When deciding on the best South Korea compensation and benefits plan, you’ll have to consider the statutory minimums as well as what your employees may expect. The right South Korea benefit management plan should attract top talent to your open positions and keep you compliant with all of the country’s regulations. Globalization Partners can help. Our South Korea compensation and benefits outsourcing services will make sure your employees are paid at the right times and get the benefits they deserve.
South Korea Compensation Laws
South Korea recently raised its minimum wage by more than 1.5% in 2021. The current minimum wage is 8,720 won per hour, which is approximately $7.78. Known for its long working hours, South Korea recently passed a bill that cut the maximum workweek down from 68 to 52 hours. This bill also reduces regular working hours down to 40 per week with up to 12 hours of overtime. If an employee works overtime, it needs to be paid at a rate of 50% to 100% on top of their regular compensation.
Your South Korea benefit management plan must include any guaranteed benefits that are required by law. These benefits include time off for holidays and vacation days. Employees in South Korea get Labor Day — the 1st of May — off as a mandatory paid holiday. Depending on the size of your company, you may also be required to give employees paid days off for other national holidays. By 2022, all companies with 5 or more employees, will need to give public holidays as paid holidays.
Full-time salaried employees must legally receive 15 days of paid vacation after one year of service with your company. For every two years they work afterward, they’re entitled to an additional day off. However, they cannot exceed 25 vacation days earned per year.
Another common guaranteed benefit is maternity and paternity leave. Female employees receive 90 days of maternity leave but need to agree on the start date with the employer. Either your company or the country’s Employment Insurance will pay for this leave depending on your company’s size. Employees who have worked for your company for more than a year may also be eligible for parental leave.
South Korea Benefit Management
A robust South Korea benefit management plan also includes any supplemental benefits employees may expect. In South Korea, employers often provide supplementary health and life insurance benefits to employees. When you work with Globalization Partners, we can advise you on the typical costs of health insurance and arrange any benefits you need.
Benefits and Compensation Restrictions
Although collective bargaining agreements (CBAs) are not as common in South Korea as in other countries, you should still make sure your employees or industry is not covered by one. Since South Korea’s laws are often changing, staying up to date with all South Korea compensation laws is essential to remain compliant.
Why Choose Globalization Partners?
Choosing Globalization Partners means receiving an easier South Korea compensation outsourcing option. With our benefit outsourcing services, you can focus on your business instead of worrying about compliance. Contact us today to learn more about what we do.