Government focuses on restoring social dialogue on labor market reform through the Tripartite Committee
The government held an economy-related ministerial meeting on 12 August and confirmed its intention to complete labor market reforms this year (see Table 1 for details).
[Table 1] Government-Planned Labor Market Reforms
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Details |
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Expand implementation of wage peak systems |
[Led by public institutions] Reflect in management evaluations (3 points in max.) and apply wage increase rate for next year in case of early introduction of wage peak systems in public institutions to promote further introduction of wage peak systems in all public institutions by the end of this year
[Expansion in the public sector] Provide consultation and guidance to a group of 30 enterprises and workplaces on a special watch list [Changing employment rules] Strengthen support and guidance for labor and management to engage in genuine discussion on employment rule changes in relation to introduction of wage peak systems, amend guidance on operation and interpretation of employment rules |
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Reduce working hours |
[Reduction of working hours] Include holiday work in extended working hours and other complementary measures (such as special extended working hours) for greater acceptance of this reform, reduce the number of sectors where exceptions apply (from 26 to 10) [Flexible working hours system] Expand unit period (From 2 weeks to 1 month, and from 3 months to 6 months) |
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Improve employment of non-regular workers and alleviate disparities between primary contractors and subcontractors |
[Conversion to regular employment status] Induce companies (beginning with the public sector) to convert to regular employment status their non-regular workers engaged in constant and continuous work (Subsidize wage increase (50%), up to 600,000 KRW for one year).
[Win-win situation for primary contractors and subcontractors] Tax deductions of 7% of wage-sharing fund when primary contractors donate to it |
| Expand social safety net |
[Employment insurance] Extend payment period of unemployment benefits (30 additional days), increase benefits (from 50% to 60% of average wage) |
The government plans to discuss issues which require tripartite consultations such as reduction on working hours, non-regular workers and etc., in the Tripartite Committee discussions. The government also plans to continue its efforts to restore the Tripartite Committee.