Parental Leave Pay in Korea: How Much Can You Receive Based on Ordinary Wages?

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).

The first worry when preparing for parental leave (육아휴직) is usually: "Can I cover my living expenses?" Because parental leave benefits are calculated on the basis of ordinary wages (통상임금), knowing exactly what your ordinary wage is forms the starting point.

What Are Ordinary Wages?

Ordinary wages are defined under Article 6 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제6조) as wages paid regularly and uniformly as consideration for contractual work. Under the current standard as re-established by the Supreme Court en banc ruling of 19 December 2024 (2020다247190·2023다302838), all of the following requirements must be met (the former standard had been set by the 2013 en banc ruling, 2012다89399·2012다94643) for a wage item to be included in ordinary wages:

Regularity (정기성): Paid at fixed intervals.
Uniformity (일률성): Paid to all workers, or to all workers who meet a certain condition.
Consideration for contractual work (소정근로의 대가성): paid in return for work ordinarily provided during contractual hours (the "fixedness" test was abolished in Dec 2024).

Base pay is always included. Position allowances, qualification allowances, meal allowances (when paid as a fixed amount), and commuting allowances (when paid as a fixed amount) are also included if they satisfy the above requirements. By contrast, performance bonuses, incentive bonuses (where payment depends on work results), and overtime allowances are in principle excluded.

Note for foreign workers: Your employment contract may specify allowance structures that differ from the statutory minimum — check each item carefully against the criteria above.

How Parental Leave Benefits Are Calculated

Under Article 70 of the Employment Insurance Act (고용보험법 제70조) and Article 95 of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조), parental leave benefits are calculated as follows:

Parental leave benefits vary by period of leave (Article 95 of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조), as in force since 1 January 2025):

Months 1–3: 100% of ordinary wage (monthly cap KRW 2,500,000)
Months 4–6: 100% of ordinary wage (monthly cap KRW 2,000,000)
Month 7 to the end: 80% of ordinary wage (monthly cap KRW 1,600,000)

The monthly floor is KRW 700,000 for every period.

Example: Ordinary wage of KRW 3,000,000/month → KRW 2,500,000 in months 1–3 (cap applied) · KRW 2,000,000 in months 4–6 (cap applied) · KRW 1,600,000 from month 7 (3,000,000 × 80% = 2,400,000, reduced to the cap)

If your ordinary wage exceeds the cap, the benefit is limited to the cap — meaning the effective replacement rate is lower for higher-income workers.

Special rules: If both parents take parental leave within 18 months of the child's birth, each parent receives 100% of ordinary wage for the first 6 months, with monthly caps raised step by step above the general bands (Article 95-3(1) of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조의3 제1항); the floor remains KRW 700,000 each). A single parent under the Single-Parent Family Support Act has a higher cap of KRW 3,000,000 for the first 3 months (Article 95-3(3) of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조의3 제3항)).

The Deferred Payment System Has Been Abolished

Previously, 25% of parental leave benefits was withheld and paid in a lump sum only after the worker returned and stayed for 6 months or more (the deferred payment (사후지급금) system). That system was abolished when Article 95(4) of the Enforcement Decree of the Employment Insurance Act (고용보험법 시행령 제95조 제4항), which provided for it, was deleted (amended 24 December 2024, in force 1 January 2025). Parental leave benefits are now paid in full each month during the leave, with nothing held back.

Common Mistakes When Calculating Ordinary Wages

Omitting meal or commuting allowances: If these are paid as a fixed monthly amount, they must be included in ordinary wages.
Dividing annual salary by 12 and treating the result as ordinary wages: If your annual salary includes performance bonuses or incentive bonuses, those must be excluded before calculating ordinary wages.
Errors in calculating the hourly ordinary wage: Divide the monthly ordinary wage by the monthly scheduled working hours (typically 209 hours) to obtain the hourly rate.

Check Your Figures with Workbear

If you want to know your ordinary wage and estimated take-home pay, try the Workbear (workbear.kr) salary take-home calculator. Enter each allowance item individually and it will quickly calculate your take-home pay in line with ordinary wage calculation standards — a practical tool for financial planning before parental leave.

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