and pre-consultation estimates with a labor attorney.
Interest Rate Criteria Under Korean Law
General Case
Legal Interest Rate 6% per year
If there is no separate agreement, the statutory commercial interest rate of 6% per year applies under Korean law (per the Act on Special Cases Concerning Expedition of Litigation).
When Payment Is Delayed
Delay Interest 20% per year
Under Article 37 of Korea's Labor Standards Act, the higher rate of 20% per year applies from the day after 14 days have passed since the payment obligation arose.
Late Interest Rates at a Glance
Different rates apply depending on the type of payment owed. Find your situation at a glance.
| Situation | Rate | Period | Legal Basis |
|---|---|---|---|
| Wages delayed during employment | 20%/yr | Day after payday → payment date | Labor Standards Act Art. 37 |
| Unpaid > 14 days post-resignation | 20%/yr | 15th day post-resignation → payment date | Labor Standards Act Art. 37 |
| DC retirement pension (within 14 days) | 10%/yr | Contribution due date → 14 days post-resignation | Retirement Benefits Act Art. 20 |
| DC pension (after 14 days) | 20%/yr | 15th day post-resignation → final payment | Retirement Benefits Act Art. 20 |
| Upon winning lawsuit | 12%/yr | Day after complaint served → satisfaction date | Litigation Special Act Art. 3 |
Detailed Criteria by Wage Type
1. Monthly Wages During Employment
When regular payday is on or before Oct 22 2025
- Day after regular payday ~ payment date: 6%/yr per Commercial Act Art. 54
- Upon winning a lawsuit, 12%/yr from the day after complaint is served
When regular payday is on or after Oct 23 2025
- Day after regular payday ~ payment date: 20%/yr per Labor Standards Act Art. 37
There is no penalty provision for non-payment of delay interest, so it may not be resolved through a Labor Ministry complaint alone.
2. Severance, DB Pension & Unpaid Wages at Retirement
- From the retirement date to 14 days afterward: 6%/yr per Commercial Act Art. 54
- From the 15th day after retirement ~ payment date: 20%/yr per Labor Standards Act Art. 37
There is no penalty provision for non-payment of delay interest, so it may not be resolved through a Labor Ministry complaint alone.
3. DC-type Retirement Pension
- Regular contribution due date ~ 14 days after retirement: 10%/yr per Retirement Benefits Act Art. 20
- From the 15th day after retirement ~ final payment date: 20%/yr per Retirement Benefits Act Art. 20
Non-payment of delay interest is subject to criminal penalties of up to 3 years imprisonment or 30M KRW fine, and can be resolved through a Labor Ministry complaint.
Exceptions to Delay Interest Under Korean Law
The 20% annual delay interest may be waived (reduced to 6%) in the following cases under Korean law: unavoidable circumstances such as natural disasters or legislative changes; employer insolvency or rehabilitation; legal disputes over the existence or scope of the wage claim. Even when exceptions apply, non-payment of the principal remains unlawful and workers can exercise their rights through a Labor Office complaint or civil lawsuit.
4 Ways to File for Unpaid Wages
The Labor Office orders payment of unpaid principal. To recover delay interest you need civil litigation or free legal aid. Choose the path that fits your situation.
| Method | Cost | Time | Coverage | When to use |
|---|---|---|---|---|
| Online complaint (labor.moel.go.kr) | Free | 1–1.5 months | Unpaid principal | Simplest starting point |
| Visit Labor Office in person | Free | 1–1.5 months | Unpaid principal | When evidence is voluminous or case is complex |
| Free legal aid (KLAC) | Free | 2–6 months | Principal + delay interest | Recommended if avg monthly wage under 4M KRW |
| Civil lawsuit (with attorney) | Court fee + attorney fee | 6+ months | Principal + interest + court costs | For large claims or complex legal issues |
Verify eligibility and procedures on the official sites. Labor Portal: labor.moel.go.kr / Legal Aid: klac.or.kr
Required Documents Checklist
- Employment contract
- Pay stubs (last 3 months)
- Bank statements (proof of non-payment)
- Attendance records (if claiming overtime)