“Realizing a world with respect for labor” – Gyeonggi Province Governor to implement Korea’s first fair allowance for temporary workers from January

Createdd 2021-01-06 Hit 126

Contents

○ Gyeonggi Province’s first policy of 2021 to provide fair allowance to temporary workers from January
– Reflects Governor Lee Jaemyung’s view that “lower wages for workers with unstable jobs is twofold discrimination”
○ Gyeonggi Province’s fair allowance to be granted in proportion to job instability from 5 to 10% of base pay
– 1,792 fixed-term workers of Gyeonggi Province and public institutions to benefit from policy this year

Gyeonggi Province’s first policy of the year to provide a fair allowance to temporary workers will be implemented from January.

This policy, the first of its kind to be implemented in the nation, reflects Gyeonggi Province Governor Lee Jaemyung’s view that “lower wages for workers with unstable jobs is twofold discrimination,” and that “even the public sector should focus more on temporary than permanent workers so as to pay more wages to temporary workers with shorter employment periods.”

The main element of this policy is the payment of a compensatory allowance of 5 to 10% of base pay in proportion to employment instability considering the employment period of fixed-term workers of Gyeonggi Province and public institutions.

This year’s beneficiaries total 1,792; 1,007 and 785 fixed-term workers of Gyeonggi Province and public institutions, respectively. This includes workers newly employed in 2021 who are waiting to assume duties and workers employed in 2020 and contracted until this year. For this purpose, an amount of KRW 1.8 billion has been budgeted this year.

Fixed-term workers employed for less than two months will receive KRW 337,000 with 10% of their base pay applied; those employed for less than four months will receive KRW 707,000 with 9% applied; and those employed for less than six months will receive KRW 988,000 with 8% applied.

Those employed for less than eight months will receive KRW 1,179,000 with 7% applied; those employed for less than 10 months will receive KRW 1,280,000 with 6% applied; and those employed for 12 months will receive KRW 1,291,000 with 5% applied.

The amount will be paid in a lump sum upon contract expiration. However, workers who were employed in the previous year will be given an allowance for their employment period in 2021.

To design this program, Gyeonggi Province referred to the employment instability allowance of France, the employment dismissal allowance of Spain, and the wage subsidy program of Australia, as well as the findings of surveys of residents and public officials in the Korean capital region.

France grants an employment instability allowance of 10% of an employee’s total wages, while Australia grants 15 to 30%, and Spain 5%.

The surveys also revealed that 76.5% of Korean capital region residents and 87.2% of Gyeonggi provincial officials thought a fair allowance was necessary. As for the amount of the allowance, residents indicated 8.6% as appropriate, whereas provincial officials indicated 14.83%.

To effectively implement the system, Gyeonggi Province will disseminate guidelines to each department of the provincial government and public institutions after collating the ideas of related agencies.

Gyeonggi Province Labor Bureau Director General Kim Gyu-sik said, “This policy will function as an opportunity to stabilize the livelihoods and employment of temporary workers. Through proactive and successful measures by the public sector, we will endeavor to expand the policy to the private sector so as to realize a fair world in which labor is respected.”