If you're living and working in South Korea and plan to apply for government welfare programs or loans, you'll likely come across the term "monthly average income." This isn’t just your monthly salary—it’s a calculated figure used to assess your eligibility for various support systems. In this article, we explain what monthly average income means, how it’s calculated, and provide examples for easy understanding.
1. What Is Monthly Average Income?
In Korea, the monthly average income is calculated using the following formula:
Monthly Average Income = Total Income During Employment Period ÷ Number of Months Worked
This means dividing your total wages over your employment period by the number of months you worked.
2. Example Calculation
ItemDetails
| Date of Hire | August 2023 |
| Employment Period | August–December 2023 (5 months) |
| Total Income | 10,000,000 KRW |
| Formula | 10,000,000 ÷ 5 |
| Monthly Average Income | 2,000,000 KRW |
3. If You Worked at Multiple Workplaces
If you worked at two or more workplaces, you need to calculate the monthly average income for each job and then add them together:
Monthly Average Income = A Workplace Income + B Workplace Income
4. For Short-Term or Newly Hired Workers
If you worked for less than 3 months in the previous year or were recently hired, use the formula below:
Monthly Average Income = (Total Income in Last 3 Months ÷ Number of Days Worked) × 30
| Item | Details |
| Date of Hire | November 2023 |
| Calculation Period | July–September 2024 (3 months) |
| Total Income | 6,000,000 KRW |
| Days Worked | 92 days |
| Formula | (6,000,000 ÷ 92) × 30 |
| Monthly Average Income | 1,956,522 KRW |
5. Official Definition in Korea
According to Korea’s “Labor Welfare Business Operation Regulations”:
"Monthly average income" refers to income calculated by taking the sum of business, labor, and other income during a taxable period (excluding leave periods), subtracting non-taxable items and necessary expenses, and converting it into a monthly average.
- If you have multiple jobs: calculate each separately, then add them.
- If you worked less than 3 months: use average daily income × 30 as a substitute.
6. Conclusion
Monthly average income plays an important role in determining your eligibility for welfare programs, loans, housing subsidies, and more in Korea. Whether you're applying for a stability loan, worker support fund, or public housing, it's crucial to calculate and report this figure accurately.
Use the methods above—or a calculator—for a quick estimate of your own monthly average income in Korea.
