Paid Time Off

South Korea PTO Compliance: A Guide for Employers

Paid Time Off in South Korea is regulated by the Labor Standards Act, which outlines the minimum paid leave entitlements and conditions for both full-time and part-time workers. Understanding these requirements is key to ensuring legal compliance and maintaining a transparent and productive workplace.

South Korea pto compliance

Understanding PTO Requirements in South Korea

Explore the legal framework that defines leave policies in South Korea.

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Statutory Vacation Days

Employees in South Korea are entitled to 15 days of paid annual leave after completing one year of service. During the first year, they accrue one day of paid leave per month worked. After 3 years, employees earn an additional day of vacation for every two years of service, up to a maximum of 25 days.

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Sick Leave Regulations

There is no statutory requirement for paid sick leave in South Korea. However, many companies voluntarily provide sick leave or allow employees to use paid annual leave for illness. Extended medical leave may be granted under specific employer policies or collective agreements.

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Public Holidays

South Korea observes 15 national public holidays, including Seollal (Lunar New Year), Chuseok (Korean Thanksgiving), and National Liberation Day. Employers are required to provide paid leave on these days, especially in workplaces subject to the Labor Standards Act.

PTO Carryover Rules

Unused annual leave is generally valid for one year, after which it expires if not used. Employers are encouraged to inform employees of their remaining days to ensure they are used before expiration.

South Korean Paid Time Off Overview

Key Considerations For Employees And Employers

Korean labor law supports annual leave rights while placing responsibility on employers to manage them effectively. Here's what to keep in mind:

Employers

  • Grant at least 15 paid leave days after 1 year of service
  • Track monthly leave accrual during the first year
  • Provide paid leave on all national holidays
  • Keep accurate records of PTO usage and balances
  • Ensure fair leave for part-time workers

Employees

  • Earn 1 PTO day per month during the first year
  • Get 15 days of leave annually after one full year
  • Use accrued leave within 1 year before it expires
  • May receive additional days with long service
  • Can use annual leave for illness in many workplaces

South Korean PTO laws are outlined in the Labor Standards Act. This guide is for informational purposes only. For tailored advice, consult legal counsel.

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Best Practices for Managing PTO in South Korea

Take note of these recommendations for hassle-free PTO management.

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    Why Compliance Matters

    Ensuring your company is compliant with South Korean PTO laws helps you avoid penalties, but also supports a transparent, healthy workplace for your team.

    1

    Keep a Clean Record

    Failing to comply with South Korea’s Labor Standards Act can lead to fines, audits, and disputes that harm your company’s reputation. By accurately tracking and managing paid leave, you reduce legal risks, maintain clear records, and build a transparent workplace culture.

    2

    Employee Satisfaction

    Employees who understand and trust your PTO policy are more likely to feel valued and supported. A consistent leave system improves morale, lowers turnover, and boosts productivity—especially in cultures where long hours are common and recovery time is crucial.

    3

    Positive Workspace

    Effectively managing PTO shows your commitment to balance and well-being. When employees know their time off will be respected, it builds trust, encourages open communication, and contributes to a healthier, more motivated team.

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    How TrackingTime Can Help

    Learn more about how we can help you optimize your PTO policies and ensure compliance with South Korean labor laws.

    Effortless Organization

    Say goodbye to messy email chains and manual tracking. With a streamlined PTO management system, you can keep all requests and records in one place, making it easy to approve time off and manage employee schedules efficiently.

    • Quick Approvals – Manage PTO requests fast.
    • Clear Records – Access all time-off data easily.
    • Team Sync – Keep schedules aligned effortlessly.

    Custom Time-Off Policies

    Every company has unique needs, and your PTO policies should reflect that. Customize your time-off rules to match your team’s structure, ensuring fairness and clarity while maintaining flexibility.

    • Flexible Rules – Tailor policies to your team’s needs.
    • Clear Guidelines – Keep everyone informed.
    • Smooth Management – Set rules that work for all.

    Real-Time Transparency

    Give your employees the confidence to plan their time off without uncertainty. By providing real-time access to balances and request statuses, you create a more transparent and trusting workplace.

    • Instant Access – Check balances anytime.
    • Live Updates – Track requests in real time.
    • Boost Trust – Keep everyone informed.

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    FAQ

    Frequently Asked Questions

    Get answers to all your questions about our service and plans.

    How many paid vacation days are required by law in South Korea?

    Under South Korean labor law, employees are entitled to 11 paid vacation days after their first year of continuous work. Additional days accrue with each year of service, up to 25 days.

    Is paid leave mandatory in South Korea?

    Yes. Employers are required to provide paid annual leave under the Labor Standards Act. Employees must have completed one year of service to qualify for full annual leave.

    Do Korean labor laws include public holidays in paid leave?

    Public holidays are separate from paid annual leave. As of 2021, private sector employers with 5 or more employees must provide public holidays as paid days off.

    What law governs vacation leave in South Korea?

    Paid leave in South Korea is regulated by the Labor Standards Act. It sets minimum vacation entitlements and outlines employer obligations regarding time off and compensation.

    Do new employees get paid leave in South Korea?

    Yes. New employees earn one paid day off per month of full attendance during their first year, up to 11 days. This structure changes after completing one full year of employment.

    Can unused paid leave be carried over in South Korea?

    No. Annual leave must be used within one year of entitlement. If not used, the days typically expire unless the employee was unable to take them for unavoidable reasons.

    Can vacation days be paid out in South Korea?

    Yes, but only when the employment contract ends. Unused vacation days must be compensated as part of the final paycheck upon resignation or termination.

    Are part-time workers entitled to paid vacation in South Korea?

    Yes. Part-time employees in South Korea are eligible for annual leave on a prorated basis, depending on the number of hours worked and contract terms.

    Do employees on leave still accrue vacation in South Korea?

    Vacation accrual may be paused if the employee is on extended unpaid leave. During paid leave or sick leave, vacation may still accrue depending on internal policy and law interpretation.

    Is vacation pay taxed in South Korea?

    Yes. Vacation pay is considered part of regular wages and is subject to standard income tax and social insurance deductions in South Korea.

    Are Korean employers required to track vacation usage?

    Yes. Employers must maintain accurate records of accrued and used vacation days for each employee to comply with labor law and ensure proper compensation on termination.

    Can employers in South Korea deny vacation requests?

    Employers may delay or adjust vacation schedules based on operational needs but must allow employees to take their annual leave within the legal period.

    Do South Korean companies need written vacation policies?

    While not mandatory, written vacation policies are highly recommended. They provide transparency, ensure compliance with labor law, and reduce workplace disputes.

    Can companies offer more vacation than required by Korean law?

    Yes. Many employers provide additional paid leave beyond the legal minimum as part of benefits packages, especially in multinational or competitive industries.

    Are vacation days included in Korean employment contracts?

    Yes. Employment contracts in South Korea typically outline vacation entitlements, accrual rules, and usage conditions, aligning with legal and company-specific standards.