I'm a business owner and employ one part-time worker. Do I have to issue a pay slip when I pay my employee? If so, what should be included and must I give it in paper form?
Article 48 of the Labor Standards Act was amended November 19, 2021, requiring that employers (companies) issue pay slips to employees when paying wages. This regulation also applies to workplaces with fewer than five employees, meaning that even one part-time worker must receive a pay slip (pay stub). In order to ensure that employees have been paid as much as they actually worked, and also as originally contracted with the employer, employers are required to write down information on how they calculate the wage as well as the total amount.
The following items need to be stated in the pay slip:
1. Information that can identify the relevant employee, such as the employee's name, date of birth, and employee ID number;
2. Date wages are being paid;
3. Total amount paid;
4. Items of Wage Structure: The basic salary, all allowances separately, bonuses (including performance-based) separately, and other wage items (if wages are paid by means of valuable goods other than money, the name, quantity, and total assessed value of the goods must be itemized);
5. Calculation of the items of Wage Structure: Methods for calculating the amount of each wage item (including the working hours for any overtime duty, night duty, or holiday duty), if the amount of each wage item changes according to the number of working days, working hours, etc.;
6. Details of deductions, including the amount of each deduction and the total amount of deductions, under the proviso of Article 43 (1) of the Act in cases of partial deduction of wages.
An employer who violates this obligation to issue a pay slip may be subject to a fine of not more than KRW 5 million (Article 116 (2) of the Labor Standards Act). Attached Table 7 of the Enforcement Decree of the Labor Standards Act sets the standard for imposing fines for violations of the obligation to issue pay slips. The fines are imposed on the employer for each worker, so care must be taken.