MOEL Interpretation

Labor Standards Act

Wages


  •  
     Search
362 Records
362.Whether the "worksite relocation assistance payment" qualifies as ordinary wages. ○ Eligible recipients: Employees whose worksite has been relocated to another region after appointment ○ Relocation expenses paid to eligible recipients ① Relocation expenses: Employees relocating with family Paid as actual expenses upon submission of supporting documents verifying the transportation of household goods for the entire family residence move ② Worksite relocation assistance payment: Employees relocating alone Paid 350,000 KRW per month, not paid if the entire family relocates Calculated on a pro-rata basis from the personnel transfer date
361.Whether performance-based annual salaries (variable and fixed performance bonuses) that have different payment rates depending on performance grades are included in ordinary wages. Article 4 (Definition of Terms) 3. "Performance annual salary" refers to pay that is differentially paid based on the evaluation results of individuals and organizations. a. "Fixed performance bonus" refers to pay that is differentially paid to individuals according to the grade determined by the performance evaluation for the evaluation period. b. "Variable performance bonus" refers to pay that is differentially paid according to the grade of the institution’s management performance evaluation. Article 8 (Performance Annual Salary) ① The performance annual salary refers to pay that is differentially paid based on individual and organizational evaluation results, and may be paid within the budget range annually according to individual evaluations and organizational performance. ② Details on the payment of the performance annual salary shall follow the “Salary Payment Rules.” Article 5 (Payment Timing) ① The variable performance bonus is principally paid once a year within the budget scope of Article 4, considering the research institute’s financial situation, and may be paid additionally if necessary. ② The fixed performance bonus is principally paid monthly on a pro-rata basis within the budget scope of Article 4, considering the research institute’s financial situation, and may be paid additionally if necessary. Appendix No. 4 Performance Annual Salary Payment Ratios “Fixed performance bonus payment ratio” is stipulated as 20% to 250% depending on rank “Variable performance bonus payment ratio” is stipulated as 0% to 100%
360.When the overtime premium for night work occurring under an every-other-day shift schedule is pre-calculated and included in the monthly salary, whether the fixed overtime premium qualifies as ordinary wages.
359.Whether efficiency allowances, rank-based (individual) bonuses paid only to employees currently in service or to those who meet a certain number of working days, qualify as ordinary wages.
358.Whether “performance-differentiated management incentives,” the payment and amount of which are determined in the following year based on the worker’s performance in the previous year, qualify as ordinary wages.
357.When working hours are reduced at the request of a pregnant employee, should the ordinary wages used as the basis for calculating maternity leave pay be based on the ordinary wages before the reduction of working hours? Or should they be based on the ordinary wages at the time when the working hours were reduced, i.e., at the time of applying for maternity leave?
356.According to work rules, an amount equivalent to “70% of salary” is multiplied by 5, then divided by 12, and paid monthly. On the pay slip, this is listed as a bonus item, and the total of the January salary and the bonus is paid to each employee as the January salary. Does this bonus count as ordinary wages? Salary Regulations Chapter 4: Bonuses ∘ Article 22 [Payment]: Bonuses are paid annually at 500% based on 70% of salary, paid monthly in 12 installments along with salary. Salary includes base pay, position allowance, qualification allowance, meal allowance, and long service allowance. ∘ Article 23 [Bonuses for Mid-Year Entrants]: Bonuses for mid-year entrants are calculated pro rata. ∘ Article 25 [Bonuses for Retirees]: Bonuses for retirees are calculated pro rata and paid.
355.Our company pays the following allowances to employees, with differing nature, eligibility criteria, and payment timing. We would like to know whether these allowances qualify as ordinary wages. Allowances Payment Conditions: Family Allowance ∘ Single employees receive 10,000 KRW; married (2-person family) receive 20,000 KRW; one child (3-person family) receives 30,000 KRW, with an additional 10,000 KRW for each extra child. ∘ The amount varies according to the number of family members. Length-of-Service Allowance ∘ Regular employees receive 3,000 KRW after 3 years of continuous service, with an additional 3,000 KRW added each year thereafter. ∘ This allowance is paid only to regular employees; once promoted to supervisor, the allowance ceases. Health Allowance (Menstrual Allowance) ∘ Female production workers who do not take menstrual leave are paid an additional one day’s wage. This does not apply to managerial staff. ∘ Menstrual leave is considered unpaid leave according to work rules. Standby Allowance ∘ Certain employees are required to start work at 7 AM (normal start 8 AM) and leave after 9 PM (one hour after normal end). ∘ This duty is called “standby,” with a 6,000 KRW allowance paid per occasion, occurring about 5-15 times a month. Holiday Bonus and Vacation Pay ∘ Holiday bonuses are paid every Lunar New Year and Chuseok only to employees employed on the payment date. ∘ Vacation pay is paid as 50% of the base salary for managerial staff and 15 days’ daily wages (approximately 50% of monthly base pay) for production staff, only to employees employed on the payment date. ∘ These payments are not explicitly stipulated in the work rules but are paid annually as a customary practice. Regular Bonus ∘ An annual bonus equal to 200% of base pay is divided into 12 monthly installments and paid monthly. ∘ This bonus is paid only to production staff; managerial staff do not receive it.
