The purpose of this Decree is to provide for the matters mandated by the Labor Standards Act and those necessary for the enforcement thereof.

(1) Where a period for the calculation of average wages under Article 2 (1) 6 of the Labor Standards Act (hereinafter referred to as the "Act") includes any of the following periods, such period and wages paid during that period shall be subtracted respectively from the period and the total amount of wage serving as the basis for the calculation of average wages:

1. A period not exceeding three months from the date on which an employee on probation starts working as a probationary employee after concluding a labor contract;

2. A period during which the employer's business is closed because of a cause attributable to the employer under Article 46 of the Act;

3. A period of maternity leave under Article 74 of the Act;

4. A period of temporary suspension of medical treatment due to occupational injury or disease under Article 78 of the Act;

5. A period of child-care leave under Article 19 of the Act on the Equal Employment Opportunity and Work-Family Balance Assistance Act;

6. A period of labor disputes under subparagraph 6 of Article 2 of the Trade Union and Labor Relations Adjustment Act;

7. A period of temporary retirement from office or absence from office in order to perform a duty under the Military Service Act, the Reserve Forces Act, or the Framework Act on Civil Defense: Provided, That this shall not apply to a period during which wages have been paid;

8. A period of temporary retirement from office due to a non-occupational injury or disease, or any other cause with the employer's approval.

(2) Wages and allowances paid on a temporary basis and wages paid by any means other than money shall not be included in the total amount of wages under Article 2 (1) 6 of the Act: Provided, That the same shall not apply to those specified by the Minister of Employment and Labor.

The average wage of a daily hire employee shall be the amount determined by the Minister of Employment and Labor according to the classification of business and occupation.

Where it is impossible to calculate an average wage in accordance with Article 2 (1) 6 of the Act and Articles 2 and 3 of this Decree, such an average wage shall be as determined by the Minister of Employment and Labor.

(1) The average wage applicable to the calculation of compensation, etc. for the employee pursuant to Articles 79, 80, and 82 through 84 of the Act shall, when the average amount of monthly ordinary wage per employee (hereinafter referred to as the "average amount") paid to employees in the same business category in the same business or workplace to which the relevant employee belongs has changed by at least five percent from the average amount paid in the month when an injury or a disease occurs, be such amount increased or decreased at the aforesaid rate of change, but such rate shall apply to the month immediately following the month of occurrence of grounds for change and the months subsequent thereto: Provided, That the second or latter adjustment of average wages shall be calculated based on the average amount of the month in which a cause for immediately preceding change occurred.

(2) Where the business or workplace to which the relevant employee belongs is permanently closed down, the adjustment of average wage under paragraph (1) shall be based on a business or workplace with the same business type and scale as at the time when an occupational injury or disease was inflicted on the employee.

(3) If there is no employee engaged in the same occupational category as the relevant worker, the adjustment of the average wage under paragraph (1) or (2) shall be based on employees engaged in the occupation of similar category.

(4) The average wage applicable to the computation of the retirement benefits under Article 8 of the Act on the Guarantee of Employees' Retirement Benefits, which shall be paid to an employee who suffers from an occupational injury or disease in accordance with Article 78 of the Act, shall be the average wage adjusted in accordance with paragraphs (1) through (3).

(1) For the purposes of the Act and this Decree, "ordinary wage" means hourly wage, daily wage, weekly wage, monthly wage, or contract amount to be paid to an employee for a specifically agreed work or entire work on a regular and flat basis.

(2) Where the ordinary wage under paragraph (1) is calculated on an hourly basis, the following formula shall apply to such calculation:

1. The amount agreed upon as an hourly wage, if a wage is paid on an hourly basis;

2. The amount obtained by dividing a daily wage by the contractual working hours per day, if a wage is paid on a daily basis;

3. The amount obtained by dividing a weekly wage by the number of standard hours (referring to the hours calculated by aggregating the contractual working hours per week and the hours counted as paid working hours besides the contractual working hours) for the calculation of the weekly ordinary wage, if a wage is paid on a weekly basis;

4. The amount obtained by dividing a monthly wage by the number of standard hours (referring to the hours obtained by dividing by 12 the number calculated by multiplying the number of standard hours for the calculation of the weekly ordinary wage by the average number of weeks per year) for the calculation of the monthly ordinary wage, if a wage is paid on a monthly basis;

5. The amount obtained by applying subparagraphs 2 through 4 mutatis mutandis, if a wage is paid on a specific time basis other than on a daily, weekly or monthly basis;

6. The amount obtained by dividing a total sum of wages calculated on a contractual basis for the period for the calculation of the wages by total working hours during the same period (referring to the wage settlement period, if there is a date set for the settlement of wages), if a wage is paid on a contractual basis;

7. The amount obtained by adding up the amounts calculated in accordance with subparagraphs 1 through 6, if at least two different types of wages set forth in subparagraphs 1 through 6 are paid.

