Seoul Construction Workers See 3.4% Average Wage Increase with Weekly Holiday Pay Provision

Analysis of Wages for 1,000 Workers at 33 City-Ordered Sites ... 23% Receive Weekly Holiday Allowance

[Asia Economy Reporter Jo In-kyung] Seoul City announced on the 2nd that since July, after paying weekly holiday allowances to construction workers on public construction projects commissioned by the city, the proportion of workers receiving weekly holiday allowances increased from 14.3% to 37.7%, and the average monthly wage rose by 3.4% (72,956 KRW), from 2,174,000 KRW to 2,247,000 KRW.

This survey analyzed labor cost payments, weekly holiday allowance occurrence days, and average wage increases for about 1,000 workers across 33 sites. Due to irregular working days caused by the rainy season in July and as it reflects only the first month’s results, the city expects that more workers will benefit as the payment of weekly holiday allowances becomes established in actual workplaces.

Earlier, in May, Seoul City declared a "Construction Job Innovation" initiative to prepare for the post-COVID-19 era and announced that construction workers on city-commissioned public projects who work five days a week would be paid a weekly holiday allowance equivalent to one day’s wage. The main points of the innovation plan include ▲ full support of the 7.8% social insurance contribution previously deducted from workers’ wages, the first such policy nationwide ▲ mandatory payment of weekly holiday allowances and use of standard labor contracts ▲ incentives (employment improvement grants) for excellent businesses that improve the weekly wage system.

Since then, the city has reflected weekly holiday allowances in construction costs and continuously provides education to Seoul City, autonomous districts, and related agencies’ contract and supervision departments to ensure workers receive these allowances. A "Cost Reflection and Execution Manual" has also been distributed.

Meanwhile, the city is pushing to amend the "Seoul Metropolitan Ordinance on Revitalization of the Local Construction Industry" to support social insurance premiums such as national pension and health insurance for construction workers. Construction workers who work more than eight days a month at a single workplace are eligible for national pension and health insurance, but many have avoided enrollment due to the high 7.8% deduction rate. Going forward, the city will fully support these costs by reimbursing construction companies after settlement.

Han Je-hyun, Director of Seoul City’s Safety General Office, said, "While construction sites have traditionally operated on a daily wage basis, we will continue to innovate construction jobs to create an environment where workers receive allowances proportional to their work and can enroll in social insurance, enabling them to work stably."

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