Samsung Electronics and Display to Raise Wages by 2.5% This Year... Improvement of Wage Peak System

[Asia Economy Reporter Dongwoo Lee] Samsung Electronics will increase wages by 2.5% this year.

According to the business community on the 26th, Samsung Electronics and the Employee Council agreed on a standard wage increase rate of 2.5% for 2020.

Accordingly, Samsung Electronics employees will receive wages with differential increase rates applied based on the 2.5% standard, depending on individual performance evaluations and job grades.

This year's standard wage increase rate at Samsung Electronics fell by 1.0 percentage point compared to last year. The company's standard wage increase rates over the past five years were 1.9% in 2014, frozen in 2015, 2.0% in 2016, 2.9% in 2017, 3.5% in 2018, and 3.5% last year.

Samsung Electronics will also provide welfare points worth 500,000 KRW usable at FamilyNet Mall. FamilyNet Mall is a site offering Samsung Electronics employees benefits such as discounts on company products.

Samsung Electronics stated, "The decision to increase wages by 2.5% this year was made in consultation with the company and the council, considering the global crisis situation caused by various economic adversities including the novel coronavirus infection."

Samsung Display also finalized a standard wage increase rate of 2.5% for this year. The company will increase its contribution to personal pension plans by 0.5% and provide 500,000 KRW worth of points usable at FamilyNet Mall. Additionally, the wage peak system age will be extended from 55 to 57 years old.

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