Next Year Public Institution Wage Increase Rate 1.4%... Business Promotion Expenses 2% ↓

Low-wage institutions increase up to 2.4%... Public service workers may receive an additional 0.5%p raise

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[Sejong=Asia Economy Reporter Moon Chaeseok] The total personnel expense increase rate for public institutions next year has been finalized at 1.4%. Business promotion expenses will be cut by 2%.

According to the Ministry of Economy and Finance on the 9th, the government held a Public Institution Management Committee chaired by Deputy Minister Ando Geol on the 8th and finalized the 2022 budget operation guidelines for public enterprises and quasi-governmental institutions, which include these details.

The guidelines set the total personnel expense increase rate for public institutions next year at 1.4%, which is the same level as the civil servant wage increase rate. However, to reduce wage disparities among public institutions, an increase rate of 1.9% to 2.4% will be applied to some low-wage public institutions.

Low-wage public institutions refer to those whose wage levels are 90% or less of the related industry average and 70% or less of the public institution average. For institutions with a high overall wage level but low wages for public officials (permanent contract workers), an additional 0.5 percentage point increase in the wage rate for public officials will be applied separately.

Additional wages arising from ordinary wage lawsuits will be included in the total personnel expense limit going forward. This is intended to prevent similar lawsuits caused by failure to timely reflect lawsuit results in wage regulations and wage systems.

To encourage expenditure restructuring efforts by public institutions, ordinary expenses will be frozen at last year's level. Business promotion expenses will be cut by 2%.

According to these guidelines, each public institution will finalize its budget plan for next year and disclose it on the Public Institution Management Information Disclosure System.

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