Next Year, Public Institutions' Total Personnel Expenses to Increase by 3.0%

The government has decided to set the total labor cost increase rate for public institutions next year at 3.0% compared to the previous year.

On the 5th, the government finalized the "2025 Budget Operation Guidelines for Public Enterprises and Quasi-Governmental Institutions" at the 13th Public Institution Management Committee meeting. The 2025 budget operation guidelines are based on the following directions: △ active role of public institutions to revitalize the economy △ balanced promotion of management efficiency enhancement and realization of social responsibility △ steady implementation of public institution innovation plans to improve the quality of services to the public.

The government set the total labor cost increase rate for public institutions next year at 3.0%, the same as the civil servant wage increase rate compared to the previous year. The differential system for total labor cost increase rates applied to low-wage and high-wage institutions and low-wage indefinite contract workers, aimed at reducing wage gaps between institutions, will be applied the same as last year.

According to the "Institutional Improvement Plan for Work-Family Balance in Public Institutions" announced in May, the period during which excess personnel labor costs incurred by operating substitute personnel for parental leave are excluded from the labor cost increase rate calculation will be extended from 3 years to 5 years to promote parental leave.

Since child allowances have been excluded from the labor cost increase rate calculation starting this year, institutions that operated child allowances last year are at a disadvantage compared to institutions newly introducing child allowances. Therefore, they are allowed to choose whether to exclude child allowances from the labor cost increase rate calculation. Although congratulatory and condolence expenses cannot be supported by the budget according to the 2024 guidelines, birth congratulatory money among these expenses can be supported by the budget to encourage a family-friendly culture.

In addition, the holiday bonus amount to support the improvement of treatment for regular employees converted to subsidiaries and others was raised from 1 million KRW to 1.1 million KRW per year. To alleviate the workload of nurses at public medical institutions, which has increased due to the activation of the emergency medical system, the special night nursing allowance paid within the night nursing fee rate, which complies with the "Night Nursing Workforce Guideline," is excluded from the labor cost increase rate calculation.

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

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