Civil Servants to Receive Increased Holiday Pay
Seoul, South Korea – In a recent announcement by the Ministry of Personnel Management, it has been confirmed that civil servants of grade 6 and below will receive a minimum of 1.06 million won in holiday pay during the upcoming Chuseok festival. This payment, equivalent to 60% of their current monthly salary, will be disbursed before or after the event, as stipulated by the head of each organization.
The holiday pay has become a significant component of a civil servant’s compensation package. For instance, based on the 9th grade 1st salary of a general worker, amounting to 1,778,000 won per year, the pre-tax holiday pay will amount to 1,062,480 won. This represents a 50,000 won increase from the previous year and is paid biannually, excluding certain categories such as conscripted police officers, police college students, cadets, candidates, and police officer candidates.
Since 2017, a performance-based pay system has been implemented for all level 5 civil servants, thereby incorporating holiday expenses into the annual salary. The annual salary, inclusive of salary, regular service allowance, additional compensation for regular attendance, and holiday expenses, serves as the benchmark. Notably, the holiday fee accounts for 120% of the standard annual salary, taking into account both the Lunar New Year and Chuseok holidays.
However, public officials have raised concerns regarding this arrangement. After deducting pension contributions, income tax, local tax, health insurance premiums, and various membership fees, the real income for the remaining 10 months, excluding the two months of holiday pay, amounts to a mere 1.9 million won. This disparity has led to discontent among civil servants, particularly considering that this year’s minimum wage of 9,620 won falls significantly short of a monthly income equivalent to 2,010,580 won.
In response to these grievances, the government has announced a 2.5% salary increase for civil servants next year, aligning with the minimum wage increase rate. Despite being the largest increase since 2020 (2.8%), this does not meet the expectations of public officials who have called for a higher adjustment reflecting factors such as the inflation rate. The proposed basic salary for the 9th grade, 1st salary of general workers in the upcoming year will be 1,815,070 won.
The declining interest in civil service among the younger generation is a growing concern. This year recorded a competition rate of 22.8 to 1 for national level 9 posts, the lowest in 31 years. Unless improvements in the treatment of lower-level civil servants are implemented, the attraction of civil service careers to young individuals is expected to decline further.
By Sojin Lee, Reporter
Email: adsurdism@asiae.co.kr
1,062,480 earned based on the 9th grade 1st salary for general workers
60% of the current monthly salary paid twice a year
Around Chuseok this year, civil servants grade 6 or below will receive at least 1.06 million won in holiday pay.
According to the Ministry of Personnel Management and others on the 29th, all civil servants receive holiday pay before and after Chuseok. The head of each organization pays 60% of the current monthly salary within 15 days before or after Chuseok, the standard payment date.
Union members shout slogans demanding an increase in the minimum wage at the 2024 press conference urging an increase in the minimum wage held by the National Government Employees Union and the Korean Federation of Government Employees Trade Unions near the Yongsan-gu presidential office , Seoul.
If he is calculated on the basis of the 9th grade 1st salary of a general worker who receives 1,778,000 earned this year, he is paid 1,062,480 earned before tax. This is an increase of 50,000 won compared to last year, and is paid twice a year. Excluded are conscripted police officers, police college students, cadets and candidates, and police officer candidates.
Since 2017, the performance-based pay system has been introduced for all level 5 civil servants, and holiday expenses are added to the annual salary and no separate holiday expenses are paid. If you look at work guidelines like civil servant pay, the standard annual salary includes salary, regular service allowance, additional compensation for regular attendance, and holiday expenses. At this time, the holiday holiday fee is 120%, which takes into account Lunar New Year and Chuseok.
The cost of two vacation leaves accounts for a very large portion of a civil servant’s compensation. The Office of Human Resources decided that when converting two vacation leave expenses into a month, the effect is 180,000 earned for grade 9 and 200,000 earned for grade 7. If you receive all the subsidy on for the job (175,000 earned), fixed meal allowance (140,000 earned), and overtime pay (96,200 earned), the 9th grade 1st salary will be 2.36 million per month.
In fact, public officials oppose this interpretation. If the pension contribution of 160,000 earned is deducted, which is 9% of the monthly salary, and the real income is reduced to about 300,000 earned for income tax, local tax, health insurance premiums, and various membership fees, the real income on for the remaining 10 months excluding the two months holiday pay is received is 1.9 million earned Because it is only . This is the reason why civil servants continue to complain because this year’s minimum wage (KRW 9,620) is far below the equivalent of KRW 2,010,580 every month.
The government has decided to increase the salaries of civil servants next year by 2.5%, the same as the minimum wage increase rate, regardless of their rank. Accordingly, the basic salary for the 9th grade, 1st salary for general workers next year will be 1,815,070 won. This is the biggest increase since 2.8% in 2020, but it does not meet the expectations of public officials. This year, the union asked for a final increase of 4.2% (377,000 won) to reflect realities such as the inflation rate.
This year, the total number of applicants for national level 9 posts was 121,526, and the competition rate was 22.8 to 1, the lowest level in 31 years. If the way in which lower level civil servants are treated does not improve, young people’s choice of civil servants is expected to continue to decline.
Reporter Sojin Lee adsurdism@asiae.co.kr
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