Total Personnel Expenses for Local Public Institutions Confirmed at 1.7% Increase Rate

Wage Increase Rates to Be Differentiated to Close Wage Gap

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Ministry of the Interior and Safety finalized and announced the "2023 Total Labor Cost Increase Rate Standard (Guideline)" on the 4th, based on the budget formulation standards (guidelines) for local public institutions.

First, to address wage disparities among local public enterprises, the increase rate will be differentiated by 2.2~2.7% (+0.5 percentage points to 1.0 percentage points) for some institutions with relatively low wage levels, as in previous years.

In particular, this year, although the overall wage level of local public enterprises is high, for institutions where wages for public officials (permanent contract workers) are low, an additional 0.5 percentage points increase rate adjustment was made specifically for public officials. Additionally, improvements in treatment for public officials (permanent contract workers) were emphasized by raising meal allowances, welfare points, and holiday bonuses for those converted to regular employees.

Local investment and foundation institutions may set different increase rates through consultation with local governments if there are reasonable grounds. They will also raise meal allowances, welfare points, and holiday bonuses to improve treatment for public officials, similar to local public enterprises.

Furthermore, in the event of a declaration of a special disaster area, overtime pay for local public institution employees incurred due to disaster recovery and support work will be recognized outside the total labor cost limit.

Choi Byung-kwan, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, stated, “The total labor cost increase rate for local public institutions was finalized considering the recent economic situation, local financial conditions, and civil servant wage increase rates,” adding, “We will continuously support efforts to eliminate wage disparities with national public institutions, and plan to inspect and verify strict compliance with the total labor cost increase rate standards (guidelines) during management performance evaluations.”

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