Wage Arrears Interest Calculator

Wage Arrears Interest Calculator helps estimate wage, overtime, allowance, arrears, or pay-period scenarios in English.

Wage arrears inputs

Calls the Korean wage-arrears module with Labor Standards Act 20% delayed interest, substitute payment caps, punitive-damage screening, and minimum-wage check.

Delayed interest

₩823,561

167 interest days

Total claim with interest

₩9,823,561

Principal ₩9,000,000

Simple substitute payment

₩9,000,000

Simple payment cap applied

Insolvency substitute payment

₩9,000,000

Age cap for a worker in the 40s

Punitive damage maximum

₩27,000,000

Potential 3x screening triggered

Hourly wage check

₩15,311

At or above 2026 minimum wage

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Korea wage arrears interest calculator guide

This English page translates the Korean wage arrears interest calculator and calls calculateWageArrearsInterest, calculateSubstitutePay, checkPunitiveDamage, and checkMinimumWage. It keeps delayed interest, substitute payment caps, and punitive-damage screening.

Delayed interest rule

The Korean page preserves Labor Standards Act Article 37 delayed interest at 20% per year. For resigned workers, wage and severance settlement is generally due within 14 days under Article 36, and delayed interest starts after that grace period.

For currently employed workers, the Korean article reflects the October 23, 2025 amendment expanding delayed interest to unpaid wages after the regular wage payment date. The calculator uses simple interest: arrears x 20% x delayed days / 365.

Substitute payment

The wage substitute payment system includes insolvency substitute payment and simple substitute payment. Insolvency substitute payment can cover last 3 months of wages, last 3 years of severance, and related maternity amounts subject to age caps. Simple payment can support workers with a judgment or labor-office confirmation.

The Korean age caps for insolvency payment include under 30 at KRW 2,200,000 per month and maximum KRW 13,200,000, age 30s at KRW 3,100,000 and KRW 18,600,000, age 40s at KRW 3,500,000 and KRW 21,000,000, age 50s at KRW 3,300,000 and KRW 19,800,000, and age 60 plus at KRW 2,300,000 and KRW 13,800,000.

Simple payment caps and punitive damages

The Korean content keeps simple payment caps: for resigned workers, unpaid wage cap KRW 7,000,000 and severance cap KRW 7,000,000, with a combined cap KRW 10,000,000. For currently employed workers, the wage cap is KRW 7,000,000 and severance is not included.

Punitive damages under Article 43-8 can reach up to 3 times the arrears amount when statutory triggers are met. The Korean calculator screens intentional arrears, 3 or more months of arrears within one year, and arrears at least 3 months of ordinary wages.

Minimum wage and records

The module also checks the 2026 minimum-wage hourly threshold used in the Korean constants and estimates monthly shortfall on a 209-hour basis. Minimum-wage violations can be separate from delayed-interest and substitute-payment claims.

Evidence is critical: wage statements, bank deposits, work schedules, messages, employment contracts, resignation date, payment due date, and labor-office filings determine whether a claim can be proven and how interest days are counted.