Employee Benefits in South Korea

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South Korea has a well-developed economy and it is Asia’s fourth largest economy while being the world’s 12th largest by purchasing power parity. Moreover, it has a low unemployment rate (3.4%) and a very high standard of living. These are just a few of the many reasons why South Korea is one of the world’s most desirable employment destinations.

Employees in the country are entitled to a number of rights and benefits irrespective of their nationality. Among others, the most basic are:

Minimum Wage

The current minimum hourly wage rate in place is KRW4.320, while the daily minimum wage rate is KRW34.560. The minimum wage is calculated by adding fixed set allowances to basic pay, while excluding all other compensation, such as overtime pay, discretionary bonuses and fringe benefits.

Working hours

Since July 2011, all employers all required to implement the 40-hour work week, spreading over five working days. In the event that a corporation needs its employees to work more than 40 working hours, it must obtain the consent of each employee.

Paid Annual Leave

Employees are entitled to a minimum of one paid day leave per week. The paid week day off is usually Sunday. Moreover, employers must provide 15 days of paid annual leave after one year of employment with the corporation, and an additional day for every two subsequent years of service.

Paid Sick Leave

Employers in Indonesia are required to provide paid sick leave for any work-related injury, sickness, or death. Moreover, they are required to pay for medical expenses, survivor’s compensation and funeral expenses in the case of death.

Nevertheless, the Industrial Accident Compensation Insurance Act 1963 (IACIA) stipulates that an employer who registers with the industrial accident compensation insurance provided under the IACIA, is not liable to compensate the worker.

Paid Maternity Leave

Female employees are entitled to a total of 90 days’ paid maternity leave, which can be used before or after giving birth. Payment for 60 days is made by the employer, while the remaining 30 days is paid by the Employment Insurance Fund, which is a governmental fund. The 90 days’ paid maternity leave includes Sundays and holidays. In the event that a female employee exceeds the 90 days maternity leave, it will be considered as paid leave.

Employers should also grant 30 minutes of paid nursing periods twice per day for employees with infants under the age of one. Overall, paid maternity leave must be provided for premature births, stillbirths and miscarriages.