Seoul, South Korea – Every wonder how your salary is computed? Many of you during pay day wonder why you get paid so low or is expecting a higher take home pay. Well, let us know how your salary is computed.
First, South Korea has Minimum Wage Law. In 2016, the minimum hourly wage is 6,030 won.
The minimum wage is defined as the lowest wage that workers may be paid. A company that pays its workers wages that are lower than the minimum wage is considered to be in violation of the Minimum Wage Act. Korean law stipulates that the wages paid to foreign workers shall equal or exceed the minimum wage, which also applies to foreign workers who find jobs through the Employment Permit System and the Industrial Trainee System. (Source: Notebook on the Labor Rights of Foreign Workers, South Korea).
Now let’s get into the computation on what comprises your salary in 2016:
- Hourly Wage
- Overtime Rate
- Night Shift Differential
- Paid Weekly Holiday
6,030 won = Hourly Wage (Regular Hours from 6AM – 10PM)
9,045 won = Overtime Rate (50% more than the Hourly Wage for hours worked more than 8 hours a day)
3,015 won = Night Shift Differential (Additional Allowance from 10AM-6AM)
When extended, night, and holiday work overlap, workers’ final pay should be calculated by adding the premiums for each of the categories that apply.
48,240 won = Paid Weekly Holiday [6,030 x 8 hours] (If you work for at least 15 hours a week or 60 hours per month)
Image from : A Notebook on the Labor Rights of Foreign Workers (South Korea)
An Example to follow on the next Acticle of EPS Corner.