354.The composition of wages and payment conditions at our company are as shown in the table below. We would like to know whether the bonuses and various allowances, which are currently excluded from ordinary wages, qualify as ordinary wages. | Wage Components | Amount (KRW) | Remarks | | --------------------------- | ------------ | ---------------------------------------------------------------------------------------------------------- | | Basic Salary | 754,160 | | | Job Allowance (Driving) | 369,200 | | | Length-of-Service Allowance | 13,720 | For service over 3 years: 3 years (4,580 KRW/month), 4 years (9,150 KRW/month), 5 years (13,720 KRW/month) | | Bonus | 377,080 | 1. Annual 600% of basic salary paid in 12 monthly installments | ``` 2. Calculated as one month if working 15 days or more in the month 3. Not calculated if working less than 15 days in the month | ``` \| Meal Allowance (Driving) | 150,000 | 1. Calculated by dividing monthly fixed amount by 30 and multiplying by workdays 2\. Deducted for new hires, leave of absence, suspension, absence, vacation over one month, retirees | \| Low-Wage Compensation Allowance | 50,000 | Paid to some employees (total 70 persons) at certain offices and relay stations | *Current inclusion in ordinary wages: Basic Salary + Job Allowance + Length-of-Service Allowance*
353.Our company’s wage composition and payment conditions are as follows. We would like to know whether the meal allowance and others qualify as ordinary wages. Allowances and Payment Conditions: Meal Allowance ∘ Paid 100,000 KRW monthly to all branch office employees Vehicle Allowance by Position ∘ Paid to managers and above ∘ 200,000 KRW monthly for department heads and deputy general managers, 100,000 KRW for managers Qualification Allowance ∘ Paid to employees registered with various licenses as required by the company ∘ 50,000 KRW monthly for drivers, 30,000 KRW for technicians Cash Handling Allowance ∘ 30,000 KRW monthly paid to accounting staff Position Allowance ∘ 300,000 KRW monthly paid to team leaders, directors, and center heads Year-End Incentive ∘ Paid based on evaluation of the previous year’s management performance and individual achievements; only paid to employees on the payroll at the payment date, not to those who retired before Summer Vacation Allowance ∘ 600,000 KRW paid to employees on payroll as of the reference date, not paid to those who retired earlier Gift Allowance ∘ Paid to employees on payroll as of the reference date: 200,000 KRW on Lunar New Year and Chuseok, 50,000 KRW on Labor Day; not paid to those who retired earlier Birthday Support Fund ∘ 100,000 KRW paid to employees on their birthday if on payroll on the reference date; not paid to retirees Family Allowance ∘ Paid to employees with preschool children (starting from second child); paid only to those with full attendance in the month Group Insurance Premium ∘ Covered for employees on payroll as of the reference date; not for retirees ∘ Contracted annually with insurance company, premiums paid directly to insurer Communication Expenses ∘ For team leaders, field marketing, technical team, management, field PDs, reporters, auditors, advertising, general affairs/education staff: reimbursed actual expenses exceeding 20,000 KRW up to 70,000 KRW ∘ For other employees: reimbursed actual expenses exceeding 20,000 KRW up to 30,000 KRW Personal Vehicle Operation Allowance ∘ For team leaders: reimbursed actual expenses up to 70 liters per month ∘ For sales, reporting deputies, etc.: reimbursed up to 120 liters per month
352.When bonuses are converted into hourly wages and included in the total wage amount, how should they be included in the calculation of the average wage?
