Understanding Ordinary Wages in Korea: What Foreign Workers Need to Know
What Are Ordinary Wages (통상임금)?
Current standard (July 2026) — the Supreme Court en banc decision of 19 December 2024 (2020다247190, 2023다302838) abolished the "fixedness" requirement for ordinary wage. The test is now consideration for contractual work, regularity and uniformity, and regular bonuses carrying a continued-employment or minimum-workdays condition do qualify. Any "fixedness" discussion below reflects the former 2013 standard. The new standard applies, in principle, to ordinary-wage calculations made on or after the ruling date (19 December 2024).
Ordinary wages (통상임금) form the foundation for calculating your overtime pay, night work allowances, holiday pay, annual leave pay, and severance pay in Korea. Understanding what counts as ordinary wages can significantly impact your total compensation.
The Three Key Requirements
Korean courts define ordinary wages as payments that are:
- Regular (정기성): Paid at consistent intervals
- Uniform (일률성): Paid equally to all workers or those meeting specific conditions
- Consideration for contractual work (소정근로의 대가성): paid in return for work ordinarily provided during contractual hours (the "fixedness" test was abolished in Dec 2024).
Common Components for Foreign Workers
Meal Allowances: If your employer pays a fixed monthly meal allowance to all employees (not actual meal reimbursements), this typically counts as ordinary wages.
Fixed Bonuses: Regular bonuses like Lunar New Year or Chuseok bonuses usually qualify as ordinary wages. Recent court decisions include bonuses even with "employment on payment date" conditions.
Performance Bonuses: Variable performance pay generally doesn't count, but any guaranteed minimum portion may be included in ordinary wages.
Housing Allowances: Fixed monthly housing allowances typically count as ordinary wages.
Why This Matters for Your Pay
Your overtime rate is calculated as: ordinary wages ÷ 209 hours × 1.5. Higher ordinary wages mean higher overtime pay, night work allowances, and severance pay (퇴직금).
Important Notes for Foreign Workers
- Contract vs. Law: Your employment contract may specify different wage structures, especially in international schools or foreign companies.
- Documentation: Keep detailed records of all salary components and pay stubs.
- Language Support: You can request interpreter assistance when filing complaints with labor authorities.
- Professional Help: Consider consulting a certified labor attorney (노무사) if you suspect wage calculation errors.
Many foreign workers discover they're entitled to additional compensation when ordinary wages are properly calculated.
*This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.