Mandatory Issuance of Wage Statements...Must Specify Amounts and Calculation Methods for Each Item

Deliberation and Resolution of the Cabinet Meeting on the Amendment to the Enforcement Decree of the Labor Standards Act

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[Sejong=Asia Economy Reporter Moon Chaeseok] From now on, employers must provide workers with a detailed statement that includes wage components, calculation methods, and deduction details when paying wages.

On the 16th, the Ministry of Employment and Labor announced that it reviewed and approved the Enforcement Decree of the Labor Standards Act, which stipulates the items to be written on the wage statement, at the Cabinet meeting held at the Government Seoul Office Building. The ministry explained, "Until now, some workplaces did not provide wage statements to workers or only informed them of the total amount," adding, "Therefore, to ensure that employers and workers accurately exchange information about wages and reduce disputes in case of wage arrears, the issuance of wage statements has been made mandatory."

The amended Labor Standards Act and its Enforcement Decree, effective from the 19th, require employers to provide workers with a statement detailing the worker’s name, date of birth, wage payment date and total amount, amounts for each wage component such as basic salary, allowances, bonuses, and performance pay, calculation methods for each wage component that vary depending on attendance days and working hours, and deduction details. The statement can be provided in writing, via email, mobile text message, or mobile messenger. It can also be posted on the company’s internal network for individual worker access. There is no specific prescribed format.

Employers who fail to provide the statement will be fined up to 5 million KRW. The amended Labor Standards Act also includes provisions allowing pregnant workers to change their commuting hours. If a pregnant worker requests to change the start and end times of work while maintaining daily working hours, the employer must allow it, and failure to comply will result in a fine of 5 million KRW. However, if changing the start and end times causes significant disruption to normal business operations, the employer may refuse the change.

With the legal amendment, the maximum amount of enforcement fines imposed on employers who fail to comply with remedial orders from the Labor Relations Commission has increased. For example, employers who do not comply with remedial orders regarding unfair dismissal must pay enforcement fines ranging from 5 million KRW to 30 million KRW.

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