Korea Disciplinary Wage Reduction Limit Calculator

Compare each disciplinary wage reduction and the pay-period total with Korean 2026 limits, separating deducted and planned amounts.

Korea 2026 · Verified October 1, 2026. Act effective August 20, 2026. Initial numbers are illustrative; results are withheld until scope is confirmed.

1. Confirm the scope

2. Enter wage bases

Legally assessed regular count, 0–100,000.

Use the preceding three-month and exclusion rules. Above 0, up to 10 million KRW.

Do not use monthly pay divided by 30. Above 0, up to 10 million KRW.

0–1 billion KRW. Confirm the reference period and wage base for variable pay, absence or mid-period departure.

Do not enter net pay after tax and insurance. For variable wages, verify the basis used by payroll, including the pay period before the sanction notice where applicable.

3. Reduction entries

Enter independent cases fully deducted in this pay period. Do not split one case into installments. Count means cases, not months. 1–20 rows; 0–1 billion KRW per case; 1–100 cases per row.

Entry 1
Entry 2

4. Compare the limits · Example

Calculation withheld — this is not a zero result.

  • Confirm ordinary private-sector employee status and Article 11 exclusions.
  • Separate suspension, absence, taxes, insurance and damages from disciplinary reductions.
  • Verify average and ordinary daily wages and the gross wage reference period.
  • Only independent cases fully deducted in one pay period using the same daily wage bases are supported. Review multi-period installments or repeated sanctions separately.

5. Prepare a payroll inquiry

Gather pay slips, both daily-wage calculations, the sanction notice, work rules and deductions by case and period. Review the grounds and process as well as the amounts.

Related calculators

Check disciplinary wage reductions against two Korean limits

A pay slip showing a disciplinary deduction raises two separate numerical questions: how much was deducted for each independent case, and how much was deducted within the pay period overall.
This calculator helps private-sector workers, their families and payroll staff compare the same records under the Korean Labor Standards Act in 2026.
All monetary inputs and results are in Korean won, or KRW.
The English page uses Korean rules and is not a calculator for employment law in another country.

The comparison is a starting point for requesting an explanation or correction from payroll.
An excess flag does not determine every legal issue, and a within-limit result does not approve the grounds or process of a sanction.
Civil-service and teacher disciplinary appeals, litigation costs and the economic impact of suspension belong to separate reviews.

Confirm the scope and the nature of the deduction

Supported general case

The tool covers an ordinary private-sector employee at a workplace with at least five regular employees, where a disciplinary reduction is made from wages earned through work.
All entries must use the same verified daily wage bases, and each independent case must be deducted in full within one pay period.
Use the legally assessed regular employee count, rather than attendance on one particular day.

Separate review required

Public officials, teacher sanctions, disputed employee status, family-only businesses and domestic-worker exclusions require separate consideration.
The tool also withholds results for workplaces with four or fewer regular employees and for deductions split across multiple pay periods.
Being outside its scope does not authorize arbitrary wage deductions.
Do not mix suspension or absence-related wage issues, taxes, insurance contributions or damages into disciplinary reduction entries.

Prepare average and ordinary wages as daily amounts

Average wage generally uses total wages over the three months preceding the relevant event divided by the total calendar days in that period.
Excluded periods and wages, shorter service and the nature of individual wage items can affect the calculation.
Do not substitute monthly pay divided by 30.
Ordinary daily wage also needs an appropriate calculation from verified records, such as ordinary hourly wage and contractual daily hours.
This tool takes the resulting daily amounts; it does not classify individual wage components.

The Article 2(2) floor

If calculated average daily wage A is below ordinary daily wage O, use the ordinary wage as the average-wage basis.
B = max(A, O) is applied before the single-case limit, and any uplift is shown separately.
For A = 80,000 KRW and O = 120,000 KRW, the adjusted average B is 120,000 KRW and the single-case cap is 60,000 KRW.
Equal daily amounts require no uplift.

Use verified gross reference wages and the correct period

The period-cap input W is the verified gross reference wage before disciplinary reductions.
It is not the bank deposit after taxes and insurance, annual salary or automatically just the base-pay line.
Check the actual wage calculation period, such as a month for monthly wages or a week for weekly wages.
The optional period note records that basis; it does not convert dates into wages or months.

Variable pay, absence and departure

A Ministry of Employment and Labor 1350 response discusses using the pay period preceding notification of the sanction where monthly wages vary.
Do not automatically select the number on the current pay slip without checking its reference period and included items.
Absence or departure during a period also calls for review of the wages and period concerned.
Keep the wage-basis confirmation unknown if the records do not settle the basis; the calculator will withhold amounts.

How the two limits are calculated

One independent case

L = B / 2
Compare the reduction for one case with L.
Excess per case is max(amount − L, 0).
For several independent cases at the same amount, multiply that excess by their count.
Equality with the limit is not an excess.

One pay period

P = W / 10
Add amount × count for the included entries to obtain S.
Period excess is max(S − P, 0), and period headroom is max(P − S, 0).
Headroom does not override the single-case cap.
Exclude taxes, insurance and other non-disciplinary deductions from S.

Inputs accept two decimal places; results retain up to three when division creates a fractional won.
The calculator does not invent a statutory whole-won rounding rule and avoids intermediate rounding at the boundaries.
Its amount, row and count limits are software input limits, not additional statutory restrictions on sanctions.

