A disciplinary pay cut (gamgeup) for lateness or breaking workplace rules has statutory ceilings in Korea. Labor Standards Act Article 95 says that where the rules of employment provide for a pay cut as a sanction, each cut may not exceed half of one day’s average wage, and the total may not exceed one tenth of the wages for one pay period. Breaching it carries a fine of up to 5 million won under Article 114. Enter the average wage, pay and amount cut to see whether either limit is exceeded.
1. Each cut: up to half a day’s average wage.
2. Total per pay period (usually a month): up to one tenth of that period’s wages.
3. Breach: fine of up to 5 million won (Art. 114(1)).
Calculator
Updates as you type. Limits are shown with amounts under 1 won dropped; excess amounts are rounded up (our display). The calculator checks only the two numerical limits in Art. 95, not whether the cut itself is justified.
The text — Art. 95 and around it
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Art. 95 (limits on sanctions) | Where the rules of employment provide for a pay cut as a sanction, a single cut may not exceed half of one day’s average wage and the total may not exceed one tenth of the total wages for one pay period. | Both limits must be met |
| Art. 2(1)6 (average wage) | Total wages paid in the 3 months before the triggering date, divided by the number of days in that period | On 3 million won a month, roughly 90,000–100,000 won a day (ours) |
| Art. 2(2) | If that is lower than the ordinary wage, the ordinary wage is used | — |
| Art. 93(12) | Rules of employment of employers with 10 or more workers include rewards and sanctions | A cut needs a basis in the rules, on our reading |
| Art. 114(1) | Breaching Art. 95: fine of up to 5 million won | Art. 95 stays on the list after the amendment in force from 8 Dec 2026 |
Work out the daily average wage first with average wage calculator. Because it is “3 months’ wages divided by the days”, the same monthly pay gives slightly different figures over 92 days and 89 days (ours).
Four sums — our example
Each case is someone paid 3,000,000 won for the pay period with a daily average wage of 98,000 won. The per-cut limit is 98,000 ÷ 2 = 49,000 won; the total limit is 3,000,000 ÷ 10 = 300,000 won.
| Case (our example) | Result (our sum) | Worth noting (ours) |
|---|---|---|
| One cut of 50,000 won | Over the per-cut limit by 1,000 won | 49,000 won at most per cut |
| Eight cuts of 40,000 won | Total 320,000 won → over the total by 20,000 won | Per-cut limit met, total not |
| Six cuts of 49,000 won | Total 294,000 won → within both | — |
| Seven cuts of 49,000 won | Total 343,000 won → most this period 300,000 won | The rest can’t be cut this period |
Where the total limit bites, as in the last row, Article 95 doesn’t say whether the remainder may be carried into the next pay period. We don’t decide that.
“One cut” and “one pay period”
Article 95 uses only two yardsticks: the amount of one cut and the wages of one pay period. Whether three late arrivals cut together count as one cut or three, or whether unpaid suspension is a pay cut, isn’t in the text. The calculator simply takes amount × number. Article 95 also limits how much is cut, not whether the reason is justified; a cut within the limits can still be challenged on its reason, on our reading.
Whether the pay slip shows the deduction, and the rules on paying wages in full, are in pay statement required items checker and wage payment rules checker.
Checklist
- ☐ The rules of employment provide for the cut
- ☐ Each cut ≤ half a day’s average wage
- ☐ Total in the period ≤ one tenth of that period’s wages
- ☐ The deduction appears on the pay slip
Questions that remain
Does it apply to firms with fewer than 10 workers?
Article 95 speaks of cuts set “in the rules of employment”, and the duty to make and file rules (Art. 93) applies to employers with 10 or more workers. How Article 95 applies below that size we didn’t check this time.
Can I recover an excessive cut?
The part above the Article 95 limits is a reduction the law doesn’t allow, so it can be pursued as unpaid wages, on our reading. For the deadline see unpaid wages limitation calculator (3 years).
Sources
- Korean law database (law.go.kr) — Labor Standards Act Arts. 2, 93, 95, 114 — source (current text, effective 8 October 2026, Act No. 21533; checked 28 October 2026). Average wage and the ordinary-wage floor, contents of the rules of employment (rewards and sanctions), pay cut limits, penalties (including the amendment in force from 8 December 2026).
- Not read. Case law; ministry interpretations; application to workplaces under 10 workers.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Your rules of employment — grounds and amounts.
- Ministry of Employment and Labor — complaints.
Written on 28 October 2026. The content is from the source; the glosses are ours.
