Home

The Korea Herald

Latest news

Most Popular

  1. 1

    Trump picks ex-N. Korea policy official as his principal deputy national security adviser

    Trump picks ex-N. Korea policy official as his principal deputy national security adviser
  2. 2

    First snow to fall in Seoul on Wednesday

    First snow to fall in Seoul on Wednesday
  3. 3

    S. Korea not to attend Sado mine memorial: foreign ministry

    S. Korea not to attend Sado mine memorial: foreign ministry
  4. 4

    Man convicted after binge eating to avoid military service

    Man convicted after binge eating to avoid military service
  5. 5

    Wealthy parents ditch Korean passports to get kids into international school

    Wealthy parents ditch Korean passports to get kids into international school
  1. 6

    Actor Jung Woo-sung admits to being father of model Moon Ga-bi’s child

    Actor Jung Woo-sung admits to being father of model Moon Ga-bi’s child
  2. 7

    Toxins at 622 times legal limit found in kids' clothes from Chinese platforms

    Toxins at 622 times legal limit found in kids' clothes from Chinese platforms
  3. 8

    [Weekender] Korea's traditional sauce culture gains global recognition

    [Weekender] Korea's traditional sauce culture gains global recognition
  4. 9

    BLACKPINK's Rose stays at No. 3 on British Official Singles chart with 'APT.'

    BLACKPINK's Rose stays at No. 3 on British Official Singles chart with 'APT.'
  5. 10

    Korea to hold own memorial for forced labor victims, boycotting Japan’s

    Korea to hold own memorial for forced labor victims, boycotting Japan’s
소아쌤

Majority of businesses adopt wage peak system after retirement age extension: data

By Lee Joo-hee

Published : March 19, 2017 - 14:04

    • Link copied

Nearly 7 out of 10 companies with more than five employees have adopted a "wage peak" or incentive payment systems since the introduction of legislation to extend the retirement age to 60 in 2013, a survey showed Sunday.

The government has pursued the wage peak system in which employees accept reduced salaries for several years before retirement to reduce the corporate financial burden with the retirement age extension.

In this file photo taken on Nov. 14, 2015, public servants protest against the introduction of the wage peak system in public companies during a rally held in central Seoul. (Yonhap) In this file photo taken on Nov. 14, 2015, public servants protest against the introduction of the wage peak system in public companies during a rally held in central Seoul. (Yonhap)

Almost 68 percent of 227 companies have adopted the wage peak system or conducted other major reshuffles of their wage payment systems between 2013 and 2016, according to the survey by the Korean Employers Federation.

Just over 79 percent of the companies with more than 300 employees have made changes in the wage payment system, while the comparable figure for those with fewer than 300 employees was 63.1 percent.

More than half (52.2 percent) of the companies with over 300 employees have introduced the wage peak system, while 31.3 percent have an incentive system and 28.4 percent changed their basic salary systems.

For those with fewer than 300 workers, the basic salary payment system was the most popular with 35.6 percent, followed by incentive systems with 23.1 percent and the wage peak system with 22.5 percent.

One-third of those surveyed said the changes in the wage payment system will provide motivation for the workers, while 27.7 percent wanted to reduce risks in labor-related laws with the changes.

Labor cost reduction (12.8 percent) and employment for new recruits (11.6 percent) also prompted the changes in the payment system. (Yonhap)

More from Headlines