Half of the Public Opposes 'Job Performance Pay System' as Wage Gap Remains Unresolved

Korean Confederation of Trade Unions Surveys 1,000 Citizens Aged 18 and Over
Yoon Seok-yeol Government Pushes Labor Market Reforms Including Seniority-Based Wage System Overhaul

On May 16th, Lee Jeong-sik, Minister of Employment and Labor, visited Kim Dong-myeong, Chairman of the Korean Federation of Trade Unions, at the Korean Federation of Trade Unions in Yeouido, Seoul, and had a discussion. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Culture Young Intern Reporter] A public opinion survey revealed that more than half of the public opposes the Yoon Seok-yeol administration's ongoing plan to reform the wage system by introducing a 'job performance-based wage system' to reduce wage disparities. Nearly half also expressed the opinion that the current seniority-based wage system should be maintained.

The Federation of Korean Trade Unions (FKTU) announced on the 1st that it commissioned STI, a public opinion research firm, to conduct a survey from October 25 to 26 targeting 1,000 people nationwide aged 18 and older regarding the introduction of the job performance-based wage system, and the results showed this trend.

Among respondents, 50.7% opposed the job performance-based wage system, 33.3% supported it, and 16.0% were unsure. Regarding the question on 'reducing wage disparities,' 58.6% responded that even if the job performance-based wage system is introduced, it would 'not help' reduce wage gaps between regular and non-regular workers, and between large and small-medium enterprises. Those who thought it would 'help' accounted for 30.5%, and 10.9% were unsure.

The MZ generation also showed a negative response to the job performance-based wage system. When asked, "What do you think about the Yoon Seok-yeol administration's push to reform the wage system with a job performance-based wage system?" 48.2% of respondents aged 18 to 29 opposed it. Support was 27.9%, and 23.9% were unsure. Among those in their 30s, opposition was 55.2%, with support at 30.2%. Young people had a more negative perception of the introduction of the job performance-based wage system compared to the average across all age groups (support 33.3%, opposition 50.7%).

The main reason for opposition was the belief that the job performance-based wage system would not help improve the dual structure of the labor market. When asked, "If the job performance-based wage system is introduced under the leadership of the Yoon Seok-yeol administration, do you think it will help reduce wage disparities between regular and non-regular workers, between large and small-medium enterprises, and across industries?" only 30.5% responded "it will help." The percentages who thought it would not help were 58.3% among those aged 18 to 29 and 61.0% among those in their 30s.

Regarding seniority-based pay (recognition for years of service), 42.8% supported the 'seniority-based wage system that reflects factors such as the number of dependents, years of service, and career.' Opposition was 28.4%, and 28.8% were unsure. Among respondents limited to wage workers (466 people), opposition to the job performance-based wage system was even more pronounced. Among wage workers, 58.4% opposed the introduction of the job performance-based wage system, and 65.9% responded that it would not help reduce wage disparities.

Based on these survey results, the FKTU held a forum titled 'Seeking Alternatives for Wage System to Resolve Wage Inequality' in the FKTU conference room in Yeouido on the afternoon of the same day. Kim Dong-myeong, chairman of the FKTU, said, "It is concerning that the wage system reform is being pushed forward while ignoring the opinions of workers and labor unions," adding, "The FKTU will do its best to resolve wage inequality through exploring new alternatives and measures such as industry-specific wage systems and joint bargaining."

The Yoon Seok-yeol administration is promoting future labor market reforms centered on 'reforming the seniority-based wage system' and 'autonomy in working hours.' In July, it launched the Future Labor Market Research Group within the Ministry of Employment and Labor as a control tower for discussing reform plans and is currently gathering public opinion from various sectors.

The Ministry of Employment and Labor is working to reform the current seniority-based wage system into a job performance-centered wage system so that individual performance and company results can be reflected in compensation. Currently, the wage of workers with more than 30 years of service is 2.87 times that of workers with less than one year of service. The government's position is that, given the rapid aging of the population, the seniority aspect of the wage system must be reduced to ensure workers' income is secured over a long period.

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