Requirements of retirement pay
Requirements of retirement pay
- Retirement pay shall be paid to workers who have worked for more than one year. (Article 8 (1) of Act on Guarantee of Employees' Retirement Benefits)
Calculation of retirement pay
Calculation of retirement pay
- The employer shall pay an average wage of at least 30 days for one year of work to the employee who retires as a retirement pay. (Article 8 (1) of Act on Guarantee of Employees' Retirement Benefits)
Payment of retirement
Payment of retirement
- If an employee retires, the employer shall pay the worker retirement allowance within 14 days from the date the reason for such payment occurs. (Body part of Article 9 of Act on Guarantee of Employees' Retirement Benefits)
- However, in special circumstances, the payment date may be extended by agreement between the parties (workers and employers). (Proviso to Article 9 of Act on Guarantee of Employees' Retirement Benefits)
※ Those who violate the Article 9 of Act on Guarantee of Employees' Retirement Benefits and do not pay the retirement pay shall be sentenced to up to three years in prison or fined up to 20 million won. (Article 44 (1) of Act on Guarantee of Employees' Retirement Benefits)
Prohibition of seizure of retirement pay
Prohibition of seizure of retirement pay
- Retirement payments, and other half the amount of salaries with similar properties, cannot be seized. (Subparagraph 4 of Article 246 (1) of the Civil Service Execution Act)
Time limitation of right to claim retirement pay
Time limitation of right to claim retirement pay
- Right to receive retirement pay shall expire if they are not exercised for three years. (Article 10 of Act on Guarantee of Employees' Retirement Benefits)
Prior payment of retirement claim
Prior payment of retirement claim
- Retirement claim shall be paid in preference in the following order (Article 12 (1)·(2) of Act on Guarantee of Employees' Retirement Benefits) :
1. Wages for the final three months, accident compensation, and retirement pay for the final three years
2. Tax or utility charges that take precedence over pledge or mortgage
3. Claim security on the employer's property by pledge and mortgage.
4. Claim security on wages, disaster compensation, retirement pay, and other labor relations
5. Tax or utility charges and other claims