Wage Peak Retirement Calculator

Wage Peak Retirement Calculator helps model income changes during career breaks, resignation, retirement, or job transitions.

Wage peak and retirement inputs

Calls the Korean wage-peak retirement module with pay-cut schedules, social insurance, wage-peak subsidy, severance scenarios, interim settlement, and pension impact.

Grand total difference

+₩27,083,341

Salary plus severance after tax

Net loss before severance

-₩32,568,480

-7.6% gross reduction

Total wage-peak subsidy

₩10,800,000

0% of reduction

Severance settlement difference

+₩41,002,604

Interim settlement selected

Pension contribution saving

₩1,944,000

Estimated pension reduction ₩116,640

Projection years

5

55 to 60

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Korea wage peak retirement calculator guide

This English page translates the Korean wage peak retirement calculator and calls calculateWagePeakRetirement. It preserves wage-cut schedules, social insurance, income tax, wage-peak subsidy, severance comparison, interim settlement, and pension impact.

Wage peak structure

The Korean page explains wage-peak systems in the context of mandatory retirement at age 60 for larger workplaces from 2016 and continuing policy discussion around age 65 in 2026. Types include retirement-age guarantee, retirement-age extension, and reemployment.

Common reduction patterns include 90%, 80%, 70%; 100%, 80%, 60%; and 70%, 60%, 50%. The English calculator lets the scenario call the Korean module with yearly reductions and extension-year salary rate rather than using one generic reduction percentage.

Net salary, subsidy, and tax

The calculation keeps employee-side social insurance and income-tax logic: National Pension, Health Insurance, long-term care, employment insurance, income tax, and local income tax are applied each projected year. The Korean content references employee rates such as National Pension 4.5%, Health Insurance 3.545%, long-term care 12.95%, and employment insurance 0.9%.

The wage-peak subsidy can apply from age 55 when employment lasts at least 18 months, wage reduction is at least 10%, and weekly hours are at least 15. The Korean content uses a maximum of KRW 300,000 per month for up to 5 years.

Severance and interim settlement

A wage peak can reduce final average wage and therefore severance. The Korean calculator compares severance without interim settlement against an interim-settlement scenario before the pay cut and a remaining severance period after the wage peak.

The Korean content references the Retirement Benefits Act Enforcement Decree Article 3, which allows interim settlement when wages decrease due to a wage-peak system under qualifying conditions. The result reports severance difference and a recommendation from the Korean module.

Pension impact and rule changes

Lower wages can reduce National Pension contributions during the wage-peak period. The module reports contribution saving and an estimated pension reduction so the user can compare cash flow against future benefit impact.

The Korean article also notes that disadvantageous work-rule changes require majority consent under the Supreme Court en banc position issued in December 2024. Company wage-peak rules should be checked against collective consent, employment rules, and individual contracts.