No Overtime Pay? How to Claim Extended Work Allowance in Korea — Foreign Workers' Guide

What Happens If Overtime Pay Is Not Paid?

Have you ever been told "working late is just part of the job"? The law says otherwise. Overtime pay — formally called extended work allowance (연장근로수당) — is a legal right of every worker, and an employer who fails to pay it can face criminal punishment.

Legal Basis for Overtime Pay

Article 56, Paragraph 1 of the Labor Standards Act (근로기준법 제56조 제1항) requires employers to pay at least 50% on top of the ordinary wage (통상임금) for extended work (work exceeding 40 hours per week or 8 hours per day). Night work performed between 10 p.m. and 6 a.m. carries an additional 50% premium under Article 56, Paragraph 3 (근로기준법 제56조 제3항). This means that working late into the night can trigger both the extended-work premium of 50% and the night-work premium of 50% simultaneously.

The 2026 minimum hourly wage is 10,320 won. A worker earning the minimum wage who works one hour of extended work must receive at least 15,480 won (10,320 won × 1.5).

Note for foreign workers: Your employment contract may specify a wage higher than the statutory minimum, but it cannot fall below these legal thresholds.

Are Workplaces with Fewer Than 5 Employees Exempt?

The premium pay provisions do not apply to workplaces with fewer than 5 full-time employees (상시근로자 5인 미만 사업장) under the proviso to Article 11 of the Labor Standards Act (근로기준법 제11조 단서). However, the Minimum Wage Act applies regardless of workplace size, so paying less than 10,320 won per hour is unlawful in any case.

What Penalties Does an Employer Face for Not Paying Overtime?

Failure to pay overtime pay constitutes unpaid wages (임금체불). The employer may be subject to imprisonment of up to 3 years or a fine of up to 30 million won under Article 109, Paragraph 1 of the Labor Standards Act (근로기준법 제109조 제1항). Investigation can proceed even without a formal complaint from the affected worker.

If wages remain unpaid 14 days after the worker's resignation, delay interest of 20% per year accrues under Article 17 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제17조). The longer the arrears continue, the greater the employer's liability.

What to Do If You Have Not Received Overtime Pay

Step 1: Gather Evidence
Save attendance records, work messenger/email logs, pay stubs, and bank transaction records. The more evidence you have, the stronger your case.

Step 2: Make a Written Request to the Employer
A written request — by text message or email — is more useful as evidence later than a verbal request.

Step 3: File a Complaint with the Ministry of Employment and Labor
Submit a wage-arrears complaint (임금체불 진정) at the regional Ministry of Employment and Labor office (고용노동부 지청) with jurisdiction over the workplace. Online filing is available at minwon.moel.go.kr.

Step 4: Use the Substitute Payment (대지급금) System
If the employer is insolvent or unable to pay, the government will pay a portion of the unpaid wages on the employer's behalf under the Wage Claim Guarantee Act (임금채권보장법) through the substitute payment (대지급금) scheme. Applications can be made through the Ministry of Employment and Labor or the Korea Workers' Compensation and Welfare Service (근로복지공단).

A Lump-Sum Wage Agreement Does Not Eliminate Overtime Pay

Some workplaces use a "comprehensive wage agreement" (포괄임금제) as a reason not to pay overtime separately. However, the Supreme Court has held that if the comprehensive wage is significantly less than the actual extended work hours warrant, the employer must pay the difference. Even where a comprehensive wage agreement exists, it is unlawful if actual overtime is not adequately compensated.

Calculate Your Own Overtime Pay

To verify whether your overtime pay has been correctly paid, you first need to determine your ordinary wage. You can use the salary take-home calculator at Workbear (workbear.kr) to easily check your ordinary wage on a monthly or hourly basis and estimate your expected extended work allowance. If you suspect unpaid wages, use the AI search feature to find the legal basis that applies to your specific situation.

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