Kyobo Life Insurance Expands 'Salary Differentiation by Job Role' to All Employees

[Asia Economy Reporter Oh Hyung-gil] Kyobo Life Insurance announced on the 2nd that it will expand the job-based pay system, which has been applied to executives and department heads since this year, to all general employees.

The job-based pay system determines salaries based on the importance and difficulty of the work, the nature of the tasks, and the level of responsibility. Kyobo Life Insurance is the first in the financial industry to extend this system to general employees.

Kyobo Life Insurance separates a certain portion of the salary as a standard job-based pay and pays it according to each job grade. For example, if a third-year employee (Grade A) has a base salary of 40 million KRW (excluding performance bonuses), 600,000 KRW of that is separated as the standard job-based pay and paid according to the actual job grade.

If the employee performs a Grade A job, they receive 600,000 KRW; if they perform an SA (Assistant Manager) job, they receive 1.2 million KRW; and if they perform an M1 (Branch Manager) job, they receive 2.64 million KRW.

Even if the employee holds a higher rank but performs a job lower than their rank, the job-based pay decreases, and their annual salary is partially reduced accordingly.

Since the value of a job changes according to the company's strategy or market environment, Kyobo Life Insurance plans to establish a Job Grade Council to review the creation, closure, and changes of jobs.

A Kyobo Life Insurance official said, "The job-based pay system is the first personnel system implemented in the financial industry, and it is expected to rationalize rewards based on individual job performance, thereby contributing to improving corporate performance." He added, "We plan to expand rewards based on jobs from a mid- to long-term perspective."

This content was produced with the assistance of AI translation services.