In Korea, it is compulsory for employers to pay employees a separation payment. In most cases, an employee receives a separation payment when he or she resigns from the company. It is also possible for employees to ask employers to pay them the separation payment even before they leave the company.

In this component, you record all the necessary information to calculate the separation payment amount to be paid to employees. With the SAP System, you can:

• Define the service period used in calculation. It varies from company to company
• Define the average monthly salary in the last three months before the separation payment date and the average bonus for a year
• Define the taxation amount for separation payment