(3) Where the ordinary wage under paragraph (1) is calculated on a daily basis, such ordinary wage shall be calculated by multiplying an hourly wage under paragraph (2) by the contractual working hours per day.


[Enforcement Date] The amended provisions of Article 6 (2) 3 and 4: Following dates:
(a) Business or workplaces in which at least 300 employees are regularly employed; public institutions under Article 4 of the Act on the Management of Public Institutions; local government-invested public corporations or local public agencies under Article 49 or 76 of the Local Public Enterprises Act; institutions or organizations at least 1/2 of the capital or endowment of which is invested or contributed by the State, local government or government-invested institutions; institutions or organizations at least 1/2 of the capital or endowment of which is invested or contributed by the above-mentioned institutions or organizations; and institutions affiliated to the State or local governments: July 1, 2018 (referring to July 1, 2019 in the case of a business category to which exceptions to the provision on working hours or rest breaks at work are not applicable pursuant to the amended provisions of Article 59 of the Labor Standards Act (Act No. 15513));
(b) Business or workplaces in which at least 50 and less than 300 employees are regularly employed: January 1, 2020;
(c) Business or workplaces in which at least five and less than 50 employees are regularly employed: July 1, 2021.

The provisions of the Act applicable pursuant to Article 11 (2) of the Act to any business or workplace that regularly employs four or less employees shall be as specified in attached Table 1.

(1) "Number of employees regularly employed" in Article 11 (3) of the Act means the number of employees calculated by dividing the total number of employees employed for one month (in cases of less than one month from the commencement of a business, referring to a period after the commencement of such business; hereinafter referred to as the "period of calculation") prior to the date of occurrence of a reason (referring to a reason requiring judgement as to whether the Act or this Decree applies, such as payment of a compensation of suspension of work, application of working hours, etc.; hereafter the same shall apply in this Article) governed by the Act in the relevant business or at the relevant workplace by the number of working days during the same period.

(2) Notwithstanding paragraph (1), according to the following classifications, a business or workplace shall be deemed a business or a workplace that employs five (in the case of judgement as to whether Article 93 of the Act shall apply, referring to 10 employees; hereafter referred to as "criteria for application of the Act" in this Article) or more employees (hereafter referred to as "business or workplace governed by the Act" in this Article), or shall not be deemed a business or a workplace governed by the Act:

1. In cases where it is deemed the business or the workplace governed by the Act: Where the number of days, in which the number of employees of the relevant business or the relevant workplace calculated under paragraph (1) falls short of the criteria for application of the Act, is less than 1/2 of a period for calculation even in cases not falling under the business or the workplace governed by the Act;

2. In cases where it is not deemed the business or workplace governed by the Act: Where the number of days, in which the number of employees of the relevant business or the relevant workplace calculated under paragraph (1) falls short of the criteria for application of the Act, is more than 1/2 of a period for calculation, even in cases falling under the business or workplace governed by the Act.

(3) Where determining whether the provisions of Articles 60 through 62 of the Act (excluding the provisions concerning an annual paid leave under Article 60 (2) of the Act) apply, the business or the workplace that employs five or more employees continuously for one year prior to the date of occurrence of a reason for application of the Act as a result of calculation of the number of employees by month pursuant to paragraphs (1) and (2) shall be deemed the business or the workplace governed by the Act.

(4) The total number of employees in paragraph (1) shall include all of the following employees, excluding temporary agency workers under subparagraph 5 of Article 2 of the Act on the Protection, etc. of Temporary Agency Workers:

1. All the employees working for a single business or workplace regardless of the type of employment, such as full-time employees of the relevant business or the relevant workplace and fixed-term employees and part-time employees under subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-Term and Part-Time Employees;

2. A person who works for his or her cohabiting relative’s business or workplace if such business or workplace employs at least one employee falling under subparagraph 1.

[This Article Newly Inserted by Presidential Decree No. 20873, Jun. 25, 2008]