351.How to include bonuses with a one-year calculation period in the average wage
350.Whether summer vacation allowance corresponds to average wage
349.Our company has established a system to pay a safety incentive if predetermined safety goals are achieved over a set period (12 months) to promote safe operations. We ask whether the safety incentive pay, which is conditional and paid irregularly as described below, should be included in the calculation of average wage. 1. Overview of the Safety Incentive System * Implemented from January 1, 1996, to encourage all employees’ interest in accident-free safe operation, raise safety awareness, and achieve accident-free establishment and safe operations. 2. Basis for Payment * Paid upon achievement of safety goals as announced in advance by the company’s “No-Accident Safety Incentive System Operation Guidelines” (there is no provision in collective agreements or employment rules regarding payment or guidelines, and no prior agreement with the labor union). 3. Amount and Timing of Payment * Upon achieving goals, an amount equivalent to 50% of the monthly salary is paid at a time separately determined by the company. 4. Payment History * Jan 1, 1996 – Dec 31, 1996: Safety goals achieved; first payment on Jan 17, 1997 * Jan 1, 1997 – Aug 31, 2000: Goals not met; no payment * Sept 1, 2000 – Aug 31, 2001: Goals achieved; payment scheduled for October
348.The complainant suffered an acute cerebral infarction (stroke) on October 26, 1992, which was recognized as a work-related injury. They received medical care compensation under the Industrial Accident Compensation Insurance Act until July 31, 1996. On that date, the Korea Workers’ Compensation and Welfare Service notified the complainant of the treatment completion decision, and the complainant has been receiving a disability compensation pension since then. At the same time as the treatment was completed, the complainant was placed on unpaid leave. On July 31, 2001, the complainant submitted a resignation letter and retired. The company paid severance pay calculated based on the average wage at the time of the work-related injury occurrence (₩70,039.87), amounting to ₩21,725,792. The complainant alleges this is unfair and has filed a petition demanding that the severance pay be calculated and paid based on the average wage applied at the time of disability pension receipt at retirement (₩130,461.13). Meanwhile, Article 5, Paragraph 4 of the Enforcement Decree of the Labor Standards Act [currently Article 25 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act] stipulates: “In calculating severance pay under Article 34 of the Act for a worker injured or ill due to work under Article 81 of the Act, the applicable average wage shall be the adjusted average wage as calculated under Paragraphs 1 to 3.” (In the complainant’s case, the adjusted average wage at the time of treatment completion was ₩80,049.66.) In cases where a worker injured on the job completes treatment but does not retire immediately and instead takes a long-term unpaid leave before retirement, how should the average wage for severance pay be calculated?
347.When calculating the average wage for severance pay, if the three months prior to the retirement date include periods of suspension due to the employer’s fault under Article 45 of the Labor Standards Act [currently Article 46], and periods of (illegal) strike activity, how should the average wage be calculated?
346.Three employees applied for an interim settlement of severance pay, and there is a question regarding the calculation of bonuses. Interim settlement reference date for severance pay: January 31, 2003 When calculating the bonus, the average wage is based on the 1-year period preceding the interim settlement reference date, and the 3-month average wage is calculated accordingly. The three employees received bonuses totaling 700% during the period from February 1, 2002, to January 31, 2003, paid 7 times. According to the company’s employment rules, bonuses are to be paid each quarter and on Lunar New Year and Chuseok, each at 100%, but the three employees received two Lunar New Year bonuses (in 2002 and 2003) within this period, resulting in 700%. The question is whether the bonuses subject to inclusion in the average wage should be counted as 600% or 700%?
345.Inquiry regarding average wage calculation for severance pay. When an employee takes a leave of absence due to the employee’s own fault, is the leave period included in the average wage calculation? In other words, should the average wage be calculated over 3 months including the leave period, or excluding the leave period?
344.In the current wage agreement, an allowance called the Summer Health Support Allowance is paid only to workers in the Steelmaking and Casting factories during June, July, and August. The Summer Health Support Allowance is a job-related allowance paid only to workers working under high-temperature conditions, included in the salary for June, July, and August. If the worker does not work during any of these months, the allowance is not paid. Considering this, according to Article 19 of the Labor Standards Act [currently Article 2], when the Summer Health Support Allowance is paid only during the three months prior to retirement, it is included in severance pay. Regardless of the nature of the salary, wages are payments made as consideration for work. Since the payment period is only June, July, and August, from the perspective of fairness, it should be divided evenly over 12 months, and 3 months' worth should be included in the severance pay calculation. Which of these two approaches is correct?
343.A, who left the ○○ Cooperative, was placed on standby assignment by the workplace from February 5, 2003, to April 8, 2003, and transferred on April 8, 2003. The workplace submitted a certificate of transfer with the average wage calculation period including the standby assignment period, from January 9, 2003, to April 8, 2003. Should the standby assignment period be included in the average wage calculation period related to A’s job-seeking daily allowance?
<<  <  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 > >>


For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com