A step-by-step pay-slip comparison

  1. Read the contract and deduction notice, then confirm employee status, disciplinary-only entries and the single-period scope.
    Separate deductions of a different nature before entering amounts.
  2. Enter the verified employee count, average and ordinary daily wages, and gross reference wages.
    A blank represents missing data; do not confirm an assumed amount as a verified fact.
  3. Add each group of independent cases with its amount and count, and select already deducted or planned.
    Use the optional case reference to avoid entering the same incident more than once.
  4. Compare the current and including-planned scenarios.
    Review excess per case, the total excess against single-case caps and period excess separately.
    Do not add the two excess totals.
  5. Download the TXT report or print it to paper or PDF and ask payroll to check the records.
    Mark the inquiry checkbox only after making contact yourself; the calculator sends nothing to the employer.

Worked example: six reductions of 60,000 KRW

Assume average daily wage of 120,000 KRW, ordinary daily wage of 100,000 KRW and gross reference wages of 3,000,000 KRW.
The adjusted average is 120,000 KRW, the single-case cap is 60,000 KRW and the period cap is 300,000 KRW.
Each case in this fictional example is independent and is fully deducted within the same pay period.

Deducted and planned reductions compared against both caps in KRW
StageReduction totalSingle-cap excessPeriod excess
Four cases deducted240,000 KRW0 KRW0 KRW
Six including two planned360,000 KRW0 KRW60,000 KRW

After four deductions, period headroom is 60,000 KRW.
Adding both planned cases exceeds the period cap by 60,000 KRW even though each case equals its individual cap.
Adding only one planned case would bring the total to exactly 300,000 KRW, without a period excess.
A planned deduction is not money already taken and should not be described as an existing loss or refund.

Why the two excess figures cannot be added

Compare reductions of 100,000 KRW

With the same wage bases, one reduction of 100,000 KRW exceeds the single-case cap by 40,000 KRW but remains within the period cap.
Four such cases total 400,000 KRW: their single-cap excess totals 160,000 KRW, while the period excess is 100,000 KRW.
Both figures compare the same deductions against different restrictions.
Adding them into a 260,000 KRW refund would double count overlapping amounts.
The scope of any correction or claim also depends on the sanction, prior settlements and wage records.

A result without excess flags does not validate the grounds or procedure for discipline.
Work-rule authority, notice and opportunity to respond, and treatment of the same incident require separate assessment.
Period headroom is a mathematical comparison, not permission to impose more discipline.

Missing information and boundary cases

  • Unknown or unsupported conditions produce a withheld result.
    This is neither a zero cap nor a finding that the employer acted unlawfully.
  • Blank amounts, negative or invalid numbers and fractional case counts stop the calculation.
    Distinguish a verified zero from a value you do not know.
  • A verified gross wage base of zero gives a period cap of zero.
    A positive reduction will exceed that numerical cap, but handling a sanction in a period without wages needs separate legal review.
  • Average daily wage of 100,000.01 KRW and ordinary daily wage of 80,000 KRW give a single-case cap of 50,000.005 KRW.
    The fractional result is retained for comparison; check any whole-won payroll treatment and its basis separately.

Count means independent cases, not the number of months in a disciplinary notice.
Do not split one incident into several rows to multiply its cap.
Different wage-reference dates, different daily bases or sanctions spanning multiple pay periods do not fit the supported model and require an individual review.

Frequently asked questions

Is any deduction below 10% of monthly wages acceptable?

No.
The single-case cap of 1/2 of adjusted average daily wage must also be checked.
Grounds and procedure are separate questions.

Can I use daily base salary instead of average wage?

Do not assume they are equal.
Verify average and ordinary daily wages separately, then apply the Article 2(2) floor if average wage is lower.

Should I enter the net amount deposited into my bank account?

No.
Use verified gross reference wages before the disciplinary reduction.
For variable wages, confirm the reference period and included wage items with payroll.

Can one incident be split into several cases?

No.
The count represents independent cases, not months or installments.
Multi-period sanctions are outside this calculator.

Do I include wages lost during suspension?

Distinguish wages not earned because work was not performed during suspension from an Article 95 reduction of wages already earned.
Absence, tax, insurance and damages also need separate treatment.

Can a four-person workplace freely reduce pay?

A withheld result does not authorize deductions.
Review the employment contract and the wage provisions that apply to the actual case.

Can I claim the displayed excess as an immediate refund?

The report compares amounts with two caps.
The excess figures can overlap, and the validity of the sanction is a separate issue.
Do not add them into a refund claim.

Does downloading submit anything to my employer?

No.
TXT and print outputs are for your records.
Contact payroll yourself with the pay slips, notice and work rules, and mark completion only after doing so.

Official sources and effective dates

The current legislation was checked directly through the National Law Information OPEN API on 2026-10-01.
The Labor Standards Act is ID001872/MST283457, promulgated 2026-02-19 and effective 2026-08-20.
The Enforcement Decree is ID003058/MST270551, promulgated 2025-04-08 and effective 2025-10-23.
Recheck the articles and applicable administrative guidance when either changes.

Request an explanation using the report and source records

If the figures differ, ask which period, wage basis and disciplinary case were used.
Keep the pay slip and sanction notice beside the comparison so that arithmetic mistakes and disagreements about the underlying rules can be examined separately.
Save the explanation and an updated report after checking the records with payroll.
Seek individual labor advice if the grounds or process remain disputed.
Return to the calculator with verified daily wages and gross reference wages, then save the comparison before and after planned deductions.