Severance

When you leave the GMOE, you will be entitled to severance pay. This is provided you have completed a minimum of 365 days of employment (i.e. if you break your contract before completing at least one year, you are not entitled to severance pay).

During the non-renewal meeting with the GET Program Manager, you will sign documents related to severance and provide banking details. Severance can not be deposited into an international account. You will receive your severance within 14 days after the completion of your contract.

How Severance is Calculated

Severance is roughly equal to one month's income per year worked, calculated using the average of regular income received in the last three months of employment. Regular income is defined as income you can reasonably expect to receive every month in fixed amounts. In additional to monthly wages, other forms of regular income are:

• rural allowances

• multiple workplaces allowances

• housing allowances

Contract completion bonuses, renewal bonuses, settlement allowances, lecturer fees, and overtime pay are not included as the amounts and payment schedules vary.

Years are calculated as 365 days. This means unpaid leave can affect both the average monthly wage calculation and your total number of years worked. For instance, 7 unpaid days taken over the course of two years equals 1.98 years worked. If you take a unpaid leave during the last three months of employment, this will affect your monthly average wage calculation.

Severance is taxed before you receive it. Most teachers can expect an effective tax rate between 1.5% to 3%. The longer you have been with one employer, the higher the tax rate will be. There are multiple tables that define how much you can deduct, what rates to apply, etc. To get a better idea of how this is calculated, search the NTS website for "퇴직소득세 계산."